Founded in 2004, LCC Projects is an EPC (engineering, procurement, and construction) infrastructure contractor building large-scale irrigation canals, dams, and municipal water pipelines for state governments across India through an integrated in-house engineering and heavy equipment setup. The company relies on public-sector turnkey contracts backed by proprietary equipment and in-house hydraulic modeling teams to execute water security projects across regional command areas.
At a glance
| |
|---|
| Scale | Revenue grew from ₹780.90 cr (FY22) to ₹2,438.91 cr (FY24) and ₹1,468.11 cr (H1 FY25) |
| Business mix | Irrigation and water supply 94.63%, mining and rail 5.37% (H1 FY25) |
| Market position | Leading market share in Indian water EPC, fastest-growing Gujarat corporate |
| Footprint | Pan-India execution across 11 states, anchored in MP and Gujarat |
| Customer concentration | Top 10 government clients deliver 90.82% of revenue (H1 FY25) |
| Revenue model | Milestone EPC, item-rate, and turnkey contracts with input escalation clauses |
| The offer | ₹320 cr fresh issue plus 22.94M OFS shares by Promoters Arjan Rabari & Lalji Ahir |
Business segments
Two operating business engines where core water EPC drives over 90% of turnover while non-water civil works provide adjacent diversification.
1. Water infrastructure: building canals, dams, and multi-village pipelines
Executing heavy hydraulic structures and municipal drinking distribution networks for government bodies generates almost 95% of company revenue.
- Pipeline and command breadth - constructed over 20,000 km of underground pipelines serving more than 200,000 hectares of command area (agricultural land irrigated by a canal system) for Sardar Sarovar Narmada Nigam Limited.
- Mega turnkey water schemes - delivering the ₹1,386.49 cr Sidhi Bansagar and ₹1,049.00 cr Gandhi Sagar 1 multi-village drinking projects bundled with 10-year operation and maintenance mandates.
- Micro-irrigation lifting scale - executing the ₹1,395.41 cr Sondwa Lift Micro Irrigation project covering 50,000 hectares for the Narmada Valley Development Authority to pump pressurized water to farm fields.
- Dam and barrage track record - built composite gravity dams including River Parbati (172.54 MCM capacity) and Madia Dam on River Bina (270.10 MCM capacity) to supply regional reservoirs.
- Pipeline-dominated order pipeline - accounts for ₹6,484.90 cr or 88.26% of the total unexecuted order book, securing visible multi-year construction activity.
2. Diversified civil works: mining excavation, roads, and metro transit
Adjacent civil engineering contracts and site excavation services provide non-irrigation diversification and represent over 5% of turnover.
- Long-term coal extraction contract - operates a 7-year MDO (mine developer and operator) contract at SECL's Bishrampur Amera open-cast mine covering overburden removal (clearing surface soil and rock) and coal cutting valued at ₹669.33 cr.
- Urban transit execution - built four elevated metro stations for Gujarat Metro Rail Corporation Phase-I and an 11.6 km viaduct for the Surat Metro Rail Project.
- Industrial infrastructure tunnel work - executed utility tunnel infrastructure for GIFT City domestic tariff area developments valued at ₹22.58 cr.
- Diversified civil order backlog - accounts for ₹862.52 cr or 11.74% of the total unexecuted order book to build out non-water construction references.
In-house engineering teams backed by heavy machinery fleets
Controlling design engineering and maintaining an owned heavy equipment base lowers third-party plant hiring costs and speeds up site mobilization.
- In-house technical design team - employs 496 qualified engineers deploying SCADA (supervisory control and data acquisition automation), WaterGEMS, STAAD.Pro, and GIS (geographic information systems) mapping for hydraulic and structural design.
- Mechanized plant ownership - maintains an owned equipment fleet valued at ₹125.43 cr comprising heavy excavators, transit mixers, crushers, and diesel generator sets to execute heavy earthworks internally.
- Concentrated pipe procurement - procures 83.63% of materials from its top 10 suppliers, led by Welspun Corp (38.42%) and ArcelorMittal Nippon Steel (22.26%) for specialized ductile iron and steel pipelines.
Turnkey EPC milestone payments tied to inflation pass-through
- Structured output billing - recognizes contract revenue via the output method based on technical surveys and agreed construction milestones, aligning revenue with physical site completion.
- Inflation buffer protection - embeds statutory and raw material price escalation clauses in government tenders to pass steel, cement, and fuel cost spikes directly to clients.
- Contractual retention lock-in - clients hold 5% to 10% of contract value as retention money or bank guarantees across 1-to-2-year defect liability periods before releasing final payments.
- Multi-year maintenance tail - bundles multi-village drinking schemes with 5-to-10-year operational maintenance mandates after commissioning to generate steady follow-on cash flows.
Capturing central river-linking and state drinking water outlays
Rising central budgetary allocations for piped rural drinking water and national dam overhauls drive long-term bidding pipelines.
- Expanding national water spend - Indian irrigation capital expenditure is projected to grow at a 10.9% CAGR between FY23 and FY28, supported by the PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) outlay of ₹93,068.6 cr and the Jal Jeevan Mission.
- Dam rehabilitation headroom - India's national inventory covers 6,281 large dams with 3,789 aged over 25 years, creating structural refurbishment demand under the ₹10,211 cr DRIP (Dam Rehabilitation and Improvement Project) Phase II and III programs.
- Direct EPC competitor set - competes against Enviro Infra Engineers, Vishnu Prakash R Punglia, and JWIL Infra for central and state government hydraulic tenders.
Ahmedabad parent operating joint ventures and non-core subsidiaries
Parent company partners in project-specific consortiums while housing non-infrastructure operating units.
| Entity | Stake | What it adds |
|---|
| DOM'S Delicious Pvt Ltd | 95.00% | Operates restaurant chains and cafes; carried negative net worth of ₹(2.42)M in FY24 |
| LCC Engineering Pvt Ltd | 60.00% | Incorporated in August 2024 for solar, hydro, and SCADA transmission networks |
| LCC Minechem Pvt Ltd | 51.00% | Mineral processing and trading subsidiary; generated ₹6.83 cr revenue in FY24 |
| LCC-VKMCPL JV | 80.00% | Joint operation for Mahi River lift irrigation pipeline project; 20% held by VKMCPL |
| LCC Sai KSIPL JV | 55.00% | Joint operation for river infrastructure projects; generated ₹101.55 cr revenue in FY24 |
| Gramang Hydel Projects LLP | 20.00% | Associate entity developing a 9 MW hydro electric plant in Himachal Pradesh |
Debt prepayment and fleet additions fund working capital growth
- Excavation equipment additions - deploying ₹14.91 cr to purchase 4 SANY SKT105S dump trucks (₹10.60 cr) and 1 SANY SY870LC-10HD hydraulic excavator (₹4.31 cr) to expand in-house mining and earthmoving fleets.
- De-leveraging balance sheet - allocating ₹220.00 cr to prepay high-cost working capital and equipment facilities against ₹1,379.91 cr total borrowings to lower finance costs.
- Ownership secondary sale - Promoters Arjan Rabari and Lalji Ahir are selling 22,940,000 shares through an offer for sale, with a provision for a pre-IPO placement of up to ₹64 cr.
Worth keeping in mind
- Promoters Arjan Rabari and Lalji Ahir have extended uncompensated personal guarantees covering ₹1,348.58 cr of company credit lines.
- The unexecuted order book metric of ₹7,347.42 cr excludes price escalations and scope alterations, differing structurally from Ind AS revenue accounting.
- Fiscal 2024 reported net profit includes a one-off exceptional item expense of ₹35.52 cr.
- Multiple subsidiaries, joint ventures, and associate Gramang Hydel Projects engage in overlapping business lines without formal non-compete agreements.
- Operating cash flows faced significant working capital absorption of ₹(1,772.65)M in H1 FY25 and ₹(488.23)M in FY23.