SEPC lands ₹673 cr SAIL order, its largest ever
The contract equals 62% of FY26 revenue and could be a lifeline for a company with a 'D' credit rating and ongoing liquidity stress.
— 3 earlier stories on SEPC Ltd. →What's new
- SEPC receives LOI from SAIL for two packages worth ₹673.32 crore at IISCO Steel Plant in Burnpur.
- Coke Oven package: ₹296.77 cr (30 months); Sinter Plant package: ₹376.56 cr (33 months).
- Order book swells to ~₹2,500 cr; single largest contract in company history.
Why this matters
For a micro-cap in severe liquidity distress with a 'D' rating, this order from a blue-chip PSU client is a rare shot of credibility. At 62% of FY26 revenue, it could turn cash flows around, if executed without delays. But the company's record on execution and audit qualifications means the real test lies ahead.
What we're watching
- Progress on mobilisation and any vendor advance payments.
- Whether the order helps resolve the ₹281.88 cr deferred tax asset audit issue.
- SAIL's payment terms and SEPC's ability to fund the project.
The full read
SEPC has won a ₹673.32 crore order from SAIL for packages at the IISCO Steel Plant expansion in Burnpur. It's the single largest contract in the company's history, and the second big win this year after a ₹521.46 crore highway order in March. The Coke Oven package (₹296.77 crore, 30 months) and Sinter Plant package (₹376.56 crore, 33 months) together add 62% of FY26 revenue to the order book, which now sits at roughly ₹2,500 crore. For a micro-cap with a 'D' credit rating, severe liquidity strain, and a qualified audit on ₹281.88 crore in deferred tax assets, this is a lifeline, but only if SEPC can execute. The open question isn't whether this order is big; it's whether SEPC can deliver without the cash crunch worsening.
Questions answered
- How big is this order relative to SEPC's size?
- The ₹673.32 crore order is roughly 53.6% of SEPC's ₹1,257 crore market cap and 62% of its FY26 revenue of ₹1,085.84 crore, making it the largest contract in the company's history.
- What does the order involve?
- SEPC will execute two packages at SAIL's IISCO Steel Plant in Burnpur: a Coke Oven Balance of Plant (excl. civil and structural) worth ₹296.77 crore and a Sinter Plant BOP (including civil and structural) worth ₹376.56 crore.
- How will this affect SEPC's liquidity position?
- The order could provide a critical cash flow lifeline if executed on time. However, SEPC has a 'D' credit rating and ongoing legal proceedings, so funding the project upfront may remain challenging.
- Is this a reversal of SEPC's recent order loss?
- Not exactly. SEPC recently lost a ₹230 crore order from MOIL. This SAIL win more than compensates in value but does not automatically fix the execution and audit issues flagged in prior coverage.
- What is the background of SEPC's financials?
- SEPC's latest quarterly sales were ₹341 crore with a net profit of ₹15 crore. Its FY26 audit was qualified on ₹281.88 crore in deferred tax assets. The company has a debt/equity of 0.24 and ROE of 1.6%.
SEPC Ltd.
Latest quarter · Dec 2025
Strength & growth
Story so far
All notes on SEPC →- 12 Jun 2026 · 5:44 PM IST SEPC lands ₹673 cr SAIL order, its largest ever
- 17d ago SEPC confirms Q4 and FY26 results in press release
- 18d ago SEPC's FY26 audit is qualified on ₹281.88 cr in deferred tax assets
- 21d ago SEPC loses ₹230 cr order as MOIL cancels contract