Shares of Rajesh Exports Ltd. plummeted 5% for the second consecutive trading session on Friday, hitting the lower circuit limit. This sharp decline occurred despite the company's public statements denying any financial irregularities and clarifying its stance on a regulatory inquiry.
SEBI Questions Revenue Reporting
The precious metals refiner has been under intense market focus after India's markets regulator, SEBI, raised suspicions regarding the company's revenue reporting. SEBI reportedly suspects Rajesh Exports of misrepresenting approximately Rs 15.15 lakh crore in revenues. This substantial figure accounts for 99.80% of the revenues generated by its subsidiaries between the financial years 2021 and 2025.
The company, however, maintains that its consolidated revenue figures are accurate and that all financial reporting has been transparent and compliant. Rajesh Exports stated that the core observation from SEBI regarding alleged mis-reporting of revenues primarily stems from a misunderstanding. The company asserts that SEBI has considered the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of its subsidiary, Valcambi, instead of its actual revenue, leading to the confusion.
Company Denies Intentional Inflation
In its clarification, Rajesh Exports emphasized, "There is no reason for any listed entity to inflate revenue and maintain the earnings, this will only reduce the margins of the company, which would be adverse to the company." The company further clarified that SEBI's observations were solely focused on revenue figures and did not raise adverse concerns regarding its earnings.
Stock Performance Suffers Significant Drop
The ongoing scrutiny and market reaction have taken a heavy toll on Rajesh Exports' stock performance. With the latest 5% fall, the scrip closed at Rs 99.45 apiece on the BSE. The share price is now down a staggering 58% from its 52-week high of Rs 239, which it touched on December 22, 2025. Furthermore, the stock has seen a 50% decline over the past one year, highlighting significant investor concern amidst the regulatory questions.