1. At a Glance – The Comeback Kid with Knee Braces
SEPC Ltd is that old engineering uncle at Indian EPC weddings who disappeared for a decade, came back with a new hairstyle, a foreign sponsor, and insists he’s “fit again.” Once called Shriram EPC, now rebranded, recapitalised, and reintroduced by Mark AB, SEPC today sits at a market cap of ~₹1,767 Cr, trading at ₹9.35, barely 0.95x book value, and still giving investors mild PTSD from its past.
Latest Q3 FY26 numbers show ₹341 Cr revenue, ₹15.6 Cr PAT, and EPS of ₹0.08 for the quarter. Sounds decent? Sure. But zoom out and you’ll see a company that has diluted equity like chai-water, survived debt hell, and is now living on working capital injections, rights issues, and order-book headlines.
Returns over the last year? -44%.
Promoter holding? 27.2%, with 34.4% pledged.
ROE? A shy 2.55%.
Debt? Down sharply, but still ₹365 Cr.
Yet… the order book is buzzing, LOIs are raining, and the company just crossed ₹796 Cr revenue in 9M FY26.
So the big question: Is SEPC finally executing projects… or just press releases?
2. Introduction – From Shriram to Rehab to Reboot
SEPC’s story is not a straight line. It’s a zig-zag ECG chart.
In the mid-2010s, this company tried to do everything everywhere — steel plants, water pipelines, mining shafts, power plants, overseas EPC — all funded by borrowed money and optimism. The result?
- Massive losses
- Negative net worth
- ₹1,000+ Cr debt
- Banks as majority shareholders
- And investors filing emotional damage claims
Then came September 2022.
Enter Mark AB Capital Investment LLC, infusing ₹350 Cr equity, replacing promoters, restructuring debt, converting loans into CCDs and NCDs, and basically putting SEPC on corporate life support.
Since then, SEPC has:
- Reduced net debt from ₹973 Cr (FY22) to ₹391
- Cr (FY24)
- Raised multiple rights issues
- Cleaned up P&L optics
- Restarted execution
- And aggressively chased EPC orders like a freelancer chasing Upwork gigs
But scars remain. And execution discipline is still under probation.
So before we clap, let’s actually understand what this company does.
3. Business Model – WTF Do They Even Do?
SEPC is a full-spectrum EPC contractor, meaning they design, engineer, procure, build, commission, and then disappear before warranty calls start.
They operate across two main verticals:
A) Infrastructure EPC
This is the “government-approved headache” segment.
- Drinking water supply projects
- Sewerage & sanitation projects
- Pipe rehabilitation (hello DI pipes drama)
- Roads for MoRTH, urban bodies, PSUs
Clients include Delhi Jal Board, Ahmedabad Urban Development Corporation, etc.
Margins? Thin.
Working capital? Painful.
Payments? Slow like Indian Railways refunds.
B) Industrial EPC
This is where SEPC pretends to be cool.
- Steel Plants
- Bar mills, sinter plants, wire rod mills
- Coke ovens, coal chemical plants
- Completed a 1.2 MTPA steel plant in Oman
- Deep Shaft Mining
- Vertical shafts for coal, copper, gold, manganese
- Recent MOIL order? That’s here.
- Power Plants
- Thermal, wind, biomass (no fancy renewables yet)
- Process Plants
- Cement
- Coal handling
- Cattle feed (yes, even cows are clients)
In short: SEPC is a jack-of-all-EPCs, master of… execution
