Jyoti Automation shares tank nearly 16% as firm's French arm faces probe; here is what is known so far

The investigation follows suspicions that Jyoti CNC Automation’s indirect wholly owned subsidiary, Huron Graffenstaden SAS, exported certain machines with dual-use technology in alleged violation of European Union laws.

Jyoti CNC Automation said that, while it awaits a formal outcome of the ongoing investigation, it has been informed of certain interim measures taken by French authorities. These include temporarily restricting the Director General of Huron Graffenstaden SAS from discharging duties related to the company and the interim seizure of certain bank accounts of Huron Graffenstaden SAS amounting to around EUR 4.0 million.

The company further said that the authorities have also carried out an interim seizure of two residential properties owned by Jyoti SAS and initiated a formal judicial investigation against Huron Graffenstaden SAS and some of its employees.

Jyoti Automation said 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. They will contest it strongly.

“At this juncture, our Company believes that while the assets being seized and the services of certain employees who are part of the investigation may not be available to the Group for the time being, the current business and operations of Huron Graffenstaden SAS remain as usual,” Jyoti CNC Automation said in a regulatory filing.

However, the company also said that the actions are not expected to have any adverse impact on the business and operations of Jyoti CNC Automation Limited, which on a standalone basis contributed over 85% of revenue from operations for the Group.

Jyoti CNC Automation share price

At 10:50 AM, shares of Jyoti CNC Automation were trading at ₹706.30 apiece on the National Stock Exchange, declining 13.78%.

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%.

The company has a total market capitalisation of ₹16,076.54 crore, according to NSE data.

Shares of the firm had hit a 52-week high of ₹1,330 on June 2, 2025, and a 52-week low of ₹686.75 on March 16, 2026.