E-commerce firm Meesho has logged a more than threefold jump in its tax disputes to Rs 2,071.8 crore in the financial year 2025-26, the company said in its annual report.
The Income Tax authorities had raised a demand notice of over Rs 572 crore to the company in the fiscal year 2024-25, which the company has challenged in court and received a stay order.
"During the year ended March 31, 2026, the Income Tax authorities made certain additions to the taxable income declared for AY 2023-24. Consequently, a demand of Rs 14,997.38 million was raised, along with a show-cause notice for initiation of penalty proceedings under Sections 274 and 270A of the Income-tax Act, 1961," the report said.
Both demand notices from income tax authorities cumulatively amount to Rs 2,071.8 crore.
Meesho said that it has filed a rectification request against the assessment order with the Deputy Commissioner of Income Tax and has also filed an appeal before the National Faceless Appeal Centre, Delhi.
Talking about the company's performance, Meesho Chairman, Managing Director and Chief Executive Officer Vidit Aatrey said FY26 was one of the strongest years for the company and it was also a year in which the firm chose to invest heavily for the future.
"During FY26, we deliberately increased spending on user acquisition and on technology. The conditions for adding users efficiently were extremely good, and the right response was to lean in. That choice had a cost, and I want to be plain about it," he said.
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Aatrey said contribution margin and free cash flow both stepped back this year as the company funded consumer acquisition and built capability ahead of the revenue it will generate.
"Every rupee of this investment was tested against the same long-term return thresholds we apply to everything else, and we held back wherever the maths did not clear them. We expect these investments to compound into a larger, more engaged, and lower-cost-to-serve user base over the coming years," he said.
According to the report, Meesho recorded a 33 per cent increase in user base to 26.4 crore.
The company saw an 87 per cent increase in annual transacting sellers to 9.61 lakh. The company's logistics network comprised 18,000 logistics partners and approximately 120,000 delivery agents during FY26.
Meesho said that content-led commerce became a major growth driver, with 63,213 active content creators generating over 1.4 million pieces of order-generating content on the platform, the report said.
The company had reported narrowing of loss to Rs 1,358 crore in FY26 from Rs 3,942 crore in FY25.
Meesho's annual consolidated revenue increased to Rs 12,626 crore in FY26 from Rs 9,390 crore.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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