Stock Crash: eMudhra shares down 34% in three sessions; Management says 'one-off incident on a bad day'

Shares of eMudhra extended losses for the third consecutive day on Thursday, October 22. The stock is down another 13% in today's session. The management, in an interaction with CNBC-TV18, called the incident a "one-off on a bad day."This comes post the stock declining 20% on Wednesday after the Centre's nodal agency for cyber security issued an urgent advisory on the company.The Indian Computer Emergency Response Team issued an urgent advisory post a critical security incident involving eMudhra, after the company reported a compromise of private keys with regards to eight immediate Certificate Authority certificates.Kaushik Srinivasan of eMudhra told CNBC-TV18 that this is a script and not a machine error and requires an internal assessment of the company's own quality control.Srinivasan went on to add that the concerned business is only 1% of the company's global revenue and there is no impact on the digital enterprise revenue.The Ministry of Electronics and Information Technology also took serious note of the incident and formed a special team to probe the matter, government sources said on Wednesday.

They also cautioned against "fear mongering" by some social media handles.The sources told CNBC-TV18 that the impact of the incident on Indian websites and applications has been limited and lasted for a short while. They clarified that Digital Signature Certificates and eSign services, which are regulated by the Controller of Certifying Authorities under MeitY, remain completely unaffected.The IT ministry officials also visited eMudhra and asked them a bunch of questions, according to Srinivasan, who said that they continue to share information and does not anticipate any further spillover from the current situation.Sources said eMudhra has two distinct functions — it issues digital signature certificates and provides eSign services regulated by the CCA. It also issues digital certificates trusted by major browsers and operating systems, which are utilized to secure websites, online communications and software.The second function operates international under a global trusted framework and is governed by international standards.

It is subject to independent audits, the sources added, clarifying that the reported security incident was related only to this function, whose audit is not overseen by MeitY.MeitY was engaging with all stakeholders to resolve the incident at the earliest, the sources said.Shares of eMudhra are trading 14.3% lower on Wednesday seeing no recovery after the management interaction at ₹368.35.The stock is just a percent away from its 52-week low of ₹364.55 apiece. It has fallen 42.1% in the past month and has declined 33% in 2026, so far.Also Read: 'Sell these defence stocks' is the word from Goldman Sachs - Three key reasons behind the bearish call