Nature of the Disclosure

This is a regulatory filing submitted to the National Stock Exchange of India Limited and BSE Limited. The disclosure intimates the outcome of the Board of Directors meeting held on August 11, 2026, wherein the unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27), were approved, pursuant to Regulations 30 and 33 of the SEBI (LODR) Regulations, 2015.

The Board meeting commenced at 3:30 PM and concluded at 6:45 PM.

Key Quantitative Figures - Consolidated (Rs in Lakhs)

  • Total Income from Operations (Net): ₹28,247.96
  • Profit before Tax (before Exceptional Items): ₹1,316.90
  • Profit before Tax (after Exceptional Items): ₹1,316.90
  • Net Loss after tax: (₹1,105.09)
  • Total Comprehensive Income for the period: (₹970.27)
  • Paid-up Equity Share Capital (Face value ₹10/- each): ₹19,433.228 Lakhs
  • Earnings Per Share (EPS) (not annualized):
  • Basic: (₹0.06)
  • Diluted: (₹0.06)

Key Quantitative Figures - Standalone (Rs in Lakhs)

  • Total Income from Operations: ₹12,752.36
  • Profit before Tax (before Exceptional Items): ₹605.39
  • Profit before Tax (after Exceptional Items): ₹605.39
  • Net Loss after tax: (₹1,816.60)
  • Total Comprehensive Loss for the period: (₹1,734.85)
  • Paid-up Equity Share Capital (Face value ₹10/- each): ₹19,433.228 Lakhs
  • Earnings Per Share (EPS) (not annualized):
  • Basic: (₹0.09)
  • Diluted: (₹0.09)

Entities Involved

The consolidated results include the following entities:

  • Subsidiary: SEPC (FZE) - Sharjah
  • Step Down Subsidiary: Shriram EPC Arkan LLC
  • Joint Operations: Mokul Shriram EPC JV, Shriram EPC Eurotech Environmental Pvt Ltd - JV, SEPC DRS ITPL JV, SEPC-Furlong JV, SEPC-Archi JV

The standalone results include 5 joint operations.

Auditor's Review Report (Key Qualifications)

The statutory auditor, MSKA & Associates LLP, issued a qualified limited review report on both the standalone and consolidated results. The qualifications are:

1. Deferred Tax Asset (DTA): The carrying value of DTA as of June 30, 2026, is ₹25,765.77 Lakhs, recognized on carried forward business losses of ₹80,665.52 Lakhs. The auditor could not obtain sufficient evidence to corroborate management's assessment regarding the future utilization of DTA amounting to ₹9,163.42 Lakhs and is unable to comment on any adjustments required.

2. Overdue Balances: Non-Current Contract Assets include overdue balances of ₹9,037.98 Lakhs (net of provisions of ₹1,036.37 Lakhs). Non-Current Trade Receivables include overdue balances of ₹5,844.92 Lakhs (net of provisions of ₹538.77 Lakhs). These relate to stalled projects due to regulatory delays and disputes. The auditor is unable to comment on the recoverability and carrying value of these balances.

The auditor's conclusion is modified only for these matters.

Notes to Financial Results (Material Highlights)

  • Going Concern: The company reported a net loss for the quarter and has accumulated losses of ₹2,06,584.79 Lakhs (Consolidated) and ₹2,10,587.11 Lakhs (Standalone) as of June 30, 2026. The financials are prepared on a going concern basis based on the implemented resolution plan, equity infusion, completed rights issue, change in management, additional working capital funding, and expected cash flows from the order pipeline.
  • Exceptional Items: For the previous quarter (Q4 FY26) and full year FY26, exceptional items of ₹40.09 Lakhs and ₹109.06 Lakhs, respectively, represented loss on extinguishment of financial liability upon conversion of Compulsorily Convertible Debentures (CCDs) into equity. There were no exceptional items in Q1 FY27.
  • Acquisition of Avenir International: The Board, in its meeting on July 6, 2026, approved the proposed acquisition of 90% of the equity share capital of Avenir International Engineers and Consultants LLC, Abu Dhabi, by way of a share swap. Shareholder approval was obtained on August 5, 2026. Approvals from lenders and stock exchanges are under process.
  • Taxation: No tax provision has been made due to brought forward losses and unabsorbed depreciation available for set-off under the Income Tax Act, 1961.
  • DTA Write-off: During the quarter, the company charged off DTA of ₹2,421.99 Lakhs (recognized on carry forward business loss of ₹19,024 Lakhs expiring in FY27) as a prudent non-cash accounting adjustment.
  • Legal Matters: Updates were provided on an international arbitration award (SIAC) and a consumer dispute (NCDRC). For the SIAC matter, an indemnifying party (TCPL) has undertaken to settle the liability and has made an initial payment of ₹250 Lakhs, with quarterly payments of ₹750 Lakhs commencing Q2 FY28.
  • Rights Issue: Details were provided on the conversion of partly paid-up shares from the rights issue concluded in FY26.
  • New Labour Codes: The company is evaluating the potential impact of the new labour codes but believes any impact is unlikely to be material.

Financial Impact

Financial impact is quantified in the results above. The qualified audit opinion highlights potential adjustments to the carrying value of Deferred Tax Assets (₹9,163.42 Lakhs) and overdue Contract Assets/Trade Receivables (₹14,882.90 Lakhs gross), the extent of which cannot be determined.