Engineering firm SEPC Ltd has secured a ₹673.32 crore contract from Steel Authority of India Ltd (SAIL) for its IISCO steel plant expansion project in West Bengal, with the stock surging 13% following the announcement. According to an exchange filing, the company received a Letter of Acceptance (LoA) from SAIL - IISCO Steel Plant (ISP), Burnpur, for works related to the 4.08 MTPA crude steel expansion project. The projects, with an aggregate contract value of ₹673 crore (net of taxes), are scheduled for execution over a period of 30 to 33 months, representing a significant milestone for SEPC following its restructuring phase as it demonstrates the company's capability to handle large-scale brownfield and greenfield expansions in the core steel sector.
The contract consists of two main packages with different execution requirements. The Coke Oven Balance of Plant package is valued at ₹296.77 crore and excludes civil and structural works. The Sinter Plant Balance of Plant package is worth ₹376.56 crore and includes civil and structural works. As reported in the filing, the Coke Oven package requires 30 months for execution from the effective date of the contract, while the Sinter Plant package has a 33-month execution timeline. The effective date will be determined as either the contract signing date or 30 days from the LoA, whichever is earlier. The focus on Coke Oven and Sinter plants indicates a niche technical competency that differentiates SEPC from general infrastructure players, with these specialized packages offering higher margins compared to standard civil EPC work.
Venkataramani Jaiganesh, Managing Director of SEPC, emphasized that this order from SAIL's IISCO Steel Plant represents a significant milestone for the company and highlights the confidence that leading public sector enterprises place in their engineering expertise and project execution capabilities. The project aligns well with SEPC's strategy of expanding their footprint in large industrial and process infrastructure projects, as India's steel industry enters a phase of sustained capacity expansion driven by infrastructure development, manufacturing growth, and the nation's long-term economic ambitions. The ₹673 crore order significantly improves SEPC's order book-to-market cap ratio and provides multi-quarter revenue visibility for the industrial division, strengthening the company's PSU client portfolio and reducing payment risk while enhancing credit profile.
The contract award comes as SEPC reported robust financial results for the fourth quarter, with the company's consolidated net profit jumping 37.03% to ₹13.73 crore on a 132.45% surge in revenue from operations to ₹273.83 crore in Q4 FY26 over Q4 FY25. This performance demonstrates the company's ability to capitalize on its growing order book and strengthening execution capabilities. The addition of this major contract from SAIL further enhances SEPC's revenue predictability for the next 18-24 months, positioning the company to capture a larger share of the heavy engineering market as the Indian steel industry undergoes massive expansion to reach the National Steel Policy target of 300 MTPA capacity by 2030.
