Penny stock below Rs 10: Company Joins Rs 3,300 Crore Coal Mining Project with 10-Year Tenure

SEPC Limited has announced its entry into a large-scale coal mining project by securing a key role in a consortium contract valued at around Rs 3,300 crore. The company executed a Memorandum of Understanding (MoU) on December 14, 2025, to participate in a project awarded by South Eastern Coalfields Limited (SECL), marking a significant expansion of its mining portfolio.

The project has been awarded to the JARPL-AT Consortium, formed by Jai Ambey Roadlines Private Limited and Avinash Transport. SEPC Limited has entered into agreements with both consortium partners for the execution of the Rampur Batura Opencast Coal Mine Project. The mine is located in the Sohagpur Area of Shahdol district, Madhya Pradesh.

The aggregate value of the contracts associated with the project stands at approximately Rs 3,299.51 crore, with an estimated project tenure of about 10 years. The long duration of the contract provides strong revenue visibility and adds stability to SEPC’s domestic project portfolio.

Under the agreement, SEPC will support the project across the full execution lifecycle. The scope of work includes the supply of materials, deployment of machinery and manpower, project management, consultancy services, and other associated activities as defined in the contract. Management highlighted that the engagement follows an asset-light and capital-efficient model, enabling participation in a high-value mining project without aggressive capital deployment.

Commenting on the development, Venkataramani Jaiganesh, Managing Director of SEPC Limited, said that the association strengthens the company’s mining portfolio and reinforces its diversified Order Book. He added that the project aligns with SEPC’s focus on long-term contracts that offer scale, revenue visibility, and execution certainty.

SEPC Limited, formerly known as Shriram EPC Limited, provides turnkey engineering, procurement, and Construction solutions across sectors such as water and wastewater, roads, industrial infrastructure, and mining. The company works with central and state government agencies and undertakes complex infrastructure projects across India.

The new mining engagement comes on the back of strong financial performance. In H1 FY26, SEPC reported consolidated total income of Rs 455 crore, EBITDA of Rs 54 crore, and a net profit of Rs 24.85 crore. The net profit for the first half of FY26 has already exceeded the full-year net profit of Rs 24.84 crore reported in FY25. Revenue in H1 FY26 reached around 76 per cent of the full-year FY25 revenue of Rs 597.65 crore, indicating healthy business momentum and improved prospects for FY26.

The stock price is trading at 20.7 per cent above its 52-week low.

Disclaimer: The article is for informational purposes only and not investment advice.