SEPC wins ₹854.57 crore SAIL Burnpur pellet order 2026

Deal overview: SEPC’s new SAIL-IISCO win

SEPC Limited has secured a domestic engineering and construction contract worth ₹854.57 crore (net of input tax credit) from Steel Authority of India Limited’s IISCO Steel Plant (ISP) in Burnpur, West Bengal. The order relates to the Pellet Plant Balance of Plant (BOP) package, including civil and structural works, described as Pellet Package-2. The work is part of SAIL’s 4.08 million tonnes per annum (MTPA) crude steel capacity expansion programme at Burnpur. SEPC disclosed that it has received a Letter of Acceptance (LoA) for the package. The company’s update to exchanges positions the contract as a confirmed executable order. The defined execution timeline for the project is 32 months.

What SEPC has been awarded at Burnpur

The scope centres on executing the Pellet Plant BOP package for SAIL’s expansion project at the IISCO Steel Plant. Multiple reports cited the same core description: civil and structural works under the Pellet Package-2. The order is tied to the crude steel expansion to 4.08 MTPA at Burnpur, providing context on why the pellet plant-related package matters within the overall capacity build-out. SEPC’s filing described the engagement as an engineering and construction assignment. The company also clarified that the awarding entity is domestic. It further stated that neither the promoter nor the promoter group has any interest in the entity awarding the contract.

Contract value: ₹854.57 crore (net of input tax credit)

SEPC disclosed the order value at ₹854.57 crore, with one exchange-filing figure also presented as ₹854.56 crore and a rupee-precise amount of ₹854,56,71,234. The company has described the value as net of input tax credit. The contract strengthens SEPC’s domestic order intake at a time when investors track backlog additions as a proxy for revenue visibility. The company also characterised the order as meaningful for its industrial infrastructure execution credentials. Reports around the announcement highlighted that this is the second major order SEPC has received from SAIL in under two months.

Timeline: 32 months, with a defined effective date

The execution period is set at 32 months from the effective date of the contract. SEPC stated that the effective date will be the date of signing of the agreement or 30 days from the issuance of the LoA, whichever is earlier. This definition is important because it determines when the completion clock starts, even if on-ground mobilisation begins earlier or later. The LoA for this package was reported as dated August 4, 2026. SEPC’s updates indicate that the work will be delivered within the 32-month window measured from the effective date as defined in the contract.

Tender references and process details cited in the filing

SEPC stated that the order will be executed as per the terms and conditions of SAIL’s tender issued on October 10, 2025. The filing also referenced a corrigendum dated November 25, 2025, along with agreed commercial and technical deviations. These references suggest that the package moved through the formal tender and negotiation process before the LoA was issued. The disclosure also described the award as following a competitive tender process and several rounds of price negotiations, as mentioned in one report. SEPC has not disclosed additional financial milestones in the shared material, beyond the contract value and bank guarantee requirement.

Performance bank guarantee requirement: ₹47.58 crore

As part of the contract conditions, SEPC will be required to furnish a performance bank guarantee (PBG) of about ₹47.58 crore. The timeline disclosed for submitting the PBG is within 30 days of signing the contract. This requirement is common in large EPC and civil construction packages and typically serves as a security mechanism for the project owner. The amount is material relative to SEPC’s small-market-cap profile, which is one reason the disclosure attracted market attention. SEPC’s filing did not specify the bank or the exact format of the guarantee beyond the PBG value and timing.

Market reaction: SEPC shares rise after the LoA disclosure

SEPC shares rose sharply after the order announcement. At around 2:24 PM on August 5, 2026, SEPC was trading at ₹6.35 per share, up 6.72% from the previous trading session, as per the provided market snapshot. Other reports cited an intraday move to ₹6.37 (up as much as 7.06%) and an intraday high of ₹6.47 (up as much as 9%). The price action reflected investor focus on order inflows and project execution visibility. The stock move coincided with the company’s disclosure that the order value is ₹854.57 crore and the execution period is 32 months.

Second major SAIL order in under two months

Reports around the announcement described this as SEPC’s second major order from SAIL in under two months. One report referenced a separate ₹673.32 crore order from the same client in June. Taken together, the two orders indicate an increasing share of SAIL-linked industrial work in SEPC’s recent order additions. The company’s updates also described the latest win as strengthening its order book and supporting medium-term revenue visibility. Another synopsis referenced an order book figure of ₹10,455 crore, while a separate line cited ₹3,444.74 crore; these figures were not reconciled in the provided text, but both were presented as disclosed numbers in different summaries.

Key facts table

Why this order matters for SEPC’s execution profile

The disclosed scope is focused on civil and structural works within a pellet plant BOP package, aligning with SEPC’s positioning in industrial infrastructure and EPC execution. The 32-month duration provides a defined medium-term execution runway rather than a short-cycle contract. The explicit references to the tender date (October 10, 2025) and corrigendum (November 25, 2025) also indicate the package moved through formal procurement steps before award. For investors tracking small-cap order momentum, the combination of order size and time-bound execution schedule tends to influence expectations around revenue visibility, subject to timely project progress and billing.

Conclusion

SEPC’s ₹854.57 crore LoA from SAIL-IISCO for Pellet Plant BOP civil and structural works at Burnpur adds a large domestic project to its recent order wins. The contract carries a 32-month execution period, with the effective date defined by contract signing or 30 days from the LoA, whichever is earlier. SEPC also disclosed a ₹47.58 crore performance bank guarantee requirement within 30 days of signing. The next operational milestone for the project will be the signing of the agreement and commencement under the effective-date framework described in the filing.