of Kore Digital's FY25 and FY26 revenue that SEBI says looks misstated
SEBI flags ₹541.3 crore of Kore Digital revenue as misstated
Kore Digital had the kind of growth story that would make any small-cap investor stop scrolling. Revenue jumped from ₹21 crore in FY23 to ₹408 crore in FY26, but SEBI's notification today puts a very different lens on that growth. The regulator says ₹541.3 crore of revenue across FY25 and FY26 was prima facie misstated. Most of the reported growth came from three subsidiaries: Franken Telecom, Wolter Infratech and KDL Realinfra, which Kore acquired in late 2024. By FY26, these subsidiaries accounted for roughly 85% of consolidated revenue.
SEBI then started checking what sat behind those numbers. All three companies had been incorporated only months before Kore acquired them, shared the same registered address and had limited filing histories. When surprise site visits were conducted in June 2026, SEBI said there was no visible evidence of several of these entities operating at their registered addresses.
The customer confirmations raised another question. Kore had reported revenue from Vodafone Idea, Airtel and Navayuga Engineering, but the numbers did not always match the customers' records. Kore recorded ₹13.48 crore from Vodafone Idea, while Vodafone's submission showed no revenue from Kore for the relevant period. SEBI also flagged ₹26.42 crore of revenue from Kashvee Infra Projects, an entity linked to Kore's MD, and questioned the movement of money raised through a ₹40.05 crore preferential issue and warrants.
Add more than 130 accounting adjustments between the company's bank book and actual bank statements, along with questions around some subsidiary audit reports, and the growth story becomes much harder to read at face value. SEBI has now ordered a forensic audit of Kore's books, restricted the company and key executives from accessing the securities market and stopped its proposed migration from the SME platform to the main board.
The order is interim, and these are prima facie findings, not a final adjudication. But the question for investors has changed: Kore reported ₹408 crore of revenue in FY26. SEBI is now asking how much of that revenue actually represents genuine economic activity.
Kore Digital's shares had lost 90% before SEBI stepped in
Daily closing price on NSE since the June 2023 listing. Most of the fall came in FY25 and FY26, the 2 years whose revenue SEBI now questions.
Share price, ₹, earlier prices divided by 3 for the 2:1 bonus of January 2025
FY25 and FY26: ₹541 cr of revenue questioned (Apr 2024 to Mar 2026)
Peak: ₹922 on 12 Sep 2024, 15 times the IPO price. The 3 subsidiaries were bought after this
NSE end-of-day files · 14 Jun 2023 to 18 Sep 2026