A two-decade-old Ahmedabad-based irrigation and water-supply EPC contractor opens its Rs 427 crore mainboard issue on September 9
A multidisciplinary EPC company focused on irrigation and water-supply infrastructure plans to raise Rs 427.14 crore via a mainboard listing on BSE and NSE.
LCC Projects Ltd is a multidisciplinary engineering, procurement and construction (EPC) company primarily focused on India’s irrigation and water-supply infrastructure segment — a direct play on the government’s push to expand water access and irrigation.
With over two decades of experience, it has executed a wide range of projects including dams, barrages, weirs, hydraulic structures, canals, pipe-distribution networks, lift-irrigation systems and multi-village water-supply schemes.
The business is overwhelmingly EPC-led, contributing approximately 99.8% of revenue from operations in FY26. Beyond its irrigation and water core, LCC has executed metro-rail infrastructure projects and entered the mining development and operations (MDO) segment — giving it optionality to diversify into adjacent, higher-value infrastructure verticals.
It has expanded its presence across 12 states, serving various central and state government agencies, and is headquartered in Ahmedabad with regional offices in Madhya Pradesh, Rajasthan and Odisha.
The order book is the anchor of the story. As of March 31, 2026, LCC had an order book of Rs 79,531.81 million (Rs 7,953 crore) comprising 103 projects — strong multi-year revenue visibility, roughly 2.2x FY26 revenue.
Key ongoing projects include the Sondwa Lift Micro Irrigation Project, the Sidhi Bansagar Multi-Village Water Supply Scheme and the Gandhi Sagar 1 Multi-Village Water Supply Scheme.
Execution capability is a genuine strength. To strengthen delivery, LCC established a precast-concrete manufacturing facility at Jaspur, Gujarat, producing precast components for infrastructure projects, and maintains a fleet of heavy construction equipment.
It uses technologies such as SCADA, WaterGEMS, Water Hammer and STAAD-Pro for design, monitoring and execution — a technically-equipped, integrated EPC operation. The promoter is Maya Arjan Rabari.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 9, 2026 |
| Issue Closes | September 11, 2026 |
| Listing | BSE, NSE (Mainboard) |
| Listing Date | September 17, 2026 |
| Price Band | Rs 139 – Rs 146 per share |
| Face Value | Rs 5 |
| Issue Size | Rs 427.1 crore (Rs 4,271 million) |
| Fresh Issue | Rs 258.0 crore (177 lakh shares) |
| Offer for Sale | Rs 169.1 crore (116 lakh shares) |
| Min. Application | 102 shares (multiples thereafter) |
| Min. Retail Investment | Rs 14,892 |
| Post-Issue Market Cap | Rs 4,229.2 crore |
| Lead Manager | Motilal Oswal Investment Advisors |
| Registrar | KFin Technologies Ltd. |
The issue is majority fresh (Rs 258 crore) with an OFS of Rs 169.1 crore. From the fresh proceeds, LCC will utilise funds for the purchase of equipment, prepayment or repayment of certain outstanding borrowings, and general corporate purposes (capped at 25% of gross proceeds).
The debt-reduction component is positive for a leveraged EPC business, and the OFS portion does not come to the company.
Post-issue, promoter and promoter group shareholding falls from 46.1% to 39.5%, with public shareholding rising to 60.5% — a relatively low post-issue promoter stake worth noting.
Financial Performance
| Particulars (Rs million) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 24,389 | 29,183 | 36,002 |
| EBITDA | 2,660 | 3,782 | 4,816 |
| EBITDA Margin (%) | 10.9 | 13.0 | 13.4 |
| PAT | 1,220 | 2,236 | 2,864 |
| PAT Margin (%) | 5.0 | 7.7 | 8.0 |
| EPS (Rs) | 4.2 | 7.7 | 9.9 |
The financial trajectory is strong and consistent. Revenue from operations grew from Rs 24,389 million in FY24 to Rs 36,002 million in FY26 (up 23.4% in FY26), while PAT more than doubled, from Rs 1,220 million to Rs 2,864 million.
Anand Rathi pegs the FY24–FY26 revenue CAGR at 21.5% and PAT CAGR at 53.2% — genuinely strong compounding.
EBITDA margin improved from 10.9% to 13.4%, and PAT margin from 5.0% to 8.0% — reflecting scale and better project mix.
Return ratios are excellent (FY26 RoNW of 32.2%, RoCE ~27%), and the debt-reduction use of proceeds should ease finance costs (interest was Rs 962 million in FY26).
The main structural watch-items are the elevated leverage and the receivables/working-capital intensity inherent to government EPC. The company has not paid a dividend in the last three fiscals.
Peer Comparison
| Company | Revenue FY26 (Rs mn) | EPS (Rs) | P/E | RoNW (%) | NAV (Rs) |
|---|---|---|---|---|---|
| LCC Projects | 36,003 | 10.4 | 14.8 | 32.2 | 32.7 |
| Vishnu Prakash R Punglia | 8,512 | -12.0 | NA | NA | 50.5 |
| Enviro Infra Engineers | 11,456 | 10.4 | 19.1 | 15.3 | 70.2 |
Price Band Analysis
At the upper band of Rs 146, on FY26 earnings the issue is valued at a P/E of about 14.8x and an EV/EBITDA of 9.61x, for a post-issue market cap of about Rs 4,229 crore (Rs 42,292 million). With a NAV of Rs 32.7 and RoNW of 32.2%, and given the strong order book and earnings growth, Anand Rathi views the valuation as reasonable.
GMP Watch
The LCC Projects IPO GMP ranged from a low of ₹13 to a high of ₹25, and stood at around ₹17–25 in the days around opening.
As always, GMP is unofficial, unregulated and unendorsed.
According to a note by Anand Rathi Research, “the company’s strong order book, improving profitability and established execution capabilities provide a favourable growth outlook.
.”..However, the business remains exposed to government project dependence, customer and geographical concentration, project execution risks and relatively high leverage, warranting a balanced valuation outlook.”
….At the upper price band, the company is valued at 14.8x FY26 P/E and 9.61x FY26 EV/EBITDA, implying a post-issue market capitalization of ₹42,292 million. Given the strong order book, healthy earnings growth and favourable long-term prospects for irrigation and water infrastructure, we believe the valuation is reasonable. Accordingly, we recommend a ‘Subscribe – Long Term’ rating for the issue.”
Risks to Consider
Government dependence and customer concentration is the headline risk. Revenue from the top 10 customers was 72.30% in FY26 (84.10% in FY25, 82.76% in FY24), and the business serves central and state government agencies — so any loss of a key customer, budget shift or payment delay could hit revenue, cash flows and financial condition.
Receivable risk is structural. An inability to collect outstanding receivables in a timely manner — a recurring feature of government EPC — could adversely affect the business, cash flows and financial condition, and pressure working capital.
High leverage is a genuine concern. The company has a significantly higher level of indebtedness and leverage than its listed industry peers, which increases financial risk and could constrain operational flexibility and competitive position — though the fresh-proceeds debt repayment mitigates part of this.
Contingent liabilities, if they materialise, could adversely affect results, cash flows and financial condition — worth scrutinising in the RHP.
Legal proceedings involving the company, subsidiaries, promoters and directors are outstanding, and any adverse decision could affect the business.