SEPC Limited (NSE: SEPC, BSE: 532945), a key player in India’s EPC landscape, has announced its audited standalone financial results for FY25, showcasing a strong improvement in operational efficiency and profitability despite a moderate growth in revenue. The company's focus on international expansion, improved execution capabilities, and a well-diversified project pipeline have positioned it for sustained future growth.

Strong EBITDA Growth and Improved Margins

In FY25, SEPC posted total income of ₹646.02 crore, up from ₹606.56 crore in FY24 — a YoY growth of 6.51%. What stands out, however, is the remarkable 37.14% surge in EBITDA, which reached ₹99.24 crore compared to ₹72.37 crore in the previous year.

• EBITDA margin rose sharply by 343 basis points, up from 11.93% in FY24 to 15.36% in FY25, underscoring enhanced operational efficiencies and project execution quality.

• Net profit increased by 10.91% YoY, climbing to ₹25.15 crore from ₹22.67 crore.

• Net profit margin stood at 3.89%, showing an improvement of 15 basis points over the previous year.

Management noted that while net profit growth remained modest, it was impacted by an exceptional loss and deferred tax adjustment. Nevertheless, the company's overall financial trajectory remains robust.

Focus on International Expansion

Following a change in promoter group, SEPC has redefined its strategy with a strong emphasis on international business development. Leveraging its execution expertise and past track record, the company has already taken tangible steps in its global journey:

• SEPC FZE, a wholly-owned subsidiary based in Sharjah, UAE, has bagged an international EPC order worth ₹75.60 crore from Lauren Engineers & Constructors INC. This contract involves design, construction, supply, and installation of four steel storage tanks.

• Additionally, SEPC has signed a framework agreement for a project in the Kingdom of Saudi Arabia, further cementing its Middle East presence.

These contracts not only signal SEPC’s technical capabilities in high-value international EPC projects but also reflect its commitment to geographical diversification.

Domestic Projects and Order Book Strength

In the domestic market, SEPC continues to maintain a healthy order book of approximately ₹650 crore. This portfolio includes:

• ₹18 crore worth of O&M orders from Bajaj Energy Private Limited, covering multiple power plants in Uttar Pradesh. These projects showcase the company’s service strength and strong client relationships in the Indian energy sector.

• The company also maintains a strong bid pipeline that aligns with India’s infrastructure growth trajectory.

With upcoming government investments in infrastructure, especially in water, roads, industrial, and mining sectors, SEPC is strategically placed to benefit from both public and private capital expenditure cycles.

₹350 Crore Rights Issue: Fueling the Next Phase of Growth

To support its expansion strategy and enhance equity capital, SEPC has announced a ₹350 crore rights issue, offering a strategic opportunity to existing shareholders.

This infusion of capital is expected to:

• Strengthen the company’s balance sheet

• Provide working capital for executing large projects

• Enhance eligibility for bidding high-value international contracts

• Reduce dependency on debt for future capex plans

The rights issue comes at a time when SEPC is accelerating growth across both domestic and international markets, and is seen as a proactive move to build long-term financial resilience.

Strategic Transformation Underway

SEPC's financial report and recent strategic initiatives reflect the company’s ongoing transformation from a domestic EPC player to a globally focused infrastructure solutions provider.

Key strengths contributing to this transformation include:

• Efficient project execution

• Margin-focused operations

• Strong global partnerships and new market penetration

• Robust order book and service diversification

The Middle East foray, in particular, opens up a range of opportunities in water infrastructure, industrial EPC, and oil & gas segments, where demand remains high and execution expertise is valued.

Conclusion

SEPC Limited’s FY25 performance marks a significant turning point in its operational and strategic journey. While revenue growth remains stable, the sharp rise in EBITDA and margin expansion point to superior cost controls and efficient delivery models. The company’s entry into international markets like the UAE and Saudi Arabia, combined with domestic order stability and a major rights issue, indicates confidence in its long-term growth roadmap.

Looking ahead, SEPC is well-positioned to ride India’s infrastructure boom while tapping global opportunities, making it a key company to watch in the EPC segment.

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