SEPC has signed a contract worth ₹854.57 crore with Steel Authority of India Limited (SAIL) for the Pellet Plant BOP, including civil and structural works at the SAIL-IISCO Steel Plant in Burnpur, West Bengal. This agreement significantly increases SEPC's consolidated order book to over ₹10,000 crore, providing strong revenue visibility for the coming years.
- SEPC's order book now exceeds ₹10,000 crore, more than nine times its FY26 income.
- The contract is part of SAIL-ISP's 4.08 MTPA crude steel expansion at Burnpur.
- The project will be completed within 32 months from September 3, 2026.
- SEPC shares rose 7.71% to ₹5.31 after the announcement despite a 47% decline since the start of the year.
What is the significance of SEPC's new contract with SAIL-IISCO?
The contract, valued at ₹854.57 crore, involves the Pellet Plant Balance of Plant (BOP) works at the SAIL-IISCO Steel Plant. It is a major industrial project that forms part of SAIL-ISP's plan to expand crude steel production capacity by 4.08 million tonnes per annum at Burnpur. This agreement strengthens SEPC's position in the industrial EPC sector and contributes to India's steel capacity growth.
How does this contract affect SEPC's order book and financial outlook?
With this contract, SEPC's consolidated order book has surpassed ₹10,000 crore, which is over nine times the company's total income for FY26 of ₹1,085.8 crore. This milestone provides SEPC with strong multi-year revenue visibility and confidence to pursue larger and more complex projects in industrial and infrastructure sectors.
What are the project timelines and execution plans?
The Pellet Plant Package-2 contract will be executed on a divisible turnkey basis. SEPC plans to commission the facilities within 32 months from the contract's effective date, September 3, 2026. The company is focused on timely execution and delivering the project within the stipulated timeline.
How has SEPC's stock performed recently?
Following the contract announcement, SEPC shares rose 7.71% to ₹5.31 on the National Stock Exchange. However, the stock has declined 47% since the beginning of the year. Over the past six months, the share price has dropped 30%. The stock reached a 52-week high of ₹11.98 in October 2025 and a low of ₹4.65 in March 2026.
What is SEPC's recent financial performance?
SEPC reported a consolidated net loss of ₹11 crore in the first quarter of the 2026-27 financial year, compared to a net profit of ₹16.5 crore in the same period last year. Its EBITDA fell 37% year-over-year to ₹17 crore in Q2 FY27 from ₹27 crore in Q2 FY26. Despite these challenges, the company’s large order book provides optimism for future revenue growth.
Frequently Asked Questions
Q: What is the value of the contract SEPC signed with SAIL-IISCO?
A: The contract is valued at ₹854.57 crore after accounting for input tax credits.
Q: How long will the project take to complete?
A: The project is expected to be commissioned within 32 months from September 3, 2026.
Q: How does this contract impact SEPC's business?
A: It significantly increases SEPC's order book, providing strong revenue visibility and enhancing its presence in large-scale industrial EPC projects.
Q: How has SEPC's stock performed this year?
A: SEPC shares have fallen 47% since the start of the year but rose 7.71% after the contract announcement.
