SEPC Reports 40% Year-on-Year Revenue Growth in Q1 FY27 Amid Overseas Margin Pressure

SEPC Reports 40% Year-on-Year Revenue Growth in Q1 FY27 Amid Overseas Margin Pressure​

Chennai: SEPC Limited, a leading EPC company specializing in industrial infrastructure and water management projects, announced its consolidated financial results for the first quarter (Q1 FY27) ended June 30, 2026. The company achieved strong topline growth of 40% year-on-year despite facing challenges related to margins on its international project sites operating in a difficult regional environment.

The robust performance was supported by a substantial order intake, anchored by major wins from SAIL at the IISCO Burnpur Steel Plant, which highlights the strength and diversification across SEPC's global portfolio.

Financial Performance Snapshot​

SEPC reported Total Income of ₹ 282 Cr in Q1 FY27, marking a significant increase from ₹ 202 Cr recorded in the first quarter of FY26. The company’s EBITDA stood at ₹ 26 Cr, translating to an EBITDA margin of 9.2%, down from the ₹ 30 Cr and 14.9% seen in Q1 FY26. Furthermore, SEPC reported a net loss of ₹ 11 Cr, compared against a net profit of ₹ 17 Cr in Q1 FY26. Management indicated that margin pressure stemmed from execution-phase impacts on select overseas contracts and is implementing cost and pricing measures to improve margins moving forward.

A detailed look at the financial performance and order book stands:

Order Book and Business Momentum​

The company maintains a solid order book, with total orders on hand standing at ₹ 10,670 Cr as of June 30, 2026. This pipeline is split between domestic and international projects:

• Domestic Order Book: ₹ 5,270 Cr
• International Order Book: ₹ 5,400 Cr (spanning Uzbekistan and Saudi Arabia)

The domestic order book demonstrates diverse sector exposure, including Mining (₹ 2,796 Cr), Water (₹ 699 Cr), Industrial EPC (₹ 681 Cr), Power (₹ 607 Cr), Construction (₹ 366 Cr), Roads (₹ 89 Cr), and Oil & Gas (₹ 32 Cr).

SEPC successfully secured multiple orders at SAIL's IISCO Burnpur Steel Plant during the quarter. These contracts include a Sinter Plant BOP package (₹ 423.29 Cr), a Coke Oven BOP package (₹ 350.28 Cr), and, in early August, a 4.2 MTPA Pellet Plant BOP package valued at ₹ 952.19 Cr.

Looking ahead, SEPC has identified opportunities totaling ₹ 1,280 Cr in Water & Infrastructure and an additional ₹ 3,060 Cr in Industrial EPC that are currently under evaluation.

Strategic Developments and Management Commentary​

SEPC is advancing strategic initiatives aimed at strengthening its delivery capabilities. The company completed board and shareholder approvals for the proposed acquisition of Avenir International, though this transaction is pending exchange and lender approvals. Furthermore, funds from a recent rights issue have been utilized to meet working capital requirements, debt repayment, and NCD redemption.

Mr. Venkataramani Jaiganesh, Managing Director of SEPC Limited, commented on the Q1 FY27 results, stating that it marked a "strong start to the year, with revenue growing 40% year-on-year." He noted that while margins were under pressure in specific international projects, "our focus remains on disciplined execution, cost optimisation and improving project-level profitability as these projects progress."

He emphasized the strength of the order book across multiple sectors and added that recent wins from SAIL significantly bolstered their position in the metals and mining segment.

About SEPC Limited​

SEPC Limited, formerly known as Shriram EPC Limited, is an established EPC company offering turnkey solutions across Water & Wastewater, Roads, Industrial Infrastructure, and Mining. The company specializes in the design, procurement, construction, and commissioning of large-scale infrastructure projects across India, serving Central and State Government agencies.

In terms of historical performance, the Company reported Total Income of ₹ 1,085.8 Cr in FY26, with an EBITDA of ₹ 108.9 Cr and a Net Profit of ₹ 53.5 Cr. In contrast, total income for FY25 was ₹ 646.0 Cr, against which the net profit increased more than double in FY26.

SEPC Stock Price Movement​

As of 11:00 AM, shares of SEPC Limited are slipping by 3.28% in live trading, currently priced at ₹5.89 after a recent drop of ₹0.20. The stock has seen robust activity with over 14.77 million shares traded today as the equity navigates within an intraday range stretching from a low of ₹5.10 to a high of ₹5.99.