SEPC Reports Quarter Two Financial Results for FY 2026; Standalone Performance Review Completed

SEPC Reports Quarter Two Financial Results for FY 2026; Standalone Performance Review Completed​

SEPC Limited has announced its unaudited financial results for the quarter ended June 30, 2026. The company released both consolidated and standalone financial statements, which were reviewed and approved by the Board of Directors on August 11, 2026, and are available to stakeholders.

The results reflect a period characterized by various operational developments across SEPC's global operations.

Consolidated Financial Performance​

The consolidated unaudited results show total income from operations reaching Rs 78,247.96 lakhs for the quarter ended June 30, 2026. The company reported a net loss of (Rs 1,105.09) lakhs in the current quarter.

The financial health across previous periods is detailed below:


The consolidated results include the performance of SEPC and its various joint operations, which include Mokul Shriram EPC JV, Shriram EPC Eurotech Environmental Pvt Ltd - JV, SEPC DRS ITPL JV, SEPC-Furlong JV, and SEPC-Archi JV.

Standalone Financial Results​

The standalone unaudited results for the quarter ended June 30, 2026 show Total Income from Operations at Rs 12,752.36 lakhs. The company registered a loss of (Rs 1,816.60) lakhs after tax for the period.

Key figures in lakhs:

Management and Audit Observations​

The company's financial results are prepared on a going concern basis, considering several positive developments such as the implementation of a resolution plan, equity infusion by investors, completion of the Rights issue, changes in management, and additional funding for working capital.

Key points highlighted by the company and the auditor's review include:

• Contingent Liabilities: The results include contingent liability matters related to an international arbitration proceeding initiated by GPE (Incia) Limited and others before the Singapore International Arbitration Centre (SIAC). While SEPC was awarded damages, management has noted that a portion of the payment obligation is being discharged through an inter se arrangement with TCPL.
• Working Capital: The company reported high overdue balances in Non-Current Contract Assets (Rs 9,037.98 lakhs as at June 30, 2026) and Non-Current Trade Receivables (Rs 5,742.57 lakhs as on June 30, 2026), relating to projects stalled due to regulatory approval delays or disputes.
• DTA: SEPC recognized a Deferred Tax Asset (DTA) of Rs 25,765.77 lakhs as at June 30, 2026, based on carried forward business losses. The auditors qualified the matter concerning the sufficiency of audit evidence to corroborate management's assessment regarding future taxable profits available for utilizing these losses.
• Corporate Transactions: SEPC's Board of Directors approved the proposed acquisition of 90% of the equity share capital of Avenir International Engineers and Consultants LLC, Abu Dhabi, via a share swap, which received shareholder approval on August 5, 2026.

Other Operational Updates​

The company confirmed that it is compliant with basic wages criteria under the New Labour Codes for its own employees and is evaluating potential impacts concerning the contract workforce.

SEPC Stock Price Movement​

Shares of SEPC Limited slipped by 2.56% on Tuesday, settling at ₹6.09 after shedding ₹0.16 from the previous closing price. The stock posted a total traded volume of 9.27 million shares during the session.