Rs 1,024-crore market cap, Rs 10,000-crore order book: This penny stock jumps 11% after SAIL deal

Shares of SEPC Limited rallied as much as 10.95% on Friday, to hit an intraday high of Rs 5.47 on the NSE after the company signed an Rs 854.57-crore contract with Steel Authority of India Limited (SAIL) for work at the IISCO Steel Plant in Burnpur, West Bengal.

The stock pared some of its gains but continued to trade higher during the session. At 1:49 PM, SEPC shares were trading at Rs 5.31, up 7.71% from their previous close of Rs 4.93.

The latest contract comes as SEPC's consolidated order book has crossed Rs 10,000 crore, nearly 10 times its market capitalisation of Rs 1,023.56 crore on the NSE.


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SEPC signs Rs 855-crore contract with SAIL

SEPC announced that it had formally signed a contract agreement with SAIL for the Pellet Plant balance-of-plant (BOP) package, including civil and structural works, at SAIL-IISCO Steel Plant (ISP) in Burnpur, West Bengal. The agreement was signed on October 8, 2026, following a Letter of Acceptance received from SAIL-ISP in August 2026.

The project forms part of SAIL-IISCO Steel Plant's 4.08-million-tonne-per-annum (MTPA) crude steel expansion programme. It will be executed on a divisible turnkey basis, with the facilities scheduled for commissioning within 32 months from the contract's effective date of September 3, 2026. The total contract price stands at Rs 951.60 crore. After accounting for Rs 97.04 crore in input tax credit to be passed on to SAIL, the net contract value is Rs 854.57 crore.

The agreement was signed at SAIL-IISCO Steel Plant in Burnpur by Praveen Kumar, Executive Director (Projects) at SAIL-ISP, and Venkataramani Jaiganesh, Managing Director of SEPC, in the presence of senior officials from the steel plant. M. N. Dastur & Company Pvt. Ltd. is the engineering and construction management consultant for the project, while MECON Limited is responsible for procurement and contract engineering services.

SEPC's order book crosses Rs 10,000 crore

SEPC's consolidated order book has crossed Rs 10,000 crore, equivalent to more than nine times the company's FY26 total income of Rs 1,085.8 crore. The milestone highlights the scale of SEPC's project pipeline and provides potential multi-year revenue visibility. The SAIL contract also strengthens SEPC's presence in industrial infrastructure and engineering, procurement and construction (EPC) projects, particularly in the steel sector.

What did SEPC's management say?

Commenting on the development, SEPC Managing Director Venkataramani Jaiganesh said, “The signing of the Contract Agreement with SAIL-IISCO Steel Plant formalises one of the most significant industrial projects in our portfolio. We thank the SAIL-ISP leadership for their continued confidence in SEPC.”

“The Burnpur expansion is an important part of India's steel capacity growth, and we are proud to contribute to it. Our focus now is on execution, and we are committed to delivering this package within the stipulated timeline with the highest standards of quality and safety. Crossing Rs 10,000 Crore in consolidated order book is a defining milestone for SEPC. It gives us strong revenue visibility for the coming years and the confidence to pursue larger and more complex opportunities across the industrial and infrastructure sectors.”

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