Rajesh Exports hit a second straight lower circuit after Sebi's interim order.
Sebi alleged revenue inflation, while the company denied any financial misreporting.
Shares have plunged 10% in two sessions amid regulatory scrutiny.
Shares of Rajesh Exports remained under pressure for a second consecutive session on Friday, hitting the 5% lower circuit after an interim order from market regulator Sebi raised concerns over alleged financial irregularities at the company.
The stock fell 5% to ₹98.73 on the NSE, extending its two-day decline to around 10%.
1 June 2026
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Investor sentiment weakened after Sebi said its investigation and forensic review had uncovered prima facie evidence suggesting that nearly 97-99% of the company's reported revenue may have been inflated. The regulator described the preliminary findings as "egregious and unheard of".
Sebi Action
As part of the interim order, Sebi restrained promoter Rajesh Mehta from buying, selling or dealing in securities of Rajesh Exports until further directions. The regulator also directed the company to fully cooperate with the ongoing investigation.
The probe was initiated following a shareholder complaint received in March 2024.
The market regulator's observations triggered heavy selling in the stock, which had also hit the 5% lower circuit in the previous session.
Rajesh Exports, however, rejected the allegations and said Sebi's order was interim in nature and did not contain any final conclusions.
In an exchange filing on Thursday, the company maintained that its reported revenues were accurate and denied any overstatement of earnings.
"There seems to be some type of communication gap and confusion between SEBI and the company," Rajesh Exports said.
The company added that it was in the process of submitting authenticated documents and remained confident that the regulator would arrive at the correct conclusion after reviewing the information.
In a separate filing, Rajesh Exports said the regulator's observations stemmed from an alleged misunderstanding involving its Swiss subsidiary Valcambi.
"The core observation in the order is concerning the misreporting of the revenues. This has emerged primarily due to confusion because SEBI has considered the EBITDA of Valcambi instead of Revenue; hence it has stated that there is a difference of about 97% in the revenue. The consolidated Revenue as stated by the Company is correct," the company said.
The latest selloff has deepened the stock's recent losses.
Rajesh Exports shares have declined more than 12% over the past week and around 13% over the last month. The stock is down approximately 42% so far in 2026, reflecting sustained investor concerns amid the regulatory scrutiny.
