LCC Projects

Founded in 2017, LCC Projects has rapidly evolved into a significant player in the Indian infrastructure space, specifically within the water management domain. Over the last few years, the company has transitioned from a regional player to a multi-state operator, expanding its footprint to 11 states including Gujarat, Madhya Pradesh, Odisha, Rajasthan, Maharashtra, Uttar Pradesh, Karnataka, Jharkhand, Chhattisgarh, Himachal Pradesh, and Haryana.

The company's core business model revolves around the execution of complex EPC projects. Its service portfolio includes the construction of hydraulic structures such as dams, barrages, weirs, and lift irrigation works, as well as the implementation of large-scale water supply schemes and pipe distribution networks.

LCC Projects has a proven track record of completing critical infrastructure, having successfully delivered 68 projects as of September 2024. Notable achievements include the Sondwa Lift Micro Irrigation Project, Sidhi Bansagar Multi-Village Scheme, and the Gandhi Sagar 1 Multi-Village Scheme, demonstrating their capacity to handle high-value government contracts.

The operational scale of the company is reflected in its significant revenue growth and expanding geographical reach. By diversifying across various state governments, LCC Projects has mitigated the risk associated with dependency on a single state's budgetary allocations.

The company is led by its promoters, Arjan Suja Rabari, Laljibhai Arjanbhai Ahir, and Maya Arjan Rabari, who maintain a substantial stake in the entity, ensuring strong promoter alignment with the company's long-term growth trajectory.

LCC Projects is launching a Mainboard IPO to raise approximately ₹427.14 Crores. The issue is structured as a combination of a fresh issue of ₹258 Crores and an Offer for Sale (OFS) of approximately 1,15,85,000 equity shares. The price band is set between ₹139 to ₹146 per share, with a minimum retail lot size of 102 shares. The IPO is scheduled to be open from September 9, 2026, to September 11, 2026, with listing on the BSE and NSE on September 17, 2026.

The proceeds from the fresh issue are earmarked for strategic growth and liability management. Specifically, the company intends to utilize ₹180 Crores for the prepayment or repayment of outstanding borrowings and ₹14.69 Crores for the purchase of new equipment, indicating a focus on improving the balance sheet and enhancing operational capacity.

Financial performance has been robust over the last three years. Revenue grew from ₹2,449.79 Crores in FY24 to ₹3,639.45 Crores in FY26. Similarly, the Profit After Tax (PAT) showed a strong upward trend, increasing from ₹122.0 Crores in FY24 to ₹286.44 Crores in FY26, reflecting improved operational efficiency and scale.

From a valuation perspective, the company reports a Basic EPS of ₹10.42 for FY26. While a specific P/E ratio was not provided for the company, its high ROE of 32.24% and ROCE of 27.13% suggest a high-quality return on capital compared to many EPC peers.

Key strengths include a diversified geographical presence across 11 states and a strong growth trajectory in both top-line and bottom-line figures. However, investors should note the debt-to-equity ratio of 0.97 and the fact that a portion of the issue is an OFS, which involves promoters offloading shares.

Overall, LCC Projects presents a fundamentally strong case with impressive profitability and growth metrics. Investors may view this as a long-term play on India's water infrastructure development, though they should weigh the valuation against the current market sentiment for EPC firms.