SEMAC - Semac Consul

📊 NSE: SEMAC 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 12:59

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single operating segment of Engineering, Procurement and Construction (EPC) Services. Standalone Net Profit before tax for H1 FY26 was INR 126.79 Lakhs, a significant turnaround from a loss of INR 476.82 Lakhs in H1 FY25.

Geographic Revenue Split

Operations are conducted in India and Oman. The company holds a 100% stake in its Indian subsidiary, Semac Construction Technologies India Private Limited, and a 65% stake in Semac and Partner LLC, Muscat, Oman.

Profitability Margins

Profitability showed a major turnaround; Standalone EPS improved from INR -17.54 in H1 FY25 to INR 3.93 in H1 FY26. Consolidated Total Comprehensive Income for equity holders turned positive at INR 122.42 Lakhs in H1 FY26 compared to a loss of INR 546.76 Lakhs in H1 FY25.

EBITDA Margin

Estimated Standalone EBITDA for H1 FY26 was INR 287.20 Lakhs (calculated as NPBT of INR 126.79 Lakhs + Finance Cost of INR 265.04 Lakhs + Depreciation of INR 75.30 Lakhs - Interest Income of INR 179.93 Lakhs).

Capital Expenditure

As of September 30, 2025, consolidated Property, Plant and Equipment (PPE) stood at INR 115.20 Lakhs and Right of Use assets at INR 266.65 Lakhs.

Credit Rating & Borrowing

Finance costs for H1 FY26 were INR 265.04 Lakhs, representing a 14.8% increase from INR 230.82 Lakhs in H1 FY25, indicating high borrowing costs relative to operating profit.

⚙️ Operational Drivers

Capacity Expansion

The company acquired the remaining 50% equity of its associate, Semac Construction Technologies India Private Limited, on June 26, 2025, making it a wholly-owned subsidiary to consolidate EPC capacity.

Manufacturing Efficiency

Not applicable as the company operates in the EPC services segment.

📈 Strategic Growth

Growth Strategy

Growth is driven by the consolidation of subsidiaries. The Board approved a Scheme of Amalgamation on July 30, 2025, to merge Semac Construction Technologies India Private Limited into the parent company to streamline EPC operations and reduce overheads.

Products & Services

Engineering, Procurement, and Construction (EPC) Services.

Brand Portfolio

SEMAC

Market Expansion

Expansion is focused on strengthening the domestic Indian EPC market and maintaining the 65% owned international operations in Muscat, Oman.

Strategic Alliances

The company transitioned its associate company, Semac Construction Technologies India Private Limited, into a 100% subsidiary during Q1 FY26.

🌍 External Factors

Industry Trends

The EPC industry is seeing a trend toward integrated service delivery; SEMAC is positioning itself by merging its technology-focused subsidiary into the main construction entity.

Competitive Moat

Moat is based on integrated EPC capabilities and an established international presence in Oman, though corporate governance needs further strengthening to sustain competitive advantage.

Consumer Behavior

Not applicable for B2B EPC services.

Geopolitical Risks

The 65% stake in the Oman-based subsidiary exposes the company to Middle Eastern geopolitical and economic stability risks.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the Companies Act 2013 and SEBI (LODR) Regulations 2015. It has substantially complied with corporate governance norms, though auditors noted compliance needs to be further strengthened.

Legal Contingencies

A Scheme of Amalgamation between the parent and its Indian subsidiary is currently pending approval before the National Company Law Tribunal (NCLT), Delhi.