SEPC Limited secures Rs 673.32 crore order from SAIL for steel plant expansion

What SEPC announced

On 15 June 2026, SEPC Limited (formerly Shriram EPC) disclosed that it has been awarded a major engineering, procurement and construction (EPC) contract by Steel Authority of India Limited (SAIL) for the IISCO Steel Plant (ISP) at Burnpur. The order, valued at Rs 673.32 crore (net of taxes), is part of SAIL’s 4.08 million tonnes per annum (MTPA) crude steel expansion project. The announcement was made through a press release filed with the National Stock Exchange under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.

"This order from SAIL’s IISCO Steel Plant represents a significant milestone for SEPC and highlights the confidence that leading public sector enterprises place in our engineering expertise and project execution capabilities," said Mr. Venkataramani Jaiganesh, Managing Director of SEPC.

The contract adds two distinct packages to SEPC’s order book, extending its execution horizon by roughly 30‑33 months and reinforcing its foothold in the industrial infrastructure segment.

Order composition and financial terms

The award is split into two key packages:

• Coke Oven BOP (Balance of Plant) – Package COB‑3: Excluding civil and structural works, this package is valued at Rs 296.77 crore.
• Sinter Plant BOP – Package SP‑2: Including civil and structural works, this package carries a value of Rs 376.56 crore.

Together, the two packages sum to the headline contract value of Rs 673.32 crore. The agreement is net of taxes, and the execution timeline is projected at 30 to 33 months from the commencement date, providing SEPC with a multi‑year revenue stream.

Financial backdrop – FY26 performance

SEPC’s FY26 results, disclosed in the same press release, illustrate a strong growth trajectory that underpins the company’s capacity to take on large‑scale projects. The firm reported:

• Total income of Rs 1,085.8 crore, up from Rs 646.0 crore in FY25.
• EBITDA of Rs 108.9 crore.
• Net profit of Rs 53.5 crore, more than double the FY25 figure.

The surge in revenue and profitability reflects SEPC’s expanding order book and successful execution of prior contracts across water‑&‑wastewater, roads, industrial infrastructure and mining sectors. The new SAIL order further diversifies its project mix and aligns with the company’s strategic focus on large industrial and process infrastructure.

Key facts at a glance

Why this matters for investors

The contract adds a high‑value, long‑duration project to SEPC’s order book, which is a material driver of future revenue visibility. Because the order is an EPC execution contract rather than a financing arrangement, it does not dilute existing shareholders. The 30‑33 month execution window aligns with SEPC’s stated aim of building a stable pipeline of large‑scale industrial projects, reducing reliance on shorter, lower‑margin assignments.

From a sector perspective, the award comes at a time when India’s steel industry is undergoing capacity expansion driven by infrastructure development and manufacturing growth. Securing work from a marquee public‑sector client like SAIL signals market confidence in SEPC’s technical capabilities and may help the company win additional contracts in the steel and heavy‑industry space.

Investors should note that the filing does not mention any immediate capital raising, change in shareholding, or regulatory approvals pending for the order. The primary impact is operational – the company will need to mobilise resources, manage supply‑chain logistics and adhere to the stipulated timeline to realise the contracted revenue.

Conclusion

SEPC Limited’s Rs 673.32 crore order from SAIL’s IISCO Steel Plant represents a significant addition to its order book, extending revenue visibility for the next 2½ to 3 years. The contract, split between coke oven and sinter plant balance‑of‑plant packages, aligns with SEPC’s strategic focus on large industrial infrastructure projects and comes on the back of a strong FY26 financial performance. While the order enhances the company’s pipeline, execution risk and sector dynamics remain the primary factors investors will monitor as the project progresses.