SEPC shares jump after settling dispute with Hindustan Copper for ₹30.45 Cr and new work order

Synopsis: SEPC settles arbitration dispute with Hindustan Copper, securing Rs. 30.45 crore payment and receives Rs. 72.55 crore supplementary work order for vertical shaft sinking project. Let’s dive deeper into the deals with HCL.

A leading infrastructure and engineering services company specializing in mining and underground construction has reached a significant milestone with one of India’s major public sector mining enterprises. The firm has successfully resolved a long-standing legal dispute through arbitration settlement simultaneously winning a new supplementary contract for vertical shaft sinking work, bringing total benefits to approximately Rs. 103 crore.

SEPC Limited’s stock, with a market capitalisation of Rs. 1,694 crores, rose to Rs. 8.98, hitting a high of up to 1.81 percent from its previous closing price of Rs. 8.82. However, the stock over the past year has given a negative return of 60.3 percent.

Order & Dispute Deal

SEPC Limited has successfully resolved all disputes with Hindustan Copper Limited (HCL) through a settlement deed. As part of the agreement, SEPC will receive Rs. 30.45 crore as full and final settlement, which closes all pending arbitration matters between the two companies. This settlement brings immediate cash flow and removes the legal uncertainty that was holding up value for the company.

Additionally, HCL has issued a supplementary work order worth Rs. 72.55 crore for the ongoing vertical shaft sinking project. This new order significantly increases the project’s overall value and strengthens SEPC’s position in the mining infrastructure segment. The expanded project scope demonstrates HCL’s confidence in SEPC’s capabilities to handle complex underground mining work.

This development is important for SEPC as it provides immediate liquidity, expands the project pipeline, and boosts the company’s mining EPC portfolio. The settlement eliminates prolonged legal battles and administrative costs, while the new work order supports near-term revenue and execution momentum for FY26. Overall, this positions SEPC as a key EPC partner in India’s mining infrastructure sector.

Q2 Financial Highlights

The company reported revenue of Rs. 237.42 crore in Q2FY26, marking a 38.86% YoY growth from Rs. 170.99 crore in Q2FY25 and a 17.37% QoQ increase from Rs. 202.28 crore in Q1FY26. This sequential and annual growth demonstrates strong momentum in the company’s top-line performance, driven by expanding operations and market demand.

However, profit stood at Rs. 8.30 crore in Q2FY26, up 262.45% YoY from Rs. 2.29 crore in Q2FY25, but declined 49.85% QoQ from Rs. 16.55 crore in Q1FY26. Over the past three years, the company has delivered a sales CAGR of 22% and profit CAGR of 29%, though ROE showed a negative 3-year CAGR of -2%, indicating pressure on return on equity despite robust profit growth.

Written By Fazal Ul Vahab C H

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