LCC Projects Limited, a Gujarat-based engineering firm specializing in irrigation and water supply infrastructure, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company, which executed projects across 12 states, aims to raise funds primarily for debt repayment and equipment purchase.

About the Company

Incorporated in 2017, LCC Projects operates as a multidisciplinary Engineering, Procurement and Construction (EPC) company. Its core business involves constructing dams, barrages, weirs, hydraulic structures, canals, and pipe distribution networks. The company has diversified into metro rail projects and mining development operations. It also manufactures precast concrete solutions through a unit in Jaspur, Gujarat. As of FY2026, 89.34% of its revenue was derived from government departments, with Gujarat and Madhya Pradesh contributing approximately 76.22% of total revenues.

Financial Performance

The company demonstrated consistent growth in revenue and profitability over the last three fiscal years. Revenue from operations grew from ₹2,438.91 crore in FY2024 to ₹3,600.25 crore in FY2026. Net profit after tax (PAT) expanded significantly from ₹122.00 crore to ₹286.44 crore over the same period.

Key financial ratios for FY2026 include a Return on Equity (RoE) of 32.24% and a Return on Capital Employed (RoCE) of 27.13%. The debt-to-equity ratio stood at 0.97x as of March 2026.

Why the Company Is Raising Funds

The identified use of proceeds includes ₹180.00 crore for the prepayment or repayment of outstanding borrowings. An additional ₹14.69 crore is allocated for the purchase of specialized heavy construction machinery, including dump trucks and hydraulic excavators. The balance amount will be utilized for general corporate purposes.

Business Strengths

LCC Projects highlights its market leadership in the irrigation and water supply EPC segment in India. The company maintains a robust order book of ₹79,531.81 million as of March 2026, up from ₹62,689.68 million in FY2024. It possesses in-house design capabilities supported by 698 qualified engineers. The promoters bring extensive industry experience, with leadership tenures exceeding 10 years for many team members.

Key Risks

The company faces significant dependence on government projects, which constituted 89.34% of revenue in FY2026. High customer concentration is evident, with the top 10 customers accounting for 72.30% of revenue. Geographic concentration risk exists, with Gujarat and Madhya Pradesh comprising over 76% of sales. Other material risks include a high debt-to-equity ratio compared to peers, significant unbilled revenue of ₹5,348.28 million, and a declining bid success rate of 13.53% in FY2026.

Important IPO Dates

Offer Details

The IPO consists of a fresh issue component only, with no Offer for Sale (OFS). The price band, lot size, and total issue size are not yet disclosed in the DRHP.

Bottom Line

LCC Projects presents a strong financial trajectory with expanding margins and a large order book in the critical water infrastructure sector. However, investors must weigh these growth metrics against high government dependency, elevated leverage, and working capital intensity.