SEPC in focus after signing ₹854.57 Crore contract with SAIL-IISCO Steel Plant; Order book crosses ₹10,000 Cr
The Chennai-based engineering, procurement and construction company has secured a sizable steel-sector package, signed on October 8, 2026, at a ceremony attended by senior officials of the customer. The work forms part of a crude steel expansion in West Bengal and comes with a fixed delivery window. Management says the award lifts its order pipeline past a notable milestone. Even so, results released in August show earnings under pressure from a non-cash tax charge, which keeps the focus on execution.
Shares of SEPC Limited Ltd closed at Rs. 5.32, up 7.91 percent on Friday. The stock touched the intraday high of Rs. 5.47 after opening at Rs. 4.96 before slipping to a low of Rs. 4.86. The company commands a market capitalization of Rs. 1,021.64 crore.
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SEPC Signs Pellet Plant Contract at SAIL’s Burnpur Steel Works
SEPC Limited signed a Rs. 854.57 crore contract with Steel Authority of India Limited on October 8, 2026, for the Pellet Plant Package-2 at the SAIL-IISCO Steel Plant in Burnpur, West Bengal. The Chennai-based company had received the letter of acceptance in August. Managing Director Venkataramani Jaiganesh signed for SEPC, while Praveen Kumar, Executive Director (Projects), signed for the plant.
The work covers balance-of-plant facilities, including civil and structural works, under the plant’s 4.08 MTPA crude steel expansion, and will run on a divisible turnkey basis. The total contract price is Rs. 951.60 crore. After passing on Rs. 97.04 crore of input tax credit to SAIL, the net value comes to Rs. 854.57 crore. The facilities must be commissioned within 32 months of the effective date, September 3, 2026, so the deadline falls around May 2029.
What the Order Means for SEPC’s Earnings and Cash Flow
The contract lifts SEPC’s consolidated order book above Rs. 10,000 crore. That is over nine times its FY26 total income of Rs. 1,085.8 crore, and the Burnpur package on its own equals roughly 79 percent of that figure. Spread over almost three years, it should keep the company’s sites busy and give management a clearer view of revenue. The managing director said the larger book gives SEPC the confidence to bid for bigger and more complex industrial and infrastructure jobs.
Still, the books need watching. In the June 2026 quarter, consolidated pre-tax profit was Rs. 13.17 crore, but a Rs. 24.22 crore deferred tax charge pushed the company to a net loss of Rs. 11.05 crore. The company calls the charge a non-cash write-off. The auditors, MSKA & Associates, issued a qualified conclusion on the deferred tax asset and on overdue non-current contract assets and trade receivables tied to stalled projects. Finance costs of Rs. 11.47 crore also remain heavy. Converting this order into cash on schedule will matter as much as winning it.
Financial Performance
Looking at the quarterly results of SEPC Limited, the company’s consolidated revenue from operations increased by 35.4 percent YoY, from Rs. 202.28 crore in Q1 FY26 to Rs. 273.80 crore in Q1 FY27. Compared with Q4 FY26, revenue was nearly unchanged, dipping 0.01 percent from Rs. 273.83 crore. SEPC Limited generated 56.6 percent of its revenue from operations outside India and 43.4 percent from India in Q1 FY27.
In Q1 FY27, SEPC Limited’s consolidated results swung to a net loss of Rs. 11.05 crore, against a net profit of Rs. 16.55 crore in the same period last year, a decline of 166.8 percent YoY. Compared with Q4 FY26, when the company earned Rs. 13.73 crore, the result is down 180.5 percent. The loss follows a deferred tax charge of Rs. 24.22 crore, which the company describes as a non-cash adjustment. The basic earnings per share fell to a loss of Rs. 0.06, as against earnings of Rs. 0.11 recorded in the same quarter of the previous year, FY2026.
Industry Outlook: Why Steel Expansion Matters for EPC Companies
Steel demand follows how fast India builds, and the country is still building roads, housing, ports and factories. Producers like SAIL are adding capacity to keep up, and every expansion like Burnpur’s needs contractors for the plants, utilities and structures around the main units. EPC firms with industrial experience tend to gain when government capital spending holds up.
The picture isn’t risk-free, though. Steel prices, input costs, interest rates and slow regulatory approvals can all stretch schedules and thin margins. Contractors with stretched balance sheets feel it first, since working capital stays locked while payments wait. SEPC’s own receivables on stalled projects, which its auditors flagged, show how that plays out. The order fits the demand cycle well, but results will depend on execution over roughly three years.
Company Overview
SEPC Limited, formerly Shriram EPC Limited, is a Chennai-based engineering, procurement and construction company. It builds large turnkey projects in water and wastewater, roads, industrial infrastructure and mining, mostly for central and state government agencies across India. In FY26, the company reported total income of Rs. 1,085.8 crore, EBITDA of Rs. 108.9 crore and net profit of Rs. 53.5 crore.