Rajesh Exports hits lower circuit; Sebi flags ₹15-trn revenue inflation

Rajesh Exports shares hit a 5-per cent lower circuit after Sebi alleged ₹15.15 trillion revenue inflation and barred the company and promoter from the securities market

Rajesh Exports shares witnessed sharp selling pressure on Thursday, June 4, after the Securities and Exchange Board of India (Sebi) took interim action against the company and its promoter, Rajesh Mehta, over alleged discrepancies in the firm's financial reporting.  Rajesh Exports share price was locked in the 5-per cent lower circuit, at ₹104.65 per share, on the BSE at 9:30 AM as against a 0.3 per cent dip in the benchmark BSE Sensex index. 

Over the past one week, shares of the gems and jewellery company have declined nearly 10 per cent on the BSE. They have plunged 54 per cent from their 52-week high level of ₹239 hit on December 22, 2025.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Why are Rajesh Exports shares falling today?

Rajesh Exports stock declined in trade as investors assessed the implications of Sebi's findings, which indicated that the company may have significantly overstated its revenue figures over several years. It estimates inflated revenue of ₹15.15 trillion. 

The market regulator has temporarily restrained the company and its promoter from participating in the securities market pending further investigation.

  Sebi's order highlighted concerns regarding transactions involving certain overseas entities and alleged that the reported turnover did not accurately reflect the underlying economic activity. The regulator has initiated a detailed examination of the matter and directed the company to extend full cooperation to the ongoing probe. 

The development weighed heavily on investor sentiment, with market participants concerned about potential governance issues and the impact of the investigation on the company's credibility. Analysts said regulatory scrutiny of this scale is likely to keep the stock under pressure in the near term until more details emerge. 

On its part, Rajesh Exports, a major player in the gold refining and jewellery export business, said "there seems to be some type of communication gap and confusion between Sebi and the company."  While providing clarification to the exchanges, Rajesh Exports said the revenues declared by the company are correct and there is no overstating of revenues.  "The company is in the process of clarifying all aspects to Sebi by submitting all the required and relevant documents... The order is interim and there has been no any adverse conclusion on any aspect arrived by Sebi," it added. 

The statement further said that the company is confident that Sebi, in its wisdom, will clarify the situation and arrive at the correct conclusion based on the authenticated documents which are in the process of submission by the company.

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Rajesh Exports Q4 results

For the quarter ended March 2026 (Q4FY26), Rajesh Exports reported consolidated revenue from operations worth ₹2,36,864.21 crore, higher than ₹1,09,189.67-crore revenue seen in the corresponding quarter of the previous fiscal (Q4FY25). 

However, owing to higher expenses, the company’s loss before tax widened to ₹39.9 crore in Q4FY26 versus ₹8.31 crore last year. 

It also posted a net loss of ₹53.46 crore in the March 2026 quarter, compared to a profit of ₹1.96 crore year-on-year.