eMudhra Shares Plunge 37% in Two Sessions Following Cybersecurity Advisory

Shares of cybersecurity and digital trust firm eMudhra Ltd plunged roughly 37% across two consecutive trading sessions, hitting a 52-week low of ₹345.60 on the National Stock Exchange.

The massive sell-off followed an urgent security advisory from CERT-In flagging a critical cryptographic vulnerability in eight of the company's intermediate Certificate Authority certificates.

The issue stems from a flawed key-generation ceremony on April 30, 2025, which accidentally generated weak private keys vulnerable to recovery via AI-assisted reverse engineering. In response, the Ministry of Electronics and Information Technology (MeitY) constituted a special team to investigate the Public Key Infrastructure breach.

However, MeitY reassured the public that the impact on domestic systems is highly constrained, stating, “The impact of this incident on Indian websites and applications has been very limited and for a very short interval.”

Crucially, eMudhra’s domestic Digital Signature Certificates (DSC) and eSign services remain completely separate and secure. Downplaying systemic risk, eMudhra co-founder Kaushik Srinivasan told PTI, "There's no impact to subscribers because we have done all the actions." Despite management labelling the event a "one-off on a bad day," investors dumped stock on heightened global reputational concerns.

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