LCC Projects Q2 FY27 Earnings Call — Analysis (NSE: LCCPROJECT)
LCC Projects delivered strong Q2FY27 revenue growth of 34% YoY to ₹886 Cr with EBITDA margins expanding to 15.5%, backed by an ₹8,154 Cr order book and ₹4,300–₹4,400 Cr full-year revenue guidance.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹886 Cr ( +34.0% YoY ) . New guidance — FY27 lcc projects fy27 revenue ₹4300 Cr – ₹4400 Cr . New story: Asset-Light EPC Operating Model .
Results
Revenue ₹886 Cr +34% YoY; EBITDA margin expanded 130bps to 15.5%; PAT rose 58% YoY to ₹77 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹886 Cr | +34.0% | yoy · Q2FY27 · vs ₹661 Cr in Q2FY26 |
| EBITDA | ₹137 Cr | +45.7% | yoy · Q2FY27 · vs ₹94 Cr in Q2FY26 |
| EBITDA Margin | 15.5% | +130bps | yoy · Q2FY27 · vs 14.2% in Q2FY26 |
| Net Profit (PAT) | ₹77 Cr | +57.1% | yoy · Q2FY27 · vs ₹49 Cr in Q2FY26 |
| PAT Margin | 8.6% | +130bps | yoy · Q2FY27 · vs 7.3% in Q2FY26 |
| Order Book | ₹8,154 Cr | point_in_time · Q2FY27 · as of Sep 30, 2026 | |
| L1 Pipeline | ₹1,583 Cr | point_in_time · Q2FY27 · orders awaiting final work award | |
| Net Worth | ₹1,276 Cr | +42.9% | point_in_time · Q2FY27 · vs ₹893 Cr as of Mar 31, 2026 |
| Working Capital Days | 123 days | +24 days | sequential · Q2FY27 · vs 99 days in FY26 |
Guidance
Management guided for FY27 revenue of ₹4,300–₹4,400 Cr (~20% growth), sustainable EBITDA margins of 14–15%, and year-end order book of ~₹10,000 Cr.
What management committed to
- LCC Projects will achieve full-year revenue of near about Rs. 4300 crores – Rs. 4400 crores in FY27. — Rs. 4300 crores – Rs. 4400 crores, FY27
- LCC Projects will maintain EBITDA margin around 14% - 15%. — 14% - 15%, FY27
- LCC Projects targets an order book of around Rs. 10,000 crores by March 2027. — Rs. 10,000 crores, Q4FY27
- LCC Projects will secure full-year order inflows of around Rs. 6,000 crores in FY27. — Rs. 6000 crores, FY27
- LCC Projects will maintain full-year net working capital days in the range of 90 to 100 days. — 90 to 100 days, FY27
- LCC Projects will invest around Rs. 50 crores – Rs. 60 crores in full-year FY27 capex (Rs. 30 crores in H2). — Rs. 50 crores – Rs. 60 crores, FY27
Key themes
Water infra scale-up and margin expansion
How the narrative shifted
- Water Infra Opportunity and Dominance: Management positions water infrastructure (irrigation, Jal Jeevan Mission, river linking) as a massive structural growth driver where its technical capabilities provide high barrier to entry.
- Private Client Mix Expansion: LCC is actively scaling its higher-margin private sector industrial client share from 10-20% towards 35% with marquee clients like Adani, Reliance, and Tata.
- Asset-Light EPC Operating Model: The company operates an asset-light contracting model requiring limited capex (₹50-60 Cr/yr) and avoiding developer/PPP risk to protect return ratios.
- Precast Adoption for Labor Management: Deploying owned and on-site precast plants to offset industry-wide labor shortages and de-risk project execution timelines.
Operational commentary
- Order inflow in H1FY27 reached ₹1,641 Cr, taking the total order book to ₹8,154 Cr (2.21x FY26 revenue visibility).
- Current active landmark project execution includes Sondwa Lift Irrigation (₹1,395 Cr), Sidhi Bansagar MP (₹1,400 Cr), Gandhi Sagar (₹1,049 Cr), and Bishrampur Mining Chhattisgarh.
- Bidding pipeline is strong with ₹12,000 Cr bids already submitted across Chhattisgarh, Gujarat, Odisha, and UP, and another ₹15,000–₹20,000 Cr planned by March 2027.
- Diversifying customer mix with private sector share targeted to reach 35% over time from 20% currently, working with private clients like Adani, Reliance, and Tata for industrial water requirements.
- To mitigate labor shortages, the company set up a precast factory in Ahmedabad and site-based precast setups to lower manual dependency.
Analyst Q&A
Q. Drivers of higher Q2 EBITDA margin and long-term sustainability given revenue mix changes.
Management explained margins benefited from asset-light operations, procurement bargaining power from scale, faster execution, and higher-margin project mix; guided 14–15% as sustainable baseline.
Q. Strategy and active orders in new growth areas like data center and nuclear water requirements.
Clarified that focus is strictly on water supply/management rather than civil structures; currently executing one private thermal power water order from Adani with no data center orders in hand yet.
Q. Reasons behind spike in receivables to ₹674 Cr and working capital days to 123 days.
CFO stated receivables spiked due to heavy milestone billing at September month-end which gets certified and collected in 30–45 days, with substantial collections already completed in October.
Q. Details on cash balance of ₹535 Cr vs debt of ₹885 Cr and rationale for not prepaying debt.
CFO explained that cash balance includes temporary IPO proceeds being deployed per stated objects in October, and ₹290 Cr is encumbered as fixed deposit margin for bank guarantees.
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