eMudhra share price hits 20% lower circuit after researcher flags weak keys | Can the stock recover? What lies ahead?
eMudhra shares were locked in a 20% lower circuit on Wednesday after the company issued a statement addressing recent reports of distrust in some of its intermediate Certificate Authorities (CAs) used in its global Transport Layer Security (TLS) business.
The issue involves eight of eMudhra’s intermediate CAs that were trusted as part of its global TLS business. These issuing CAs were created under the company’s ECC root during a Key Generation Ceremony (KGC) held on April 30, 2025, using FIPS 140-2 Level 3 Hardware Security Modules (HSMs).
According to eMudhra, a flaw in the key generation process caused a wrap/unwrap step to produce a second set of weak keys alongside the original strong keys. The weak keys were subsequently published to browser root stores. The company said it is working to establish the root cause of the issue.
The affected roots and issuing CAs had undergone independent audits for two consecutive years and had been included in browser trust lists since mid-2025.
Over the past weekend, an independent researcher discovered that the weak keys could potentially be reverse-engineered, possibly with the assistance of artificial intelligence (AI). The researcher reported the findings to major root programs operated by Apple, Google, Microsoft and Mozilla.
eMudhra says no infrastructure compromise or data breach
The company said its infrastructure had not been compromised and no data breach had occurred. It added that all physical and logical security controls remained intact.
eMudhra clarified that the incident is unrelated to its Indian Digital Signature Certificate (DSC) and eSign businesses. The global TLS operations run on infrastructure that is completely separate from the company's India DSC business.
Its DSC and eSign services in India continue to operate normally, the company said.
eMudhra said the affected global TLS business accounts for approximately 1% of its revenue, limiting the direct commercial exposure. However, it acknowledged that the incident could pose reputational risks whose potential impact cannot currently be quantified.
The company is working directly with potentially affected customers to provide replacement certificates and prevent disruptions to critical services. It is also coordinating with the relevant root programs and continuing its investigation into the root cause of the flaw.
eMudhra share price today opened at an intraday high of ₹535 per share on the BSE, the stock touched an intraday low of ₹431.55 per share.
Gaurav Arora, Head of Research at SAHI, said eMudhra is facing sharp selling pressure, with the stock falling 20% and approaching its 52-week low of ₹365. He identified ₹365 as a crucial support level, as it represents the only significant demand zone on the chart.
Arora noted that momentum indicators reflect the weakness, with the relative strength index (RSI) already in oversold territory on the daily chart and nearing oversold levels on the weekly chart, indicating a sharp and sustained decline.
With selling pressure continuing to dominate price action, ₹365 remains a key level to watch. A breakdown below this support could trigger further downside, while signs of stabilisation around this level could indicate that the current selling pressure is beginning to ease.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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