Rajesh Exports, a major player in the gold refining business, is under sharp market pressure after SEBI’s interim order raised serious concerns about its financial reporting. The stock has fallen over 16% in a week, hitting lower circuits twice, as investors worry about credibility more than valuations.
SEBI alleged that between FY21 and FY25, the company misrepresented nearly ₹15.15 trillion in subsidiary revenue, amounting to almost 99.8% of reported sales. The regulator believes Rajesh Exports overstated its operational scale and performance.
The company strongly denied wrongdoing, claiming SEBI misunderstood figures from its Swiss subsidiary Valcambi. According to Rajesh Exports, SEBI treated EBITDA as revenue, leading to confusion. It insists its consolidated revenue numbers are correct and no penalties or coercive actions have been imposed.
The controversy has drawn comparisons with Gensol Engineering’s 2025 scandal, where promoters allegedly diverted funds and shareholder wealth collapsed by 80–90%. Analysts warn that governance risks, such as questionable transactions and promoter-linked fund flows, now overshadow business fundamentals.
Experts believe the issue is less about earnings and more about trust in disclosures. Until clarity emerges, Rajesh Exports may be treated as a governance-risk stock rather than a value opportunity.
