Rajesh Exports Shares Bounce Back After Massive Revenue Inflation Allegations

Rajesh Exports shares witnessed a 5% surge to hit the upper circuit on Monday, providing a brief respite after a devastating 30% crash triggered by SEBI's interim order. The volatility follows serious allegations regarding a potential ₹15.15 lakh crore revenue inflation saga that has shaken investor confidence.

The SEBI Investigation and Revenue Inflation Claims

The turbulence began following an interim order from the Securities and Exchange Board of India (SEBI), which surfaced after a shareholder complaint in March 2024. SEBI’s forensic review and investigation suggested "prima facie" evidence that approximately 97% to 99% of the company's revenue might have been inflated. The regulator described these findings as "egregious and unheard of."

As a direct consequence of these findings, SEBI restrained promoter Rajesh Mehta from buying, selling, or dealing in the company's securities. The impact on the stock has been severe: Rajesh Exports has tumbled 55% in 2026 so far and has seen a staggering 87% decline over the last three years. The company’s market capitalization has plummeted to just ₹2,369 crore.

Rajesh Exports Denies Misreporting, Blames 'Communication Gap'

In a series of exchange filings, Rajesh Exports has strongly defended its financial integrity. The company maintains that its declared revenues are accurate and denies any overstatement of earnings. Instead, the management has attributed the discrepancy to a "communication gap and confusion" between the regulator and the firm.

According to the company, the massive 97% discrepancy noted by SEBI stems from a technical misunderstanding: the regulator allegedly considered the EBITDA of Valcambi instead of the actual Revenue. Rajesh Exports asserts that once authenticated documents are fully processed and submitted, the consolidated revenue figures will be proven correct.

Chairman Rajesh Mehta Maintains a Cooperative Stance

In a recent interview, founder and chairman Rajesh Mehta denied allegations that the company had obstructed the audit process. Mehta emphasized that the company has been forthcoming, stating, "We have submitted everything we were asked for. SEBI has not found anything; maybe we have missed out on something. All that will be reconciled now."

Notably, Mehta expressed that the company does not intend to legally contest SEBI’s interim directions at this stage. He pointed out that the order does not currently impose any fines, penalties, or coercive actions, suggesting that the company is willing to let the investigative process play out to reach a reconciliation of facts.

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