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SEPC Ltd, a leading engineering, procurement, and construction (EPC) firm, has posted a consolidated net profit of ₹165.5 million for the quarter ended June 2025, backed by a robust operational revenue of ₹2.02 billion. The results mark a continuation of the company’s turnaround journey, driven by disciplined execution, improved project margins, and strategic cost control.
Here’s a comprehensive breakdown of SEPC’s Q1 FY26 performance and its implications for stakeholders and the broader infrastructure sector.
Key highlights:
1. Consolidated revenue from operations reached ₹2.02 billion, reflecting a year-on-year growth of over 22 percent.
2. Net profit after tax stood at ₹165.5 million, up significantly from ₹80.8 million in the same quarter last year.
3. EBITDA rose to ₹265.9 million, a 73 percent increase compared to the previous year’s ₹153.6 million.
4. Earnings per share improved to ₹0.06, up from ₹0.04 in June 2024, signaling stronger shareholder returns.
Revenue performance and business momentum:
SEPC’s revenue growth was fueled by strong execution across its core EPC verticals, including water infrastructure, municipal services, and industrial projects.
- Water and wastewater treatment projects contributed the largest share of revenue, supported by government contracts and urban development initiatives.
- Industrial EPC orders saw steady progress, particularly in metallurgy and process engineering segments.
- The company’s order book remains healthy, with new wins in Tamil Nadu, Gujarat, and Odisha adding visibility for the next 12–18 months.
Profitability and margin expansion:
The ₹165.5 million net profit reflects SEPC’s operational discipline and improved project-level margins.
- Cost optimization measures, including vendor renegotiations and lean project management, helped contain overheads.
- Finance costs remained stable, while depreciation expenses were marginally lower due to asset-light execution models.
- Other income contributed positively to the bottom line, though the bulk of profit came from core operations.
Operational efficiency and financial health:
SEPC’s focus on execution efficiency and working capital management has led to notable improvements in its financial metrics.
- Inventory turnover improved, aided by better procurement planning and project scheduling.
- Receivables days reduced, reflecting stronger collection discipline and client engagement.
- The company has continued to reduce its debt burden, with long-term liabilities down from previous quarters.
Strategic initiatives and growth outlook:
SEPC is actively pursuing strategic initiatives to expand its footprint and enhance competitiveness.
- The company is investing in digital project monitoring tools to improve transparency and reduce execution delays.
- Strategic partnerships with global engineering firms are being explored to bid for larger, multi-state infrastructure contracts.
- SEPC is also evaluating entry into renewable energy EPC, particularly solar water pumping and hybrid grid systems.
Market sentiment and investor response:
SEPC’s stock has shown resilience, with a 10.83 percent return over the past six months and nearly 70 percent gain over the last year. Investors are responding positively to the company’s consistent profitability and operational improvements.
- Analysts view SEPC as a turnaround story with strong fundamentals and improving return ratios.
- Promoter holding remains stable, though concerns persist around pledged shares and low return on equity.
Conclusion:
SEPC’s June quarter results underscore its steady progress in rebuilding profitability and strengthening its position in the EPC space. With a robust order book, disciplined execution, and strategic investments underway, the company is well-positioned to capitalize on India’s infrastructure growth story. The next few quarters will be crucial in sustaining momentum and unlocking shareholder value.
Sources: Moneycontrol, Screener India, SEPC Investor Presentation
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