SEPC Reports Neutral Financial Impact with Indemnity Protection Amid Court Audit
SEPC Limited has issued an official press release confirming neutral financial impact from the Madras High Court's interim order for asset attachment and PWC audit. The company's financial exposure is protected by a 2015 indemnity agreement with co-respondent Twarit Consultancy Services, which has already paid ₹164.50 crore and covers all litigation liabilities. Despite the ongoing legal proceedings, SEPC continues strong operational performance with Q3 FY26 nine-month revenue of ₹796.89 crore exceeding full-year FY25 results.
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SEPC Limited has officially confirmed neutral financial impact from the Madras High Court's interim order, citing comprehensive indemnity protection from co-respondent Twarit Consultancy Services Private Ltd. The company issued a press release acknowledging the court-mandated audit while emphasizing its protected financial position in the ongoing litigation.
Court Orders and Asset Attachment Details
The Madras High Court, in its order dated February 19, 2026, disposed of execution petitions and ordered enforcement of the foreign arbitral award originally passed by the Singapore International Arbitration Centre on January 7, 2021. The court has mandated interim attachment of trade receivables while appointing PriceWaterhouseCoopers to conduct a comprehensive financial review.
| Parameter: | Amount |
|---|---|
| Amount Due to Award Holder: | ₹154.63 crore |
| Total Trade Receivables: | ₹449.62 crore |
| Attachment Percentage: | Approximately 34.4% |
| Previous Payment by Co-respondent: | ₹164.50 crore |
| Financial Impact Assessment: | Neutral |
Indemnity Protection Framework
SEPC's financial exposure is mitigated by a 2015 indemnity agreement with co-respondent Twarit Consultancy Services Private Ltd. Under this contract, Twarit bears legal responsibility for covering all liabilities and costs associated with the litigation. The co-respondent has already made a significant payment of ₹164.50 crore in accordance with the indemnity agreement terms.
PWC Audit Scope and Timeline
PriceWaterhouseCoopers, appointed by the court, will conduct a focused review to determine amounts owed to banks and financial institutions and assess assets available with SEPC Limited. The audit scope includes:
- Identifying exact amounts owed to banks and financial institutions
- Determining payment dates for these obligations
- Assessing crystallized liability as on execution petition dates
- Identifying actual assets belonging to the company
The audit report is scheduled for submission on March 23, 2026, with professional expenses borne by the award holder.
Company's Current Financial Performance
Despite the ongoing litigation, SEPC continues demonstrating strong operational performance. In Q3 FY26, the company reported consolidated revenue of ₹796.89 crore, EBITDA of ₹83.60 crore, and net profit of ₹39.81 crore for nine months ended December 2025, surpassing full-year FY25 figures of ₹597.70 crore revenue, ₹98.90 crore EBITDA, and ₹24.80 crore net profit.
Litigation Background and Next Steps
The dispute traces back to an original 2010 agreement to which SEPC was not a party, with the company becoming involved through a 2015 agreement. The matter progressed through Singapore arbitral proceedings before reaching Indian court enforcement stages. SEPC's consortium of lenders has approached the court to protect their priority rights as secured creditors, while the company maintains full cooperation with the audit process to ensure swift resolution and eventual release of attached assets.
Historical Stock Returns for SEPC
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.19% | -24.39% | -41.86% | -62.37% | -67.11% | +28.05% |
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