LCC Projects Limited is launching an IPO. The company runs an EPC business, designing, procuring materials for, and constructing irrigation and water supply infrastructure such as canals, dams, barrages, pipelines and lift irrigation systems, alongside metro rail and mining EPC works, and precast concrete manufacturing.
IPO Summary
Introduction
India holds about 4% of the world’s fresh water and must feed 1.4 billion people on it. Agriculture uses most of that water, so irrigation efficiency decides how much food the country grows.
LCC Projects Limited builds the canals, pipelines, and dams that the Government pays for. The Ahmedabad based company has worked in the irrigation and water supply segment for two decades.
They’re now raising money through an IPO consisting of a Fresh Issue of ₹258 Cr and an Offer for Sale of ~₹169 Cr, from 9th to 11th Sep, 2026.
The Business Model
LCC Projects operates as an EPC contractor, generating revenue entirely by winning and executing new contracts rather than relying on recurring, steady-state fees. While their primary clients are government departments that dictate project specifications and milestone-based payment schedules.
LCC adapts to various commercial structures; offering:
- Item rate
- Turnkey
- Lump sum and
- Percentage contracts based on client needs.
Though historically anchored in large-scale irrigation and water supply infrastructure like dams and canals, the company is actively diversifying its portfolio to include heavy infrastructure such as mining, roadwork, and urban transit systems.
This strategic expansion is reflected in their notable projects, which ranges from the
- Tawa Left Bank Canal and Sondwa Lift Micro Irrigation Project in Madhya Pradesh
- Paldi Station Metro Rail Project in Gujarat
- Bishrampur Mining Project in Chhattisgarh, etc
The company has developed a precast concrete manufacturing unit at Jaspur, Gujarat, which began production in December 2025.
Unit Economics: Value per Order
- Average Order Value has shrunk, from ₹231 Cr in FY24 to ₹145 Cr in FY26.
- Adj. EBITDA per order rose in FY25 before falling back in FY26 to ₹21 Cr.
- EBITDA Margin, though, stayed stable between FY25 to FY26.
Operating Metrics
- Order Book: Grew from ₹6,269 Cr in FY24 to ₹7,953 Cr in FY26, but almost all of that growth came in FY25.
Revenue by State: Gujarat’s contribution to revenue jumped from 11% in FY24 to 40% in FY26, while Madhya Pradesh’s share fell from 66% to 37% over the same period.
Revenue Mix by Segment: The company remains overwhelmingly dependent on the irrigation and water supply sector, which consistently accounted for the vast majority of its total mix.
The Financial Stuff
- Net profit margin improved from 5% in FY24 to 8% in FY26. The profit boost was driven by managing construction costs more efficiently as sales grew, since interest and tax expenses simply increased alongside overall earnings.
- Net Profit (PAT) saw a massive jump of roughly 83% in FY25 and continued to grow in FY26.
LCC’s Peers (FY26)
- LCC Projects operates on a much larger scale, generating ₹3,600 Cr in revenue, than its peers.
- LCC Projects also carries a higher D/E ratio than JWIL Infra, and has higher levels of debt over the past few years, with climbing Finance Costs.
Key Risks
- Customer concentration. LCC’s top ten customers supplied 72% of FY26 revenue. Nearly all of these customers are central or state government departments. The loss of, or a payment delay from, any one of them would hit revenue.
- High Leverage: LCC’s total debt to equity ratio stood at 0.97x as of FY26. Total debt has doubled since FY24. A large share of cash flow goes toward servicing debt rather than funding growth, and this leaves less room to absorb a rise in interest rates or a slowdown in billing.
- Receivables are aging fast: The trade receivables turnover ratio fell from 14.46 times in FY24 to 10.20 times in FY26. Trade receivables as a share of revenue nearly doubled over the same period. Cash is taking longer to come in even as revenue grows, which puts more strain on working capital and, in turn, on the borrowing that funds it.
Conclusion
LCC Projects has grown revenue and profit faster than either of its named listed peers, on the back of a large, government-heavy order book in irrigation and water supply. But the order book grew only ~1% in FY26 even as revenue grew ~23%. The bid success rate has fallen for three straight years, and both leverage and receivables have moved in the wrong direction.
