On Monday, September 15, 2025, shares of rice exporter KRBL Ltd experienced a sharp decline, dropping as much as 13% to an intraday low of ₹387.05 on the BSE. This downturn followed the resignation of independent director Anil Kumar Chaudhary, who cited concerns regarding corporate governance.

Chaudhary, in his resignation letter, conveyed that the prevailing board dynamics were inconsistent with effective governance and independent oversight, which are crucial for protecting stakeholder interests. He highlighted several issues, including inconsistencies in recording meeting minutes, withholding information that impacted decision-making, and the write-off of certain export receivables without proper deliberation. He also raised questions regarding the use of CSR funds and the distribution of variable pay. Chaudhary stated that these issues persisted despite his attempts to address them through dialogue.

The independent director also pointed to "undue interference" during board meetings and significant changes in the company's object clause without detailed discussions. He expressed that remaining on the board under such circumstances would compromise his professional ethics and obligations under Indian corporate governance codes. KRBL, in its filing, confirmed that Chaudhary stated there were no other material reasons for his resignation beyond those mentioned in his letter.

The resignation and the concerns raised by Chaudhary appear to have rattled investors, leading to a decline in the stock price. The stock's performance has been volatile, with a cumulative decline over the past two days.

Despite the recent downturn, KRBL's longer-term performance has been noteworthy. The stock has gained over 33% in the past year, outperforming the Sensex, which saw a decline during the same period. Year-to-date, KRBL has achieved a return of 34.70%, while the Sensex has risen by 4.89%. The company's profit after tax (PAT) for the first quarter jumped 74% year-on-year (YoY) to Rs 151 crore, compared to Rs 87 crore in the same quarter of the previous fiscal, supported by robust revenue growth and improved operational performance. Revenue from operations rose 32% YoY to Rs 1,584 crore from Rs 1,199 crore, aided by strong demand in both domestic and export markets.

The recent challenges have led to a mixed market position for the stock. KRBL is currently positioned above its 100-day and 200-day moving averages but below its 5-day, 20-day, and 50-day averages.