Sepa's September Sales Matched Its Whole Spring Quarter in One Month; Spring Profit Rose 10x While Its P/E Stayed Half the Sector's (Wednesday, September 30, 2026)

Sepahan Industrial Group, traded under the ticker Sepa (فسپا), grew its net profit in the spring quarter of Iranian year 1405 nearly 10x year on year, while operating revenue rose 95%. Yet based on its official financial statements and Tehran Stock Exchange data, the stock's price-to-earnings ratio (P/E) on September 30, 2026 was still 7.64, roughly half the basic-metals sector's 14.32 average. The share hit a one-year high of 9,290 rials that same day, closing on a buy queue.

Background

Sepa trades on the Tehran Stock Exchange's first board in the basic-metals sector; its main products are gas and industrial pipes plus steel sheet, bundle and coil. Per its three-month income statement for the period ended June 21, 2026 (Codal tracing number 1566134, published July 18, 2026), operating revenue rose from 7,018,397 million rials in spring 1404 to 13,662,556 million rials in spring 1405, a 95% increase. Net profit over the same period jumped from 589,433 million rials to 6,270,410 million rials, a 964% increase. Sahmino surfaced Sepa by screening 1,819 Tehran and Iran Fara Bourse symbols against three filters (annual profit growth above 25%, P/E below three quarters of the sector average, and return on equity above 15%); 92 symbols passed, and Sepa led them on profit growth.

Key numbers

• Spring-quarter net profit: from 589 billion to 6,270 billion rials, up 964% (statement for the period ended June 21, 2026)
• Gross margin: from 10.4% in spring 1404 to 54.3% in spring 1405
• P/E: 7.64x versus the sector average of 14.32x (as of September 30, 2026, Sahmino data)
• Share price return: 465% over the past year and 58.3% in the past month alone (through September 30, 2026)
• September's domestic sales alone: 12,608,169 million rials, near the entire spring quarter's revenue (monthly activity report, tracing number 1603630)
• Return on equity (ROE): 51.35%; debt to equity of only 0.10x

Drivers

The main driver of this profit was not higher sales volume but cost control alongside higher selling prices. Sepa's cost of sales fell by about 1% in spring 1405 (from 6,289,517 to 6,243,922 million rials) while operating revenue rose 95%. The result was gross margin expansion from 10.4% to 54.3%, meaning most of the new profit came from passing higher steel-product prices through to customers while raw-material and energy costs did not rise at the same pace. Sepa's monthly activity report for the month ending September 22, 2026, published October 6 (Mehr), shows domestic sales of 12,608,169 million rials in that single month alone, close to the entire spring quarter's revenue; the sales pace is accelerating, not slowing. A new major shareholder, the leveraged Shetab Agah investment fund, entered with a 1.06% stake on September 23, 2026, a sign of institutional attention to the trend.

Outlook

If the sales acceleration repeats in the coming months' activity reports, summer-quarter profit could exceed spring's and widen Sepa's P/E gap with the sector further, unless the share price rises faster than real earnings first. The main risk is that this comparison rests on one three-month quarter against a weak spring-1404 base; one quarter alone does not establish a long-term trend. After six consecutive higher closes and a one-year high on September 30, 2026 closing on a buy queue, Sepa could also be due a short-term pullback after such a steady run. Rasad's desk currently carries no official buy call on Sepa, its stance reading "watch," but two open technical (trend-reversal type) signals dated September 27 and 28, 2026 carry targets of 9,293 and 9,541 rials with invalidation near 8,000 rials; the first target was effectively met by today's 9,290-rial price.

Verdict

Rasad's verdict: despite a 465% one-year price rally, Sepa still trades at a P/E of 7.64, about half the basic-metals sector average, and Rasad expects the price to hold above 9,290 rials as long as monthly sales keep running ahead of last year's. This reading holds until the next monthly activity report; it is invalidated by a close below 8,000 rials.

What to watch

Run the same filter in Rasad's screener (P/E below three quarters of the sector average, profit growth above 25%, and ROE above 15%) to see which other symbols sit alongside Sepa. Follow Sepa's live price page to track its buy queue and daily moves, and for a comparable screen, read Sahmino's earlier report on 50 cheap, profitable stocks.