SEPC Limited has received a significant court order from the Madras High Court regarding the enforcement of a foreign arbitral award, resulting in interim attachment of substantial trade receivables and appointment of an independent auditor to examine the company's financial affairs.

Court Orders Foreign Award Enforcement

The Madras High Court, in its order dated February 19, 2026, disposed of execution petitions E.P. Nos. 7 of 2024, 91 & 92 of 2023, and 15 & 16 of 2025, holding that the foreign award in favor of the petitioners is enforceable in India. The original arbitral award was passed by the Singapore International Arbitration Centre (SIAC) on January 7, 2021, with an appeal dismissal by the Singapore International Commercial Court on December 24, 2021.

Interim Asset Attachment Order

The court has ordered interim attachment of trade receivables to address the outstanding award amount:

This attachment will continue until the court receives the audit report from the appointed firm. The court noted that even though this order will impact JD2 (SEPC Limited), it will not bring their entire operations to a standstill as only a portion of total trade receivables has been attached.

Independent Audit Appointment

The court has appointed Mr. Puneet Garkhel of PriceWaterhouseCoopers to conduct a comprehensive audit of SEPC Limited's affairs. 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

Required Documentation Access

SEPC Limited must provide the audit firm access to critical documents:

• Agreements with banks and financial institutions
• Details of all bank accounts owned by the company
• Detailed audited financial statements for FY ending March 31, 2025
• Unaudited financial data as of current date
• Any other information validly required by the audit firm

Background and Court Proceedings

The case stems from alleged violations related to not honoring payment terms and conditions of Share Purchase Agreements dated September 28, 2015, and Letter Agreement dated September 28, 2015. The Madras High Court initially held the foreign award enforceable as a decree on January 5, 2023.

During the proceedings, the Supreme Court directed respondents to deposit Rs.125 crores along with interest, and petitioners were permitted to withdraw Rs.39.50 crores along with interest during August 2025. The court expressed dissatisfaction with SEPC's explanations regarding discrepancies between its public financial representations and court submissions.

Financial Impact and Timeline

The professional expenses for the audit will be borne by the award holder. The court has scheduled the next hearing for March 23, 2026, for filing the audit report. The company received the court order on February 27, 2026, which was uploaded on February 23, 2026, following the hearing held on February 19, 2026.

The court emphasized that this interim order aims to safeguard the award holder's interests while ascertaining the actual state of affairs through the independent audit, noting that previous pressure from the Apex Court had resulted in respondents arranging substantial payments within short timeframes.

SEPC Limited has achieved a significant milestone with its consolidated order book reaching a record ₹10,455 crore as of December 31, 2025, positioning the engineering, procurement and construction (EPC) company for sustained multi-year revenue growth across diversified infrastructure segments.

Record Order Book Expansion Drives Growth Trajectory

The company's consolidated order book of ₹10,455 crore represents a strategic expansion across core infrastructure verticals. On a standalone basis, excluding SEPC FZE, the order book stands at ₹7,255 crore, marking a substantial increase from ₹4,501 crore as of March 31, 2025. This growth within nine months highlights SEPC's accelerated order conversion cycle and strengthening market credibility.

Diversified Order Portfolio Across Key Sectors

The standalone order book of ₹7,255 crore is strategically diversified across structurally supported sectors, with mining and construction contributing over 77% of the total portfolio.

Strong Q3 FY26 Financial Performance

SEPC demonstrated robust operational momentum in Q3 FY26, with consolidated revenue reaching ₹340.97 crore compared to ₹133.04 crore in Q3 FY25, representing a 156.35% year-over-year growth. The company reported EBITDA of ₹29.66 crore and net profit of ₹14.96 crore for the quarter.

Nine-Month Performance Exceeds Full-Year FY25 Results

For the nine months ended December 2025, SEPC reported consolidated revenue of ₹796.89 crore, EBITDA of ₹83.60 crore, and net profit of ₹39.81 crore, surpassing the company's full-year FY25 revenue of ₹597.7 crore, EBITDA of ₹98.9 crore, and net profit of ₹24.8 crore.

Geographic Distribution and Market Presence

The consolidated order book reflects a balanced geographic distribution with domestic projects accounting for approximately 48% at ₹5,055 crore, while international operations through SEPC and SEPC FZE contribute ₹2,200 crore (21%) and ₹3,200 crore (31%) respectively. This diversification provides the company with exposure to India's infrastructure growth while maintaining international execution capabilities.

According to Managing Director Venkataramani Jaiganesh, the strong order momentum reflects broader infrastructure opportunities and the company's disciplined approach to project selection. The expanded order book enhances revenue visibility and positions SEPC for sustained growth across its diversified infrastructure segments, with the company focusing on efficient execution and prudent financial management.