SEPC Limited has announced the cancellation of a Letter of Intent (LOI) from Telecommunications Consultants India Limited (TCIL), marking a significant development in the company's recent business activities. The cancellation notice was received on March 03, 2026, just weeks after the company had initially informed exchanges about receiving the LOI.

Background and Timeline

The company had previously notified stock exchanges on February 07, 2026, regarding the receipt of a Letter of Intent from TCIL. However, the business relationship took an unexpected turn when TCIL communicated the cancellation of the same LOI through their letter reference TCIL/DT/DCCS/PSPCL/2026/1 dated March 03, 2026.

Company Response and Next Steps

SEPC Limited has indicated that it is taking appropriate steps regarding this matter. The company has assured stakeholders that it will maintain transparency by keeping stock exchanges informed of any material developments in accordance with SEBI (LODR) Regulations, 2015.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to maintaining proper regulatory compliance and transparency with investors and market participants.

The communication was signed by T Sriraman, Company Secretary & Compliance Officer, and was digitally authenticated on March 03, 2026. This development represents a notable change in the company's recent business prospects and will likely be monitored closely by investors and market analysts.

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.

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.