LCC Projects

Gujarat based EPC player

LCC Projects, promoted by Arjan Suja Rabari and Laljibhai Arjanbhai Ahir, is a multidisciplinary engineering, procurement and construction (EPC) company in irrigation and water supply projects segment. Over a period of two decades, the company have executed a wide range of projects in the irrigation and water supply segment such as construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, water supply schemes, and other EPC projects.

Additionally, it have executed a project related to the construction of metro rail project including construction of station along with its approaches and viaducts and are in the process of executing a mining development and operations (?MDO?) project. While the company continues to focus on water management projects as part of its growth strategy, it intend to diversify into and will continue to bid for projects related to renewable energy including solar and wind power projects and other projects including mining, waste-water management, desalination, railways, metro rail and sewerage network and treatment. Further, it propose to also explore more opportunities in undertaking independent operations and maintenance (?O&M?) projects in order to realize higher margins during the operation and maintenance stage of the project.

The company has recently established a manufacturing unit in Jaspur, Gujarat, entering into the business of manufacturing and supplying precast concrete solutions.

Irrigation and water supply projects accounted for about 87.44% of total revenue in FY26 with others account for balance 12.56% [metro rail work 2.63%, mining work 1.76%, renewable energy projects 6.71%, road work 0.02%, project consultancy services 0.17% and balance from other miscelenuous construction projects].

Of the revenue from operations in FY26 about 89.34% is from government departments and 10.66% from private customers. Moreover of the FY26 revenue from operations about 39.64% is from Gujarat, 36.58% from Madhya Pradesh, 10.17% from Rajasthan, 4.33% from Jharkhand, 2.11% from Uttar Pradesh, 1.71% from Maharashtra, 1.68% from Andhra Pradesh and balance from other states.

Order book of the company as end of Mar 31, 2026 stood at Rs 7953.181 crore [compared to 7882.171 crore as end of Mar 31, 2025] spread across 103 projects and of which 83.26% is from irrigation & water supply projects and others accounts for balance 16.74% [metro rail work 4.73%, mining work 7.55%, renewable energy projects 3.86%, road work 0.01% and balance from other miscelenuous construction projects]. Further of the order book about 79.07% is from government departments and 20.93% is from private customers. Projects under the Jal Jeevan Mission constituted 19.54% (or Rs 1555.007 crore) of its total order book as end of Mar 31, 2026.

The issue, Objects of the issue

The offer comprises fresh issue of equity shares of Rs 5 each aggregating to Rs 258 crore and an offer for sale of 11585000 equity shares The OFS component is entirely by promoters.

Of the net proceeds from fresh issue, the company intends to use Rs 180 crore towards prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company; Rs 14.691 crore towards purchase of equipment; and balance towards general corporate purposes.

Outstanding borrowings on consolidated basis as of end of July 31, 2026, stood at Rs 1817.711 crore.

Strengths

Multidisciplinary EPC company in India for irrigation and water supply projects

Have experience of executing projects across diverse geographic locations in India as well as executing projects with different levels of complexities.

Strong diversified order book, which translates into 2.21% of its FY26 revenue thereby providing strong revenue visibility.

In-house project designing capabilities with robust technical knowledge;

Weaknesses

Any adverse change by state and central government in fiscal allocations for infrastructure development or a downturn in available work in the infrastructure industry resulting from any change in government or government policies or fiscal allocations the performance of the company will be adversely affected.

Exposed to general risks associated with EPC infra projects including ROW issues.

Top 1/3/10 customers accounted for 20.01%/43.32%/72.30% of revenue in FY26 and 28.92%/56.31%/84.10% in FY25.

A substantial number of its ongoing projects are being executed in the state of Gujarat and Madhya Pradesh. These two states together accounted for 76.22% of revenue in FY26.

Significant part of the order book is from Jal Jeevan Mission scheme, where collections against bill raised is delayed there by forcing the contractor to slowdown execution across the industry in general.

Trade receivables as end of Mar 31, 2026 stood at Rs 455.821 crore, which translates into about 12.66% of FY26 revenue that is an increase from about 8.57% in FY25. Of the trade receivable amounts outstanding beyond six months is about Rs 8.608 crore or 1.89% of total trade receivables.

Value of projects bagged by the company was Rs 4395.117 crore in FY24 and that reduced to Rs 4257.828 crore in FY25 and that further down to Rs 3344.984 crore in FY26. The bid success rate is on steady decline from 22.89% in FY24 to 21.35% in FY25 and 13.53% in FY26.

Have no prior experience in the manufacturing, marketing, or sale of precast concrete products.

Projects undertaken through a joint venture may be delayed on account of non-performance of the joint venture partner, resulting in delayed payments or invocation of performance guarantee issued by the company, could lead to material adverse effect on the business.

Valuation

Consolidated re-stated revenue for the fiscal ending March 2026 stood higher by 23% to Rs 3600.25 crore. With OPM expanding by a modest 40 bps to 13.4%, the growth of OP was 27% to Rs 481.66 crore. The PBT was up 29% to Rs 379.33 crore. With EO being an expense of Rs 0.83 crore (against nil), the PBT after EO was up 29% to Rs 378.50 crore. Finally, net profit after MI was higher by 27% to Rs 283.39 crore.

On expanded equity, the EPS for FY2026 was Rs 9.8. On the upper price band, the PE works out to 14.9 times of its FY26 EPS. P/BV stood at 3.7 times and EV/Sales stood 1.3 times. ROE was 20.3%.

In comparison, Vishnu Prakash R Punglia (VPRPL) that undertakes EPC projects in water supply reported net loss for FY26. It quotes at a price/BV and EV/Sales of 0.7 times and 1.3 times respectively. ROE and OPM for FY26 of VPRPL stood at -22.3% and -10.8%.

Enviro Infra, that also takes up JMM water projects quotes at a PE of 18.3 times, price/BV of 2.8 times, EV/Sales of 3.4 times, ROE of 15.4%. Its OPM for FY26 was 23.4%. Similarly WPIL that takes up JMM projects along with its core pumps business quotes at a PE of 26.9 times, ROE of 9.9 times and OPM of 17.2 times. Vindhya Telelinks that has significant revenue coming from JMM water projects apart from its core JFTC/OFC cables business quotes at a PE of 14.4 times, ROE of 5.4 times and OPM of 6.1 times.

LCC Projects : Re-stated Consolidated Financials
	2403 (12)	2503 (12)	2603 (12)
Sales	2438.91	2918.29	3600.25
OPM (%)	10.9	13.0	13.4
OP	265.99	378.24	481.66
Other income	10.88	22.72	39.20
PBIDT	276.86	400.96	520.86
Interest	49.89	80.15	96.17
PBDT	226.98	320.81	424.69
Depreciation	19.06	27.36	45.36
PBT	207.92	293.45	379.33
EO Exp	35.52	0.00	0.83
PBT after EO	172.40	293.45	378.50
Tax	50.43	69.91	91.92
PAT	121.98	223.55	286.57
Share of Profit from Associates	0.02	0.08	-0.13
Minority Interest	0.21	1.22	3.05
Net profit after MI	121.79	222.41	283.39
EPS (Rs)*	5.1	7.7	9.8
* on post IPO fully dilluted equity (on upper price band) of Rs 144.84 crore. Face Value: Rs 5
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate database

LCC Projects : Issue Highlights
Fresh Issue (Rs crore)	258
Offer for sale (in nos.)	11585000
Price band (Rs.) **
Upper	146
Lower	139
Post-issue equity (Rs crore)
in Upper price band	144.84
in Lower Price Band	145.28
Post-issue promoter (including promoter group) stake (%)	89.90
Minimum Bid (in nos.)	102
Issue Open Date	09-09-2026
Issue Close Date	11-09-2026
Listing	BSE, NSE
Rating	41/100

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