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LCC Projects Research Report (Sep 25, 2026): Irrigation Infrastructure, Order Book and Business Expansion

Written by: Vaqarjaved Khan, CFAUpdated on: 28 Sept 2026, 6:52 pm IST
As per Angel One’s research report, LCC Projects’ revenue grew 23% in FY26 to ₹3,600 crore, while its order book stood at ₹7,953 crore across 103 projects.
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LCC Projects Limited is an Ahmedabad-based EPC contractor focused on irrigation and water-supply infrastructure, with operations spanning dams, canals, lift irrigation and pipeline networks. The company has also expanded its bidding activities into areas such as metro rail and mining.  

This is a research report by Angel One covering the sector outlook, LCC Projects’ business and financial performance, order book, and key risks. 

Company Overview  

LCC Projects Ltd, headquartered in Ahmedabad, is an EPC contractor focused on irrigation and water-supply infrastructure. It began as the partnership firm Laxmi Construction Co. and was incorporated as a company in 2017; it has 2,093 permanent employees.  

Its work spans dams, canals, lift irrigation and pipeline networks, and EPC made up 99.8% of FY26 revenue. The stock listed on 17 September 2026 after a Rs 427 crore IPO priced at Rs 146 and subscribed 49.6x.  

Sector Outlook  

The Union Cabinet extended the Jal Jeevan Mission to December 2028 and raised its total outlay to Rs 8.69 lakh crore. The FY27 allocation is Rs 67,670 crore.  

Fund flow is the constraint: FY26 JJM spending was revised to Rs 17,000 crore, 75% below budget, after irregularities in several states. Irrigation, which accounts for about 90% of India's water use, is funded through PMKSY and state budgets. 

Company Outlook  

FY26 revenue grew 23% to Rs 3,600 crore, and PAT rose 28% to Rs 286 crore. EBITDA margin widened 70 bps to 14.4%, up from 9.9% in FY24, and FY26 ROE was 32.2% with ROCE of 27.1%.  

The Rs 7,953 crore order book spans 103 projects and covers 2.2x FY26 revenue. The largest are the Sondwa Lift Micro Irrigation Project and the Sidhi Bansagar and Gandhi Sagar-1 multi-village water schemes.  

The company is widening into metro-rail and mining contracts. We model revenue of Rs 5,310 crore in FY28E, a 21% CAGR over FY26-FY28E, below the 23% growth delivered in FY26.  

Rs 180 crore of the Rs 258 crore fresh issue goes to repaying debt, against FY26 borrowings of Rs 861 crore, which cuts interest cost and frees bank limits for new bids. 

The investment case rests on visibility. FY27E revenue of Rs 4,390 crore requires converting only 55% of the existing Rs 7,953 crore order book, so most of our estimate is covered by contracts already won; FY28E depends on fresh inflows from state irrigation and rural water schemes.  

We hold EBITDA margin at 14.0% in FY27E and FY28E, 40 bps below FY26, to allow for early-stage metro-rail and mining contracts and slower pass-through of input costs. EBITDA rises from Rs 520 crore in FY26 to Rs 615 crore in FY27E and Rs 743 crore in FY28E.  

Rs 180 crore of the fresh issue goes to repaying debt, against FY26 borrowings of Rs 861 crore, which lowers interest cost. PAT reaches Rs 355 crore and Rs 437 crore, giving EPS of Rs 12.3 and Rs 15.1 on 29.0 crore post issue shares, a 24% PAT CAGR.  

The balance sheet deleverages as equity grows. Net worth of Rs 888 crore in FY26 rises with the Rs 258 crore fresh issue, taking debt-to-equity below the 0.97x reported at FY26. ROE moderates from 32.2% to 25.5% by FY28E on the larger equity base.  

To hold the order book at Rs 7,953 crore while billing Rs 4,390 crore in FY27E, LCC needs about Rs 4,400 crore of new orders, 1.2x FY26 revenue. Entry into metro-rail and mining widens the pool of tenders it can bid for. 

Key Risks  

Working capital is the main watch point: debtor days rose from 34 to 46 and receivables reached 12.7% of revenue. Revenue depends on state-government irrigation and water budgets, so payment delays or slower award cycles would hit both growth and cash flow.

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Published on: Sep 28, 2026, 12:39 PM IST

Vaqarjaved Khan, CFA

Vaqarjaved Khan is a Senior Analyst at Angel One with nearly 10 years of experience in Indian equity markets. At Angel One he covers company and industry research, portfolio management, macro analysis and valuations. His work supports client-facing research and advisory across large, mid and small-cap names. He holds an MBA in Finance, the CFA charter (US), FMVA, and NISM Research Analyst certification. 

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