SEPC Limited Q1FY27 Results: Net Loss Widens to ₹1,105 Crore, Revenue Up 38.5%
SEPC Limited reported a consolidated net loss of ₹1,105.09 lakhs for Q1 FY27, compared to a profit last year. Total income grew by 38.5% to ₹28,247.96 lakhs. Standalone net loss widened to ₹1,816.60 lakhs. The company is also pursuing the acquisition of Avenir International Engineers and Consultants LLC.
The widening net loss and qualified auditor's report are material negative events that could significantly impact investor sentiment and the company's stock performance.
The company reported a significant increase in net loss for the quarter, despite revenue growth. The auditor's qualified report also raises concerns about the company's financial health.
SEPC Limited announced its unaudited financial results for the quarter ended June 30, 2026, reporting a consolidated net loss of ₹1,105.09 lakhs (₹11.05 crore) compared to a profit of ₹1,654.72 lakhs (₹16.55 crore) in the same quarter last year. The total income from operations for the quarter stood at ₹28,247.96 lakhs (₹282.48 crore), an increase of approximately 38.5% from ₹20,379.45 lakhs (₹203.79 crore) in the corresponding quarter of the previous year. The standalone net loss for the quarter was ₹1,816.60 lakhs (₹18.17 crore), a significant increase from a profit of ₹685.99 lakhs (₹6.86 crore) in Q1 FY26. The standalone total income from operations rose to ₹12,752.36 lakhs (₹127.52 crore) from ₹8,055.90 lakhs (₹80.56 crore) in the prior-year period.
The company's Board of Directors, in their meeting held on August 11, 2026, approved these unaudited financial results, along with the limited review report from the statutory auditors. The detailed financial results will be published in English and Tamil newspapers and will also be available on the company's website and the stock exchanges' websites.
The auditors' limited review report highlighted certain qualifications. These include concerns regarding the carrying value of Deferred Tax Assets (DTA) amounting to ₹9,163.42 lakhs due to insufficient audit evidence for future taxable profits, and issues with overdue balances in non-current contract assets and trade receivables totaling ₹9,037.98 lakhs and ₹5,844.92 lakhs respectively, related to stalled projects. The auditors could not comment on the adjustments that may be required for the DTA and the carrying value of these receivables.
Additionally, the company is proceeding with the proposed acquisition of 90% equity share capital of Avenir International Engineers and Consultants LLC, Abu Dhabi, via a share swap. Shareholder approval for this acquisition was obtained on August 5, 2026, and approvals from lenders and stock exchanges are currently being processed.
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