LCC Projects Reports Strong Q2 Growth

Revenue grew 34% YoY to Rs 886 crore; PAT rose 58% YoY to Rs 77 crore.

Reader Takeaway: Strong order visibility drives momentum, but watch for working capital cycle normalization in coming quarters.

What just happened

LCC Projects delivered a strong performance for the quarter ended September 30, 2026. The company saw significant margin expansion, with EBITDA margins reaching 15.5% compared to 14.2% in the year-ago period. This operational efficiency contributed to a 58% jump in profit after tax.

Why this matters

The company’s order book, currently at Rs 8,154 crore, provides a revenue-to-order-book ratio of 2.21x, offering clear visibility for future quarters. Management has reiterated a growth guidance of 20% or more for the full fiscal year, aiming for revenue in the range of Rs 4,300-4,400 crore.

The backstory

Following its recent IPO, LCC Projects has strengthened its balance sheet, with net worth climbing to Rs 1,276 crore. The company continues to focus heavily on the water and irrigation sector, which constitutes 80% of its current revenue mix.

Risks to watch

Investors should note the uptick in working capital days to 123 days, up from the historical 90-100 day range. While management attributes this to a timing mismatch in milestone billing and expects normalization by year-end, it remains a key metric for cash flow health. Additionally, cash balances are partially restricted by bank guarantee requirements.

What to track next

The company is currently L1 in projects worth Rs 1,583 crore, which are expected to convert into formal work orders within the next three weeks. Monitoring the conversion of this pipeline and the adherence to the 14-15% margin guidance will be crucial for shareholders.