Synopsis:
A small-cap company secured a contract to serve as the Service Provider for developing the new civil enclave at Bihta Airport in Bihar, the news led the small cap stock to surge by more than 4 percent.
On Monday, a small cap company was in the spotlight soon after the company went to BSE to announce that they have been awarded a contract to serve as the Service Provider for developing the new civil enclave at Bihta Airport in Bihar. In this article we will dive deeper to know about this more. With a market cap of Rs 1,685 Cr SEPC Ltd saw its stock hit an intraday high of Rs 9.17, which is 4.2 percent higher than the previous close of Rs 8.8.
What’s the News?
On Monday, SEPC Limited announced that its unincorporated joint venture- SEPC- Furlong JV has secured a Rs 86 crore Letter of Award to serve as the Service Provider for developing the new civil enclave at Bihta Airport in Bihar. This contract has marked a key addition to the ongoing Bihta Airport expansion and civil enclave development plan. The project will proceed as per the formal Service Agreement, which will outline the detailed terms and conditions, which is expected to be shared soon. Moreover, this order has strengthened SEPC’s presence in large-scale infrastructure projects and even highlighted the growing activities in India’s airport development sector.
Previously, the UAE subsidiary of SEPC Limited- SEPC FZE won an AED 35 million (Rs 85 crore) EPC subcontract for an energy infrastructure upgrade at Mubarraz Island under the ADOC framework and is scheduled for completion by December 2026.
Financial Overview
In the latest quarter SEPC Ltd saw a YoY revenue growth of 38.8 percent, going from Rs 170.99 Cr in Q2FY25 to Rs237.42 Cr in Q2FY26, while the QoQ went up by 17.3 percent from Rs 202.28 Cr in Q1FY25.
The YoY Net Profits growth is at 267 percent, going from Rs 2.29 Cr in Q2FY25 to Rs 8.3 Cr in Q2FY26, while the QoQ fell by 49.8 percent from Rs 16.55 Cr in Q1FY25. Another point to highlight is that the company has a 5 year profit CAGR of 38 percent, while the 3 year profit CAGR stands at 29 percent only.
SEPC, formerly known as Shriram EPC Ltd until February 2021, was incorporated in June 2000 and became majority owned by Mark AB following a Rs 350 crore infusion in September 2022. Headquartered in Chennai, SEPC is a leading EPC company delivering end to end solutions across water, process and metallurgy, and infrastructure sectors. The company specializes in design, engineering, procurement, construction, and project management services, positioning itself as a key player in India’s engineering and infrastructure development space.
Written by Adithya Menon
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