Rajesh Exports has issued a clarification regarding the interim order passed by the Securities and Exchange Board of India (SEBI) on June 03, 2026, stating that the regulator has not made any conclusive adverse findings against the company. The firm emphasized that no fine, penalty, or coercive action has been imposed, which it asserts establishes the absence of adverse conclusions. This response follows media speculation concerning the regulatory directive, which also includes restrictions on Rajesh Mehta from trading in the company's securities.

Company's Clarification on Findings

Rajesh Exports asserted that its financial reporting, including revenue figures, is correct. The company attributed the core observation in the SEBI order regarding mis-reporting to a confusion between the EBITDA of its subsidiary Valcambi and its revenue. SEBI reportedly noted a difference of about 97% in revenue, a discrepancy the company claims arose because the regulator considered Valcambi's EBITDA instead of its revenue. The company stated that its consolidated revenue is accurate.

Nature of the Regulatory Order

The company clarified that the order is interim in nature and that SEBI has not made any adverse observations regarding its earnings. The regulator reportedly observed suspicion solely with regard to revenues, which the company attributes to the confusion surrounding Valcambi's financials. Rajesh Exports described the entire matter as a result of a communication gap and expressed confidence that it will clarify the issue with SEBI by presenting all required documents.

The company argued that there is no rationale for a listed entity to inflate revenue while maintaining earnings, as such an action would reduce margins and adversely affect the company.

Rajesh Exports Limited reported a standalone net profit of ₹320.92 million for the financial year ended March 31, 2026, an increase from ₹237.57 million in the previous year. The board of directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The company reported total income from operations of ₹92914.80 million for FY26, compared to ₹70851.38 million in FY25.

For the fourth quarter of FY26, the company recorded a net loss of ₹170.94 million, contrasting with a net profit of ₹134.76 million in the preceding quarter. In the same period last year (Q4FY25), the company reported a net loss of ₹162.93 million. Total income for Q4FY26 stood at ₹25157.73 million, while total expenses were ₹25370.07 million.

Financial Performance

The standalone financial results were audited by B S D & Co, Chartered Accountants, who issued an unmodified opinion. The earnings per share (EPS) for the full year was reported at ₹1.09, up from ₹0.81 in the previous year. However, the basic EPS for Q4FY26 was negative at ₹(0.58).

Balance Sheet Highlights

The company's total assets as of March 31, 2026, stood at ₹75670.02 million, an increase from ₹74661.42 million in the previous year. Equity share capital remained unchanged at ₹295.26 million. Borrowings increased to ₹10001.14 million in FY26 from ₹9212.12 million in FY25.

The filing was submitted to the Bombay Stock Exchange and the National Stock Exchange in compliance with Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.