We hereby inform the Exchange of the Press Release titled "SEPC sees Neutral Financial Impact amid Independent Audit Order" Detailed letter is enclosed.
SEPC · price
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Awaiting price reaction for this filing.
SEPC Limited disclosed a February 19, 2026 interim order from the Madras High Court in an ongoing dispute with GPE (India) Ltd. The court ordered the attachment of ₹154.63 crore in trade receivables, out of SEPC's reported receivables of ₹449.62 crore, as a transitional measure. PriceWaterhouseCoopers has been appointed to conduct a focused review of SEPC's financial records, with a report due by March 23, 2026. The company claims a neutral financial impact because a 2015 indemnity agreement with co-respondent Twarit Consultancy Services covers all liabilities, and Twarit has already paid ₹164.5 crore under this indemnity. The dispute stems from a 2010 agreement (to which SEPC was not a party), with SEPC becoming a respondent in 2015 and the dispute arising in 2017, subsequently going through Singapore arbitration and Indian courts. Separately, Q3 FY26 results showed consolidated revenue of ₹796.89 crore and net profit of ₹39.81 crore for the nine months ended December 2025.
Despite the sizable court-ordered attachment, the indemnity coverage with Twarit is expected to shield SEPC's shareholders from direct financial loss, though the PWC audit and ongoing legal process introduce near-term uncertainty that may weigh on sentiment. The interim nature of the order and the company's strong nine-month FY26 operating performance provide some buffer, but investors should watch the March 23 PWC report for clarity.