Jyoti CNC Automation shares crashed nearly 16% on Monday, April 13, following news that French authorities are investigating its subsidiary Huron Graffenstaden SAS for alleged breaches of EU export control regulations concerning dual-use technology machinery. According to The Hindu BusinessLine, the stock tumbled as much as 16% to hit an intraday low of ₹691.90 on the NSE, down from the previous close of ₹819.20. The sharp selloff wiped off more than ₹2,895 crore from the total market capitalisation, dragging it down to ₹15,735 crore. The stock has dropped more than 29% in 2026 so far and around 31% in one year, with a P/E ratio of 52.57. The company has a total market capitalisation of ₹16,076.54 crore according to NSE data.
The French inquiry has resulted in substantial interim actions, including the freezing of EUR 4.00 million in bank accounts, limitations on the director general's responsibilities, and the attachment of two residential properties. As reported by The Hindu BusinessLine, French authorities have initiated a formal judicial investigation against Huron Graffenstaden SAS and certain employees, suspecting that it exported certain machines with dual-use technology and violated European Union laws. In an exchange filing on Sunday, Jyoti CNC confirmed that the French authorities investigation was regarding export controls and export-documentation of machinery considered to be of dual use. The subsidiary has been formally notified about the allegations and denies these claims, with Huron Graffenstaden SAS currently seeking better clarity from relevant authorities and legal advice to vigorously challenge the accusations. Based on the company's evaluation, although some confiscated assets and services of certain staff members under scrutiny may be temporarily inaccessible, the subsidiary's current business and operations continue as normal. The company has also confirmed that authorities have carried out an interim seizure of two residential properties owned by Jyoti SAS.
Despite the subsidiary probe, Jyoti CNC Automation maintains that the investigation will not negatively affect its standalone business activities, as the parent company accounts for over 85% of group revenues. According to The Hindu BusinessLine, the company stated that it does not expect any adverse impact on its overall business operations, highlighting that on a standalone basis it contributes over 85% of revenue from operations for the group. While the formal outcome of the probe is awaited, the French authorities have already undertaken some interim measures including temporarily restricting the director general of Huron Graffenstaden SAS from discharging any duties pertaining to the company. The company emphasizes that the actions are not expected to have any adverse impact on business and operations of Jyoti CNC Automation, which on a standalone basis contributed over 85% of revenue from operations for the group. Jyoti CNC stated that at this juncture, while the assets are seized and services of certain employees who are part of the probe may not be available to the Group for the moment, the current business and operations of Huron Graffenstaden remain as usual. The company has also confirmed that Huron Graffenstaden SAS has received a notice regarding the actions, refutes the allegations made, and is currently seeking better clarity from relevant authorities as well as legal advice in relation to the actions initiated, stating they will contest it strongly.
The French subsidiary Huron Graffenstaden SAS serves as a critical European hub for advanced manufacturing, specializing in high-precision 5-axis CNC machines for industries like aerospace, automotive, and defense. According to ET Now, in November 2025, Huron inaugurated an expanded facility in France, 2x its production capacity to meet growing global demand. The sharp decline reflects broader market concerns about the ongoing investigation, with the stock experiencing significant volatility over recent trading sessions. Over the past five trading sessions, the small-cap stocks have fallen 8%, while they have slumped 25% in the last six months. From the beginning of the year, Jyoti CNC Automation's share has tumbled 29%, with the stock hitting a 52-week high of ₹1,330 on June 2, 2025, and a 52-week low of ₹686.75 on March 16, 2026. The current trading price of ₹691.90 represents a significant decline from the previous close of ₹819.20, indicating continued market pressure following the disclosure of the investigation details.
