LCC Projects Limited Wins ₹151.57 Crore Gujarat Water Contract

LCC Projects Limited has received a ₹151.57 crore, excluding GST, Acceptance of Tender for a Gujarat water-supply project that requires 24 months of construction and 10 years of operations and maintenance. The award adds a long-duration infrastructure assignment in the company’s home state and covers water transmission from Machhu-I Dam to Triveni Thanga Reservoir and nearby villages.

What contract has LCC Projects won in Gujarat?

LCC Projects has received an Acceptance of Tender from the Office of the Executive Engineer, Sauni Yojana Division, Rajkot, Government of Gujarat, for an engineering, procurement and construction contract valued at ₹151.57 crore excluding GST. The company disclosed the development to stock exchanges on October 16, 2026.

The assignment involves supplying water from Machhu-I Dam to Triveni Thanga Reservoir and several villages in Wankaner and Chotila talukas. The disclosed scope includes the construction of a water-transmission system and associated infrastructure required to deliver water along this route.

The award is an EPC contract, which places responsibility for engineering, procurement and construction with LCC Projects. The company has been given 24 months to complete the construction component. The disclosure does not specify the length of the transmission system, pipe specifications, number of pumping stations, or the division of contract value between construction and maintenance.

The tender acceptance was issued by a domestic government entity. LCC Projects said the transaction is not a related-party transaction, and that the formal agreement will be executed under the applicable tender conditions.

How long will LCC Projects work on the water project?

LCC Projects will have 24 months for construction, followed by a 10-year obligation to operate and maintain the commissioned water-supply system. This means the company’s role will continue after the physical infrastructure is handed over.

The operations and maintenance clause is a material part of the assignment because it extends the company’s responsibilities beyond the EPC phase. Under the announced scope, LCC Projects will remain responsible for the running and upkeep of the completed system for a decade after commissioning.

The company has not disclosed a construction start date, milestone schedule, payment terms, or a separate value for the maintenance period. It has also not provided an expected revenue-recognition schedule. Those details may depend on the final contract agreement and tender conditions.

Why is the Sauni Yojana order significant for LCC Projects?

The Sauni Yojana award gives LCC Projects an infrastructure contract with both execution and long-term service components. The company’s stated business activities include roads and highways, bridges, irrigation and mining projects, commercial buildings, toll collection, and highway operations and maintenance. The Gujarat assignment is therefore consistent with its infrastructure execution and maintenance activities.

The project is also located in Gujarat, where the company has disclosed other recent orders. Its announcements page recorded an order from Reliance Industries on September 26, 2026, and a letter of commitment from the same client on October 9, 2026. Separately, reports said it received a ₹62.32 crore civil-work letter of commitment from Reliance Industries for a GIS substation in Jamnagar.

The Sauni Yojana contract is larger than the ₹62.32 crore Jamnagar civil-work commitment cited in recent disclosures. However, the two assignments have different clients, scopes and contractual status, so their revenue timing and profitability cannot be directly compared from the available information.

The tender acceptance also follows LCC Projects’ reported status as lowest bidder for the ₹653.34 crore Chhoti Kalisindh Medium Irrigation Project on September 24, 2026. Being named the lowest bidder and receiving a tender acceptance are different stages in the award process, and the Gujarat water order is specifically supported by an Acceptance of Tender.

How did LCC Projects shares react to the contract announcement?

LCC Projects shares reached an intraday high of ₹138.52 on October 19 after the Gujarat order was reported, according to the information provided. A market snapshot dated October 16 showed the stock at ₹134.15 at the next-day close, down 1.47%.

These two data points indicate that the share price moved during the period around the announcement, but they do not establish that the contract alone caused the movement. Stock prices can be influenced by broader market conditions, trading activity, company-specific announcements and investor views on the execution outlook.

For investors, the disclosed ₹151.57 crore value is the clearest financial measure currently available. The order value excludes GST, while the source does not disclose LCC Projects’ order book, annual revenue, expected margins, funding requirements, or the share of work likely to be subcontracted. As a result, the immediate financial contribution cannot be quantified from the announcement alone.

The key operational consideration will be delivery over the 24-month construction period and adherence to the 10-year maintenance commitment. The project links a dam, reservoir and villages across two talukas, making execution dependent on the construction of the required transmission infrastructure and subsequent operating performance.

What should investors monitor after the tender acceptance?

Investors should monitor execution of the formal agreement because LCC Projects has said the contract will be signed in accordance with tender conditions. The Acceptance of Tender confirms the award decision, while the detailed agreement could provide further information on work milestones, payment terms, mobilisation and technical specifications.

Updates on the start of construction, project progress and maintenance arrangements will be relevant because the assignment spans both an EPC period and a longer operating phase. Any company disclosure on revenue recognition, order book, project costs or completion milestones would offer additional context on the contract’s financial effect.

The October 16 filing also makes clear that the client is a domestic government entity and that no related-party transaction is involved. That disclosure helps define the counterparty and governance context of the award, but it does not provide further details on project economics.

Conclusion

LCC Projects has secured a ₹151.57 crore Gujarat water-supply EPC order excluding GST, covering transmission from Machhu-I Dam to Triveni Thanga Reservoir and villages in Wankaner and Chotila talukas. Its 24-month construction requirement and 10-year operations and maintenance mandate make it a longer-duration assignment than a construction-only project.

The next item to watch is execution of the formal contract under the tender conditions disclosed by the company. Investors can also track construction mobilisation, future progress disclosures and any financial details that clarify how the order will contribute during the build phase and the subsequent maintenance period.