Highlights
| Issue Size – 2,92,56,232 shares | Issue Open/Close – 9 Sep / 11 Sep, 2026 |
| Price Band (Rs.) 139 – 146 | Issue Size (Rs.) – 4,270 mn |
| Face Value (Rs) 5 | Lot Size (shares) – 102 |
LCC Projects Limited (LPL) incorporated in 2017, is an engineering, procurement and construction (EPC) company in the irrigation and water supply projects segment from Gujarat. Over a period of two decades, they 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, LPL 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.
Out of the total proceeds of Rs. 4,270 mn, Rs. 1,800 mn would go towards prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company. ~Rs. 147 mn would go towards purchase of equipment. ~Rs. 633 mn would go towards general corporate purpose. Additionally, Rs. 1,690 mn going towards promoter selling shareholders of the company.
Key Highlights
- Agriculture and allied activities form an integral part of the Indian economy and currently, ~18 pct of India’s GVA is contributed by this sector. India, possessing ~4 pct of the world’s water resources supports a population of 1.4 bn. Limited water resources for agricultural activities, coupled with erratic monsoons and change in weather patterns, intensifies the need for efficient irrigation practices so as to ensure reduction of water stress in the country.
- LPL uses latest technologies such as SCADA, water gems, water hammer and Staad-pro (used in structural design) for various functions such as design planning and for design database, for mapping and analysing topographic data amongst others. This strategy reduces reliance on any single market or customer.
- LPL’s current orderbook stood at Rs. 79,532 mn (83.26 pct Irrigation and water supply projects and 16.74 pct YoY) which is 2.2x of FY26 provides near term visibility. Irrigation and water supply projects form the largest part of their order Book, but it has different components which ensure that their order book continues to remain diversified.
- The company aims to reduce credit risk in two ways. First, by collecting payments at different stages of the project upon the completion of various project milestones. Second, through escalation clauses in contracts that help them pass cost overruns on to their customers.
- LPL’s key growth strategies include (i) To Strengthen presence in India by expanding geographical footprint (ii) Diversify and optimize project mix and cater to large and more complex projects (iii) Continue to invest in technology infrastructure to enhance in-house design and engineering, and project execution capabilities (iv) Continue to focus on efficient cost management in relation to project execution (v) Grow a highly skilled and motivated workforce and strengthening equipment base.
- The sales of the company have grown by 21.5 pct CAGR over FY24-26 and EBITDA/profit has grown 46.8 pct CAGR/53.2 pct CAGR over same year. In FY26 the company reported sales of Rs. 36,003 rose 23.4 pct YoY. EBITDA of the company rose 29.6 pct YoY to Rs. 5,199 mn. In FY26 the company posted profit of Rs. 2,864 mn, which increased 28.1 pct YoY.
Key Risk
- LPL operations are geographically concentrated in the states of Gujarat and Madhya Pradesh. Any localized social unrest, natural calamities, etc., could have material adverse effect on business and financial operations.
- A significant portion of LPL’s order book is derived from Jal Jeevan Mission projects, and any change in related Government policy may adversely affect their business.
- The execution of projects is subject to fluctuations due to seasonal; climatic and other factors and any such fluctuations may adversely affect LPL business.
Financial Performance
| Particulars (Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY |
| Sales | 24,389 | 29,183 | 36,003 | 21.5% | 23.4% |
| EBITDA | 2,414 | 4,010 | 5,199 | 46.8% | 29.6% |
| EBITDA margin % | 9.90% | 13.74% | 14.44% | ||
| Profit | 1,220 | 2,236 | 2,864 | 53.2% | 28.1% |
| Profit margin % | 5.00% | 7.66% | 7.96% | ||
| Debt to Equity | 1.1 | 1.23 | 0.97 | ||
| ROE | 31.87% | 36.96% | 32.24% | ||
| ROCE | 27.63% | 27.64% | 27.13% |
Source: – RHP.
Peer Comparison based on FY26 Financials.
| Particulars (Rs. mn) | LCC Projects | VPRPL | Enviro Infra |
| Sales | 36,003 | 8,512 | 11,456 |
| EBITDA | 5,199 | -818 | 3,104 |
| EBITDA Margin % | 14.44% | -9.62% | 27.10% |
| Profit/Loss | 2,864 | -1,501 | 1,884 |
| Proft/Loss Margin % | 7.96% | -17.64% | 16.44% |
| ROE | 32.24% | -23.83% | 15.28% |
| ROCE | 27.13% | -8.08% | 17.26% |
Source: – RHP.
Valuation
LCC Projects Limited is India’s leading construction company primarily involved in Infrastructure development projects of the Government. LCC has successfully completed construction of Dams, barrages, Weir, Hydraulic structures, Metro, industrial, infra, Canals including structures and Pipe Distribution networks, lift irrigation work and water supply projects including electromechanical elements, laying underground pipelines, road works, building works and various other infrastructure development projects. At the upper end of the price band of Rs. 146, the issue is priced at an PE of 14.8x its FY26 post issue capital. The issue appears to be fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
