SEPC Limited (NSE:SEPC) disclosed on 6 August 2026, via a Regulation 30 filing, that it has received a Letter of Acceptance from Steel Authority of India Limited's IISCO Steel Plant, Burnpur, for a Pellet Plant BOP contract valued at Rs 854.57 crore, net of Input Tax Credit.
Key Highlights
- SEPC received a Letter of Acceptance from SAIL-IISCO Steel Plant, Burnpur, for Pellet Plant BOP including Civil and Structural Works under Pellet Package-2, valued at Rs 854.57 crore net of Input Tax Credit.
- The contract covers Balance of Plant civil and structural execution supporting SAIL's 4.08 MTPA Crude Steel Expansion Project at its Burnpur facility, with a completion period of 32 months.
- In FY26, SEPC reported Total Income of Rs 1,085.8 crore, EBITDA of Rs 108.9 crore, and Net Profit of Rs 53.5 crore, more than double the Net Profit recorded in FY25.
- The filing was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and was submitted simultaneously to NSE and BSE.
About the Company
SEPC Limited (NSE:SEPC | BSE:532945), formerly known as Shriram EPC Limited and headquartered in Chennai, is an EPC company offering turnkey solutions across Water and Wastewater, Roads, Industrial Infrastructure, and Mining sectors. The company designs, procures, constructs, and commissions large infrastructure projects across India for Central and State Government agencies as well as private clients.
Announcement in Detail
SEPC Limited (NSE:SEPC) has secured a Letter of Acceptance from Steel Authority of India Limited (SAIL) through its IISCO Steel Plant (ISP) at Burnpur for the execution of Pellet Plant BOP including Civil and Structural Works, designated as Pellet Package-2. The contract value is Rs 854,56,71,234 (Rs 854.57 crore), explicitly stated as net of Input Tax Credit. The scope of work directly supports SAIL's ongoing 4.08 MTPA Crude Steel expansion programme at the Burnpur plant in West Bengal.
The project carries a contractual execution period of 32 months from the date of the Letter of Acceptance. Managing Director Venkataramani Jaiganesh stated in the press release that the order "reflects the confidence placed in SEPC's engineering expertise and execution capabilities in delivering large-scale industrial infrastructure projects." The filing was submitted to both NSE and BSE on 6 August 2026 under Regulation 30 of the SEBI LODR Regulations, 2015.
Impact on Investors
Investors will note that the Rs 854.57 crore contract represents approximately 78.7% of SEPC's reported Total Income for FY26 (Rs 1,085.8 crore), indicating a material addition to the company's executable order book. The filing shows this is a government-sector counterparty order, as SAIL is a central public sector enterprise, which shareholders will observe may carry different counterparty risk characteristics compared to private sector EPC contracts.
The disclosed 32-month execution window means revenue recognition from this contract would spread across multiple reporting periods. The filing does not disclose any advance payment terms, performance guarantees, or penalty clauses, so investors should review the full contract terms through official exchange disclosures before drawing conclusions on margin or cash-flow impact.
Sector / Market Context
India's steel sector has been expanding capacity to support long-term infrastructure and manufacturing targets. SAIL, as one of India's largest steel producers under government ownership, has been pursuing multi-MTPA expansion programmes across its integrated plants. According to the Ministry of Steel, India's crude steel production capacity is targeted to grow substantially over the current decade, creating sustained demand for industrial EPC services covering civil, structural, and process plant works of the type SEPC is contracted to deliver at Burnpur.