This small-cap stock rallies 11% on ₹442-cr order win; details here

SEPC shares rose 11 per cent after the company received an order worth ₹442.8 crore from the water resources department in Delhi

Shares of SEPC rose over 11 per cent on Thursday after the company received an order worth ₹442.8 crore from the water resources department in Delhi. 

 

The small-cap civil construction stock rose as much as 11.32 per cent during the day to ₹13.4 per share, the biggest intraday rise since June 11 this year. The stock pared gains to trade 9 per cent higher at ₹13.2 apiece, compared to a 0.33 per cent advance in Nifty 50 as of 11:51 AM. 

 

Shares of the company rose to the highest level since July 21 and currently trade at 30 times the average 22-day trading volume, according to Bloomberg. The counter has fallen 32 per cent this year, compared to a 7.5 per cent advance in the benchmark Nifty 50. SEPC has a total market capitalisation of ₹2,549.23 crore. 

 

SEPC order win

The company has received a work allocation order worth ₹442.8 crore from the Chief Engineer, Irrigation, Generation, Water Resources Department, Delhi, for the 'Jamaniyan to Kakrait Gangajal Uvah Irrigation Scheme' under the Zamanian Pump Canal Division, Mohania, Kaimur district. The project, part of the Pragati Yatra initiative, will be executed over 24 months, the company said in an exchange filing on Thursday.  

SEPC Q1 results  

The company’s consolidated net profit more than doubled to ₹16.55 crore in Q1 FY26, up 104.8 per cent from ₹8.08 crore a year earlier. Revenue from operations rose 15 per cent year-on-year to ₹202.28 crore from ₹175.82 crore.

 

Profit before tax grew 50.2 per cent to ₹19.05 crore, supported by lower finance costs. Ebitda increased 11.9 per cent to ₹298 crore, though margins slipped to 14.6 per cent from 14.9 per cent in Q1 FY25. 

 

Total expenses rose 11.6 per cent to ₹184.75 crore, driven by higher material costs at ₹157.87 crore (up 18.2 per cent) and employee expenses at ₹8.12 crore (up 6.3 per cent), while finance costs declined 24.7 per cent to ₹9.49 crore.

 

SEPC, founded in June 2000, is among the leading providers of integrated Engineering, Procurement, and Construction (EPC) services. The company engages in delivering end-to-end solutions across a wide range of sectors, including water, infrastructure, metallurgy, and process industries. 

 

SEPC offers multidisciplinary services that cover design, engineering, procurement, construction, commissioning, and project management.