LCC Projects IPO

Strengths · 8

• 01Profit has more than doubled in two years, from Rs 122.00 crore in FY2024 to Rs 223.63 crore in FY2025 and Rs 286.44 crore in FY2026.
• 02Sales have grown steadily and are large, from Rs 2,449.79 crore in FY2024 to Rs 2,941.01 crore in FY2025 and Rs 3,639.45 crore in FY2026.
• 03EBITDA has more than doubled over the same period, from Rs 241.37 crore to Rs 519.90 crore.
• 04This is the cheapest of the current mainboard issues on earnings, at about 14.76 times on an EPS of Rs 9.89.
• 05Return ratios are strong, with RoNW of 36.96% and RoCE of 27.64%.
• 06The order book is large and spread out at 103 projects as on 31 March 2026, rather than depending on one or two contracts.
• 07The company widened its reach from eight states to twelve within the year, which reduces dependence on any single state government.
• 08Rs 180 crore of the issue money repays borrowings, and net worth has grown from Rs 382.83 crore in FY2024 to Rs 888.41 crore in FY2026.

Risks · 8

• 01Borrowing is high and has doubled in two years, from Rs 422.30 crore in FY2024 to Rs 860.65 crore in FY2026, which is almost equal to the net worth of Rs 888.41 crore.
• 02The profit margin is thin at 7.66%, which is normal in civil EPC work but leaves little room when a contract runs over budget.
• 03Almost all the customers are state irrigation and water supply departments. Payments from government departments are slow and depend on state budget releases.
• 04This is a tender driven business. Every project has to be won afresh on price, so a full order book today does not protect the margin tomorrow.
• 05The company is young for its size. It was started only in 2017 and is already at Rs 3,639.45 crore of income, and such a fast scale up is hard to manage.
• 06Large civil projects carry execution risk from land acquisition, clearances, monsoon delays and cost overruns, spread now across twelve states.
• 07This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 08Promoter holding falls only from 100% to 89.9%, which means the public float after listing will be small and the shares may trade thinly.

LCC Projects Limited was started in 2017. It is an engineering, procurement and construction company, usually called an EPC company, working in irrigation and water supply.

Its work covers building dams, barrages, weirs and other hydraulic structures, along with canals, pipe distribution networks, lift irrigation works and water supply schemes. In simple terms, it builds the infrastructure that carries water from a source to farms and to households.

As on 31 March 2026 its order book had 103 projects. Its three largest were the Sondwa Lift Micro Irrigation Project, the Sidhi Bansagar Multi-Village Scheme and the Gandhi Sagar 1 Multi-Village Scheme. In the past it has built the Tawa Left Bank Canal, the Parbati Dam Project, the Dudhai Sub Branch Canal Project and the AKOT Lift Irrigation Scheme. By 31 March 2026 it had grown from eight states to twelve, working in Gujarat, Madhya Pradesh, Odisha, Rajasthan, Maharashtra, Uttar Pradesh, Karnataka, Jharkhand, Chhattisgarh, Andhra Pradesh, Himachal Pradesh and Haryana. As on that date it had 2,093 permanent employees.

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