LCC Projects’ Tender Win Rate Fell to 13.53% in FY26

LCC Projects’ tender win rate fell to 13.53% in FY26 from 21.35% in FY25 and 22.89% in FY24. The company submitted 170 bids and won 23 projects worth Rs 3,344.984 crore, excluding goods and services tax, compared with Rs 4,257.828 crore of awards in FY25.

Why did LCC Projects’ tender win rate fall to 13.53% in FY26?

LCC Projects’ FY26 tender win rate fell because 23 awards resulted from 170 bids, compared with 19 awards from 650 bids in FY25 and 19 awards from 83 bids in FY24. LCC Projects defines bid success rate as the number of projects awarded divided by the number of bids made during the relevant period. The FY26 rate was 7.82 percentage points below FY25 and 9.36 percentage points below FY24.

The bid count changed materially across the three fiscal years. LCC Projects submitted 170 bids in FY26, which was more than twice the 83 bids submitted in FY24 but 480 fewer than the 650 bids submitted in FY25. The number of awards increased by four from FY25 and FY24, but that increase did not match the rise in bids from FY24, resulting in the lower FY26 conversion rate.

What changed in the value of LCC Projects’ tender pipeline?

LCC Projects pursued a substantially larger value of tenders in FY26, but its award value declined. The company bid for Rs 59,723.390 crore of work in FY26, excluding GST, against Rs 25,392.483 crore in FY25 and Rs 16,602.620 crore in FY24. However, FY26 awards of Rs 3,344.984 crore were Rs 912.844 crore below FY25 awards and Rs 1,050.133 crore below FY24 awards.

An award can add to the order book, while a bid does not itself create revenue or an unexecuted project balance. LCC Projects defines its order book as the estimated contract value of the unexecuted portion of existing projects. Its standalone order book closed at Rs 7,953.181 crore on March 31, 2026, compared with Rs 7,882.171 crore on March 31, 2025, an increase of Rs 71.010 crore.

The FY26 order-book movement reflected Rs 3,344.984 crore of awards and Rs 126.839 crore of excess, escalation and claims, offset by Rs 3,400.813 crore of revenue from orders awarded. In FY25, awards were higher at Rs 4,257.828 crore, while revenue from orders awarded was Rs 2,854.103 crore and projects worth Rs 411 crore were transferred or withdrawn. The Shilma bulk-water-supply design-build-operate contract was transferred to LCC Projects’ joint-venture partner, Sai Eternal Foundation, in FY25.

Why does tender conversion matter to LCC Projects’ business?

Tender conversion matters because irrigation and water-supply projects generated 87.44% of LCC Projects’ FY26 revenue from operations. Revenue from that segment was Rs 3,148.224 crore out of total FY26 revenue from operations of Rs 3,600.252 crore. The company states that it bids continuously for projects in the irrigation and water-supply segment, where awards follow competitive bidding and prescribed qualification criteria.

The segment remained the principal source of the order book as well as revenue. Irrigation and water-supply projects represented Rs 6,621.431 crore, or 83.26%, of the Rs 7,953.181 crore order book at March 31, 2026. That share was lower than 89.95% at March 31, 2025, while the segment’s revenue share declined from 92.84% in FY25 and 93.74% in FY24 to 87.44% in FY26.

Renewable-energy projects accounted for Rs 241.567 crore, or 6.71%, of FY26 revenue and Rs 306.888 crore, or 3.86%, of the March 31, 2026 order book. These projects were absent from the FY25 order book. Even with that addition, LCC Projects expects irrigation and water-supply contracts to continue accounting for a high percentage of its revenue from operations.

What factors could affect LCC Projects’ future bid wins and project returns?

LCC Projects’ future bid wins depend on tender eligibility, technical qualifications, financial scores, pricing, financing and commercial terms. The company states that price is often the deciding factor in competitive bidding for irrigation and water-supply projects. A lower price can secure an award, but it can also expose LCC Projects to cost overruns if materials, labour, fuel, subcontracting or other execution costs exceed the estimates used in its bid.

Government departments accounted for Rs 3,216.617 crore, or 89.34%, of LCC Projects’ FY26 revenue from operations and Rs 6,288.550 crore, or 79.07%, of its March 31, 2026 order book. Government policies, fiscal allocations, internal approval processes, pre-qualification criteria and payment timing can affect the volume of available tenders and the time between an invitation to bid and a contract award. Central assistance under the Pradhan Mantri Krishi Sinchayee Yojana, the Government of India’s irrigation programme, exceeded Rs 64,407 crore over the past decade, according to the ICRA Report cited by LCC Projects.

Where LCC Projects does not independently meet a tender’s eligibility requirements, it may seek a project-specific joint venture or consortium. The company states that it may not find a suitable counterparty on acceptable terms, which can prevent participation in a particular tender. LCC Projects also incurs costs before bidding to assess topographical, hydrological and geological conditions, and it cannot recover those costs when a bid is unsuccessful.

Tender processes may also involve changes to eligibility criteria, delayed awards and legal challenges by unsuccessful bidders. LCC Projects reported no unexpected tender-award delays or eligibility-criteria changes in FY24, FY25 or FY26, and no substantial expenditure defending litigation over project awards during those periods. A delayed award could require resources to remain unallocated, while an unsuccessful legal outcome could lead to termination of an awarded contract.

Conclusion

LCC Projects’ FY26 figures show that greater tender value did not translate into higher-value awards. The company’s bid value rose to Rs 59,723.390 crore, while its award value fell to Rs 3,344.984 crore and its tender win rate declined to 13.53%. Because irrigation and water-supply work accounted for 87.44% of FY26 revenue and 83.26% of the March 31, 2026 order book, tender outcomes remain central to the company’s project pipeline.

The next measure to watch is whether new awards replace work executed from the Rs 7,953.181 crore order book, after LCC Projects recorded Rs 3,400.813 crore of revenue from orders awarded in FY26. The company expects irrigation and water-supply contracts to remain a high share of revenue, leaving government tender availability, qualification rules, competitive pricing and the availability of joint-venture partners as disclosed factors affecting future awards.