SEPC shares climbed sharply on Friday after the engineering and construction company signed a ₹854.57 crore contract with Steel Authority of India Limited (SAIL) for work at the IISCO Steel Plant in Burnpur, West Bengal. The stock touched ₹5.46, rising around 10.5% from its previous close of ₹4.94, before trading at ₹5.28. The company also announced that its consolidated order book had crossed ₹10,000 crore, strengthening its project pipeline.
The agreement, signed on October 8, covers the balance-of-plant package for the steel plant’s pellet facility, including civil and structural works. The project forms part of SAIL-IISCO’s planned expansion to increase crude steel production capacity to 4.08 million tonnes per annum. It will be executed on a divisible turnkey basis, with commissioning scheduled within 32 months from the effective date of September 3, 2026.
The total contract price is ₹951.60 crore, including ₹97.04 crore in input tax credit to be passed on to SAIL, resulting in a net contract value of ₹854.57 crore. SEPC had received the Letter of Acceptance for the project in August.
The company said its order book of more than ₹10,000 crore is over nine times its FY26 total income of ₹1,085.8 crore, offering visibility into future project execution. For FY26, SEPC reported EBITDA of ₹108.9 crore and net profit of ₹53.5 crore, compared with total income of ₹646 crore in FY25.
Formerly known as Shriram EPC, SEPC operates across water and wastewater management, roads, industrial infrastructure and mining. While the new contract adds to its project pipeline, investors will be watching execution timelines, revenue conversion, margins and cash flows to assess how effectively the company turns its order book into financial growth.
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