SEPC Ltd has released its FY 2025-26 Business Responsibility and Sustainability Report, revealing a turnover of Rs 579.09 crore. Investors should note a significant legal update: the Madras High Court has issued an interim attachment on Rs 154.63 crore of the company's trade receivables, representing about one-third of its total receivables. While the company maintains operational stability, this development impacts working capital and remains a key area for monitoring.
SEPC Ltd Financial and Sustainability Update
Turnover: Rs 579.09 Crore | Receivables Attached: Rs 154.63 Crore
Reader Takeaway: Revenue steady, but court-ordered attachment of significant receivables may impact working capital and liquidity flow.
What just happened
SEPC Ltd has published its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26. The filing provides a detailed look at the company’s financials, environmental impact, and, most importantly, its current legal standing. The company reported a net worth of Rs 1,880.46 crore alongside its annual turnover.
Legal and Regulatory Update
A major disclosure in the filing is the interim attachment of trade receivables by the Hon'ble High Court of Madras. Out of total trade receivables amounting to Rs 449.62 crore, the court has attached Rs 154.63 crore. This stems from litigation involving GPE (India) Ltd and others versus Twarit Consultancy Services Private Ltd and SEPC Limited. The company has clarified that this order does not threaten its going concern status.
Operational and Employee Metrics
As of the end of the fiscal year, SEPC employed 212 permanent staff and 160 workers. The company noted a shift in turnover rates for permanent employees, which increased to 19% compared to 11% in the previous fiscal year. All Board members and Key Managerial Personnel participated in internal training initiatives during the period.
CSR and Governance
Although SEPC meets the net worth criteria for CSR applicability, it is not currently required to make CSR expenditures due to accumulated losses. The firm continues to operate under its board-approved EHSS (Environment, Health, Safety and Social) management framework, reporting zero workplace fatalities or major injuries for the year.
Risks to watch
The primary risk factor is the continued impact of the legal dispute on the company's balance sheet. The attachment of nearly 34% of trade receivables could put pressure on short-term liquidity, even as management continues to assert that the company's operational health remains secure.