LCC Projects IPO (9 Sep-11 Sep) Analysis
Updated: Sep 11
LCC Projects Limited is a multidisciplinary Engineering, Procurement, and Construction (EPC) company specialising in irrigation and water supply infrastructure projects across India. The company was incorporated in 2017 as M/s. Laxmi Construction Co. and has since grown into a full service EPC contractor with presence across 12 states.
The company primarily executes government funded infrastructure projects involving construction of canals, pipelines, water treatment plants, and related civil works. As of March 31, 2026, LCC Projects had 103 ongoing projects and 80 completed projects. Irrigation and water supply projects contributed 87.44% of total revenue in FY2026.
LCC Projects operates a manufacturing unit in Jaspur, Gujarat for precast concrete solutions, enabling better quality control and faster project execution. The company maintains an in house design and engineering team comprising 698 qualified engineers. As of FY2026, the company had 2,093 permanent employees.
The order book stood at Rs. 7,95,318 Lakhs as of March 31, 2026, with 79.07% of orders sourced from government departments. Geographically, Madhya Pradesh and Gujarat together contributed approximately 76% of FY2026 revenues.
IPO BASICS
Parameter | Details |
Issue Type | Fresh Issue + Offer for Sale (OFS) |
Fresh Issue Size | Rs. 25,800 Lakhs |
OFS | Up to 1,15,85,000 equity shares by promoter selling shareholders |
Face Value | Rs. 5 per share |
Listing | BSE and NSE |
Anchor Date | September 8, 2026 |
IPO Open Date | September 9, 2026 |
IPO Close Date | September 11, 2026 |
BRLM | Motilal Oswal Investment Advisors Limited |
Registrar | KFin Technologies Limited |
The company has carried out a bonus issue in the ratio of 3:1 (three new equity shares of Rs. 5 each for every one existing equity share of Rs. 5 each) prior to the IPO. Pre IPO shares outstanding total 27,20,00,000 equity shares.
The promoters are Arjan Suja Rabari (Chairman and Managing Director, 28 plus years of experience), Laljibhai Arjanbhai Ahir (16 plus years of experience), and Maya Arjan Rabari. The industry report has been prepared by ICRA Analytics Limited titled Assessment of Infrastructure Industry in India, dated August 21, 2026.
USE OF PROCEEDS
The net proceeds from the Fresh Issue are proposed to be utilised as follows:
Purpose | Amount (Rs. Lakhs) |
Purchase of equipment | 1,469.10 |
Prepayment or repayment of certain outstanding borrowings | 18,000.00 |
General Corporate Purposes | Balance (not exceeding 25% of Gross Proceeds) |
The primary use of IPO funds is debt reduction. A total of Rs. 18,000 Lakhs (approximately 69.8% of fresh issue proceeds) is earmarked for repaying existing borrowings, which will improve the company's financial leverage ratios. Equipment purchases worth Rs. 1,469.10 Lakhs will support capacity expansion and project execution capabilities.
FINANCIAL PERFORMANCE
LCC Projects has demonstrated strong and consistent growth across all key financial metrics over the past three fiscal years. Revenue grew from Rs. 2,43,891 Lakhs in FY2024 to Rs. 3,60,025 Lakhs in FY2026, reflecting a compound annual growth rate (CAGR) of 21.50%.
Metric | FY2024 | FY2025 | FY2026 |
Revenue (Rs. Lakhs) | 2,43,891 | 2,91,829 | 3,60,025 |
EBITDA (Rs. Lakhs) | 24,137 | 40,104 | 51,990 |
EBITDA Margin | 9.90% | 13.74% | 14.44% |
PAT (Rs. Lakhs) | 12,200 | 22,363 | 28,644 |
PAT Margin | 5.00% | 7.66% | 7.96% |
Net Worth (Rs. Lakhs) | 38,283 | 60,499 | 88,841 |
Total Debt (Rs. Lakhs) | 42,164 | 74,677 | 86,065 |
Debt to Equity Ratio | 1.10x | 1.23x | 0.97x |
EBITDA grew at a CAGR of 46.76% from FY2024 to FY2026, reflecting significant improvement in operating efficiency and margin expansion from 9.90% to 14.44%. PAT grew at an even stronger CAGR of 53.23% over the same period. The company has consistently maintained a Return on Capital Employed (RoCE) of approximately 27% across all three years, indicating strong capital efficiency.
The order book of Rs. 7,95,318 Lakhs as of March 31, 2026 represents more than 2.2x FY2026 revenues, providing strong revenue visibility for the next two to three years. Total debt increased during the period to support business growth but the debt to equity ratio improved to 0.97x in FY2026 from 1.23x in FY2025, indicating improving financial health.
PEER COMPARISON
The company operates in the EPC and infrastructure contracting space with a focus on irrigation and water supply. Listed peers identified in the Red Herring Prospectus include:
Company | Revenue FY2026 (Rs. Lakhs) | EPS (Rs.) | P/E (x) | RoNW | NAV per Share (Rs.) |
LCC Projects Limited (Issuer) | 3,60,025 | 10.42 | N/A (IPO) | 32.24% | 32.66 |
Vishnu Prakash R Punglia Ltd. | 85,120 | (12.04) | N/A | N/A | 50.54 |
Enviro Infra Engineers Ltd. | 1,14,560 | 10.42 | 19.14x | 15.28% | 70.23 |
Among listed peers, only Enviro Infra Engineers Limited has a meaningful P/E ratio of 19.14x, which is also the basis for industry P/E comparison. LCC Projects is significantly larger than both listed peers by revenue, with FY2026 revenues of Rs. 3,60,025 Lakhs compared to Rs. 1,14,560 Lakhs for Enviro Infra and Rs. 85,120 Lakhs for Vishnu Prakash R Punglia. The company also has a significantly better return on net worth at 32.24% compared to 15.28% for Enviro Infra.
KEY RISKS
Government Dependency and Concentration Risk
Approximately 79.07% of the company's order book is derived from government departments. This exposes the company to risks related to policy changes, budget allocation delays, and changes in government priorities. Similarly, revenue is geographically concentrated with Madhya Pradesh contributing 36.58% and Gujarat contributing 39.64% of FY2026 revenues, making the company vulnerable to any slowdown in infrastructure spending in these two states.
Working Capital Intensity
The EPC business is working capital intensive, requiring significant security deposits, performance guarantees, and mobilisation advances. Delays in project payments from government clients can strain cash flows and require additional borrowings, potentially increasing the cost of financing and impacting margins.
Equipment Procurement and Supply Chain Risk
The company procures specialised equipment including SANY branded machinery from Chinese manufacturers. Any disruption to supply chains, import restrictions, or currency fluctuations affecting imported equipment costs could impact project timelines and margins. The use of IPO proceeds for equipment purchases reflects the company's ongoing need to expand its equipment fleet.
Debt Levels and Financial Leverage
Total debt as of FY2026 stood at Rs. 86,065 Lakhs with a debt to equity ratio of 0.97x. While part of the IPO proceeds (Rs. 18,000 Lakhs) is earmarked for debt repayment, the company's borrowings have grown significantly from Rs. 42,164 Lakhs in FY2024. Continued reliance on debt for working capital can expose the company to interest rate risk and refinancing risk.
Execution Risk in Large Scale Projects
With 103 ongoing projects across 12 states as of March 2026, managing simultaneous large scale infrastructure projects involves significant coordination, resource allocation, and execution risk. Any delays, cost overruns, or disputes with government clients could adversely affect profitability and reputation.
KEY POSITIVES
Leading Position in Irrigation and Water EPC
LCC Projects is one of the leading EPC companies in the irrigation and water supply segment in India. With 103 ongoing projects and 80 completed projects, the company has demonstrated consistent delivery capability in a technically specialised and government priority sector. The Jal Jeevan Mission and similar national infrastructure programmes provide a strong multi year runway for growth.
Large and Growing Order Book
The order book of Rs. 7,95,318 Lakhs as of March 31, 2026 is more than 2.2x FY2026 revenues, providing strong revenue visibility. The order book grew from Rs. 6,26,897 Lakhs in FY2024 to Rs. 7,95,318 Lakhs in FY2026, reflecting the company's ability to continuously win new projects and maintain healthy replenishment ratios.
Strong Financial Performance with Margin Expansion
The company has consistently expanded its EBITDA margins from 9.90% in FY2024 to 14.44% in FY2026, driven by operating leverage and improved project execution efficiency. PAT CAGR of 53.23% over FY2024 to FY2026 is among the highest in the EPC sector and reflects the quality and profitability of projects in the portfolio.
In House Engineering and Design Capability
The company's in house team of 698 qualified engineers provides significant competitive advantages in project design, value engineering, and cost optimisation. This capability differentiates LCC Projects from pure play construction companies and enables better control over project outcomes and margins.
Consistent Capital Efficiency
The company has maintained a RoCE of approximately 27% consistently across FY2024, FY2025, and FY2026, demonstrating capital efficient business management. Return on equity has been strong at over 31% in all three years, reflecting high profitability relative to the equity base.
Experienced Promoter and Management Team
The promoters bring deep domain expertise with Arjan Suja Rabari having over 28 years of experience and Laljibhai Arjanbhai Ahir having over 16 years in the infrastructure sector. This experience is critical in managing complex government contracts, maintaining relationships with key stakeholders, and navigating regulatory requirements in the EPC domain.
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