SEBI Flags ₹15.15 Lakh Crore Revenue Mismatch At Rajesh Exports; Stock Locked In Lower Circuit

Rajesh Exports shares hit the 5% lower circuit at ₹104.65 on the National Stock Exchange (NSE) on Thursday morning after Securities Exchange Board of India (SEBI) took interim action against the gold refining and jewellery export company and its promoter Rajesh Mehta, barring both from participating in the securities market pending further investigation.

The regulator has alleged that the company overstated its revenues by ₹15.15 lakh crore across five financial years between FY21 and FY25, potentially making it one of the largest revenue misrepresentation cases in Indian corporate history.

The stock has lost nearly 10% over the past week and is down 54% from its 52-week high of ₹239 hit in December 2025.

At 1:18 PM, Rajesh Exports shares have further declined 4.99% at ₹103.92 on the NSE.

What SEBI Found

The action stems from a shareholder complaint over financial disclosures. SEBI appointed an investigating authority in Oct 2024 and appointed forensic auditor BDO to look into the company’s books. The results of the audit were startling – 97% to 99% of Rajesh Exports’ reported revenues were booked by overseas subsidiaries, the most important being Valcambi, its Switzerland-based refining unit.

When BDO verified Valcambi's actual revenues, they fell far short of the figures reported at the consolidated level, producing a cumulative mismatch of ₹15.15 lakh crore.

The probe also flagged concerns around a claimed ₹1,035 crore investment in an Africa-based gold mine that auditors could not verify. If fictitious, this would further inflate the company's stated asset base.

Additionally, to note, Life Insurance Corporation of India (LIC), the country’s largest institutional investor and custodian of policyholder funds, continues to hold a 10.80% stake in Rajesh Exports. Shareholding data for the quarter ended March 2026 shows that LIC has neither increased nor reduced its holding, maintaining the same stake since at least September 2023.

The Company Did Not Co-operate

The investigation ran into significant roadblocks. SEBI stated that the company failed to provide important customer and vendor records, and financial statements of material subsidiaries were not disclosed.

BDO had to perform its audit under severe limitations, and there were inconsistent submissions and active non-cooperation throughout the process, according to SEBI.

Q4 Numbers Add To Concerns

Rajesh Exports' March quarter results painted a troubled picture independent of the regulatory action. The company reported consolidated revenue from operations of ₹2,36,864 crore in Q4 FY26, sharply higher than ₹1,09,189 crore in the same quarter last year.

However, losses widened significantly. Loss before tax came in at ₹39.9 crore versus ₹8.31 crore a year ago, while net loss for the March quarter stood at ₹53.46 crore compared to a profit of ₹1.96 crore in the year-ago period.

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What Happens Next

The interim order is not SEBI's final word on the matter. Rajesh Exports and Mehta retain the right to respond before any conclusive determination is made. If the allegations are upheld, the company could face significant penalties, disgorgement of gains and a longer ban from capital markets. The company is yet to publicly respond to the allegations.

Market participants will be wary in the absence of further visibility. Such regulatory scrutiny is likely to keep the stock under pressure in the near-term.

Sources:

Business Standard

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