SEPC Ltd Q2FY26 – From Debt Drama to ₹442 Cr Irrigation Glory: The Phoenix of the EPC Jungle Finally Sprouts Green Shoots

1. At a Glance

If SEPC Ltd were a movie, Q2FY26 would be its “interval twist” — the part where the underdog suddenly starts making money and the audience can’t decide whether to clap or double-check the numbers. The stock trades at ₹10.2 (Nov 21, 2025), down more than 50% in a year, yet the market cap still flexes a cool ₹1,611 crore. That’s because this Chennai-based EPC warrior just pulled off something dramatic: quarterly sales of ₹237 crore (up 38.8% YoY) and net profit of ₹8.3 crore (up 262% YoY).

After years of restructuring, Mark AB’s ₹350 crore infusion in FY23 wiped out much of the debt monster, leaving net borrowings at ₹365 crore and a healthier debt-to-equity of 0.19. Promoters hold a not-so-impressive 27.4%, but hey — this isn’t a family business anymore; it’s a rehab project that actually seems to be working.

ROCE stands at 6.08%, ROE at 2.55%, and OPM at 8.33%. Numbers that don’t scream luxury, but in the EPC sector, surviving without ICU-level leverage is itself a flex.

The cherry on top? A ₹442.8 crore irrigation project, a Saudi framework of SAR893 million, and rights issue inflows of ₹350 crore. SEPC is no longer begging lenders — it’s quoting tenders.

So the question is: has SEPC finally escaped the ghosts of Shriram EPC, or is this just another engineering illusion?

2. Introduction

Once upon a time in the land of overpromised projects and underpaid contractors, livedShriram EPC Ltd, a company that had more debt than Diwali credit card users. Then came Mark AB Capital, swooping in like a Gulf investor on an Indian discount sale, throwing ₹350 crore into the pit and saying — “ab banega SEPC!”

Since then, the company has been on a glow-up journey that would put Bollywood makeovers to shame. It cleaned up the balance sheet, reduced debt from ₹973 crore (FY22) to ₹391 crore (FY24), rebranded, and even bagged international orders.

Yet, the market still treats it like that one ex who ghosted after borrowing money — skeptical, suspicious, but secretly watching. The EPC space is crowded with alpha dogs like L&T, KEC, and IRCON. SEPC doesn’t have their scale, but it does have hustle.

Its FY24 order book of ₹955 crore and ₹400 crore+ fresh wins in Q1 FY25 suggest business momentum is real. Add to that a Supreme Court case (which it claims won’t cost it a rupee thanks to indemnity) and you’ve got a company that’s gone from “insolvent engineering” to “inconveniently profitable.”

So grab your calculator — and maybe a cup of chai — because SEPC’s financial resurrection is one of the most interesting engineering comebacks in the small-cap world.

3. Business Model – WTF Do They Even Do?

SEPC Ltd is your quintessentialEPC generalist— the company that will build you anything from a water treatment plant to a steel mill to a power plant, as long as you pay on time (please).

The business operates in two broad categories:

1. Infrastructure Division– Think of this as the “paani aur sadak” department. They handle drinking water projects, sewerage, and pipe rehabilitation for civic bodies like Delhi Jal Board and AUDA. Their claim to fame? Being trusted enough to lay the pipes without the project collapsing under paperwork.

2. Industrial EPC– This is where things get spicy. The company executes steel plant components, cement units, deep shaft mines, and even biomass power plants. It once built the main equipment for a 1.2 MTPA steel plant in Oman — a nice little desert flex.

Its international footprint (via Shriram EPC FZE in Sharjah) just got a booster with a 75% stake inAEEIS LLC(Abu Dhabi). They even bagged a contract for a cement project in Uzbekistan worth ₹2,700 crore.

From water to windmills, cement to coal gasification — SEPC is the “Swiggy of EPC.” You name the project, they’ll design it, build it, and pray the client doesn’t default.

4. Financials Overview