LCC Projects IPO

Subscription Status

GMP History

Strengths

• ✓The company claims to have developed expertise in executing irrigation and water supply projects across India. Revenue from these projects stood at Rs 3,148.22 crore (87.44%) in FY26, Rs 2,709.29 crore (92.84%) in FY25, and Rs 2,286.27 crore (93.74%) in FY24. As of March 31, 2026, the company had completed 80 projects, including complex projects such as the Kachchh Branch Canal Project, the Dudhai Sub Branch Canal Project, and the Parbati Dam Project. It also claims to have experience in executing dams, barrages, canals, micro-irrigation systems, pipeline networks, and water supply projects across different geographical conditions.
• ✓The company’s order book increased from Rs 6,268.97 crore as of FY24 to Rs 7,882.17 crore as of FY25 and Rs 7,953.18 crore as of FY26. As of March 31, 2026, its order book comprised 103 projects across irrigation, water supply, and other infrastructure segments, providing visibility into potential future revenue. The company also states that its projects are sourced from multiple government departments and customers across different geographies.
• ✓The RHP says the company has an in-house design and engineering team comprising 698 qualified engineers and technical personnel as of July 31, 2026. The team supports site assessment, hydraulic and structural design, and project planning. The company uses technologies such as Supervisory Control and Data Acquisition systems, Geographic Information Systems, Global Positioning System technology, AutoCAD, and structural design software for project execution, it states.
• ✓The company claims to follow structured risk management and project selection processes across the project lifecycle. It evaluates customer, project, operational, and execution risks before bidding and during execution. The company also states that it seeks projects with milestone-based payments and escalation clauses to manage cash flows and cost overruns, while using contract management processes to address project-related disputes.
• ✓The company reported stable Return on Capital Employed (ROCE) of 27.13%, 27.64%, and 27.63% in FY26, FY25, and FY24, respectively, while Return on Equity (ROE) stood at 32.24%, 36.96%, and 31.87% in the same period.
• ✓The company has seen a consistent increase in revenue from operations and PAT. Revenue from operations increased from Rs 2,438.91 crore in FY24 to Rs 2,918.29 crore in FY25 to Rs 3,600.25 crore in FY26. PAT increased from Rs 122.00 crore in FY24 to Rs 223.62 crore in FY25 to Rs 286.44 crore in FY26.

Risks

• !The company's trade receivables increased from Rs 156.61 crore in FY24 to Rs 250.17 crore in FY25 and Rs 455.82 crore in FY26. Further, the trade receivables turnover ratio declined from 14.46 times in FY24 to 14.35 times in FY25 and 10.20 times in FY26, indicating slower collection efficiency. Amounts outstanding beyond six months increased to Rs 8.61 crore in FY26 from Rs 0.03 crore in FY25. Delays in recovering receivables could increase working capital requirements and affect cash flows.
• !As of FY26, the company had contingent liabilities of Rs 129.99 crore, representing 14.63% of its net worth of Rs 888.41 crore. If a significant portion of these contingent liabilities materialises, the company may face additional financial obligations, which could adversely affect its cash flows, financial condition and results of operations.
• !The company's debt-to-equity ratio stood at 0.97 times as of FY26, compared with 1.23 times in FY25 and 1.10 times in FY24. High indebtedness could require a significant portion of cash flows to be used for debt servicing and may limit funds available for working capital, capital expenditure and business expansion.
• !The company derives a substantial portion of its revenue from its top 10 customers, which contributed Rs 2,602.84 crore, or 72.30% of revenue from operations, in FY26, Rs 2,454.18 crore, or 84.10%, in FY25, and Rs 2,018.54 crore, or 82.76%, in FY24. The loss of key customers or reduced government project awards could adversely affect revenue and cash flows.
• !The company's business is substantially dependent on projects awarded by state and central government departments. Government departments accounted for Rs 6,288.55 crore (79.07%) of its order book in FY26, Rs 6,714.89 crore (85.19%), in FY25, and Rs 5,499.41 crore (87.72%) in FY24. Revenue from government departments stood at Rs 3,216.62 crore, representing 89.34% of revenue from operations in FY26, compared with Rs 2,355.38 crore or 80.71% in FY25 and Rs 2,115.87 crore or 86.75% in FY24. Any reduction in government infrastructure spending, delays in project approvals or payments, or failure to secure new government contracts could hurt the company's revenue, cash flows and financial condition.
• !The company's operations are significantly concentrated in Gujarat and Madhya Pradesh, which together contributed Rs 2,744.07 crore (76.22% of revenue from operations) in FY26, Rs 2,361.79 crore (80.93%) in FY25, and Rs 1,878.07 crore (77.00%) in FY24. This geographic concentration exposes the company to state-specific regulatory, political, economic, social, and environmental risks. Natural calamities, social unrest, policy changes or disruptions in either state could affect project execution, revenue, and financial performance.
• !The company reported an employee attrition rate of 23.94% in FY26, down from 30.29% in FY25 and 27.52% in FY24. In FY26, 659 employees resigned, compared with 844 in FY25 and 693 in FY24. Junior-level employees accounted for the largest share of attrition at 18.28% in FY26, followed by middle-level employees at 4.51% and senior-level employees at 1.16%. The infrastructure sector requires skilled technical and project management personnel, and continued employee turnover could increase recruitment and training requirements and affect the company's ability to execute existing projects and secure new contracts.
• !The company's business growth depends substantially on its ability to successfully bid for and secure new infrastructure projects, particularly in the irrigation and water supply segment. Its bid success rate declined to 13.53% in FY26 from 21.35% in FY25 and 22.89% in FY24. Continued failure to secure new projects could affect order inflows, future revenue growth, and the company's financial performance.
• !A significant portion of the company's order book is linked to projects under the Jal Jeevan Mission. Such projects accounted for Rs 1,555.01 crore, or 19.54% of the total order book, in FY26. Their contribution was higher in previous years at Rs 2,041.15 crore, or 25.90%, in FY25 and Rs 2,805.40 crore, or 44.75%, in FY24. Any changes in government policy, funding allocation, implementation timelines, or participation by state governments under the scheme could reduce project opportunities or lead to delays and cancellations.
• !The company relies on subcontractors and hired machinery for certain aspects of project execution. Works and labour contract expenses increased to Rs 1,351.17 crore in FY26, accounting for 37.63% of revenue from operations, compared with Rs 867.91 crore (29.74%) in FY25 and Rs 547.73 crore (22.46%) in FY24. Non-performance, delays, inadequate work quality, or regulatory non-compliance by subcontractors could disrupt project execution, increase costs and affect profitability.
• !The company, its directors, and promoters are involved in certain criminal and tax proceedings and non-material civil litigation. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
• !As of FY26, the company had outstanding financial indebtedness of Rs 1,817.71 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.

About LCC Projects

LCC Projects is a multidisciplinary engineering, procurement and construction (EPC) company primarily engaged in irrigation and water supply projects. The company undertakes projects including dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, and water supply schemes. The company has also executed a metro rail project involving the construction of a station, approaches and viaducts, and is currently executing a mining development and operations project. As of FY26, its order book comprised 103 projects. LCC Projects operates across 12 states in India and has experience in executing projects across varied geographical and terrain conditions. The company has also established a manufacturing unit in Jaspur, Gujarat, for producing precast concrete elements used in infrastructure and construction projects. Use of proceeds: The IPO consists of both a fresh issue of shares and an offer for sale (OFS).​ Proceeds from the OFS will go to the respective selling shareholders, whereas the net proceeds from the fresh issue will be utilised for the following purposes:​ Purchase of equipment — Rs 14.69 crore Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company — Rs 180 crore General corporate purposes