LCC Projects Q2 profit rises 58% as margins expand faster

LCC Projects Limited reported consolidated profit after tax (PAT) of Rs 77 crore in Q2FY27, up 58% from Rs 48.6 crore a year earlier, exceeding revenue growth of 34%. Revenue reached Rs 885.7 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased to 15.5% from 14.2%.

Why did LCC Projects' Q2 profit grow faster than revenue?

LCC Projects' Q2FY27 profit grew faster than revenue because its reported operating, EBIT and net margins all increased from Q2FY26 levels. Revenue from operations increased by Rs 224.4 crore to Rs 885.7 crore, while EBITDA rose by Rs 43.1 crore to Rs 136.9 crore and PAT increased by Rs 28.4 crore to Rs 77 crore. EBITDA grew 46% and PAT grew 58%, compared with 34% revenue growth.

LCC Projects reported EBITDA margin of 15.5% in Q2FY27, a 1.3-percentage-point increase from 14.2% in Q2FY26. EBIT margin increased by 1.8 percentage points to 14.6% from 12.8%, while PAT margin rose by 1.3 percentage points to 8.6% from 7.3%. Management attributed the changes to improved project mix, operational efficiencies and stringent cost controls, alongside timely delivery, resource utilisation and disciplined project management.

How did LCC Projects' first-half results compare with the quarter?

LCC Projects reported slower year-on-year revenue growth in H1FY27 than in Q2FY27, although first-half margins improved. Revenue from operations for the six months ended September 30, 2026 rose 5% to Rs 1,688.3 crore from Rs 1,606.8 crore, compared with the 34% increase recorded in Q2FY27. H1FY27 EBITDA increased 16% to Rs 256.4 crore and PAT rose 13% to Rs 142.7 crore.

LCC Projects' H1FY27 EBITDA margin was 15.2%, up from 13.8% in H1FY26, while EBIT margin rose to 14.5% from 12.9%. PAT margin increased to 8.4% from 7.8%. The first-half EBITDA margin was also above the 13.4% reported for FY26, and the H1FY27 PAT margin exceeded the FY26 figure of 7.9% by 0.5 percentage points.

What order book and debt did LCC Projects report?

LCC Projects reported an order book of Rs 8,154 crore as of September 30, 2026, and H1FY27 order booking of Rs 1,641.3 crore. Public-sector customers accounted for about 75% of the order book, while private-sector customers made up about 25%. The company describes itself as an engineering, procurement and construction company focused on complex irrigation and water-supply projects across India.

LCC Projects reported gross debt of Rs 884.5 crore at September 30, 2026, with a gross-debt-to-equity ratio of 0.70 times. Management said the Rs 8,154 crore order book provides revenue visibility and underpins confidence in execution momentum in coming quarters. That view is forward-looking, and the release cautioned that actual results may differ materially because of risks and uncertainties.

What does management say will drive LCC Projects next?

LCC Projects' management said it will evaluate new projects selectively, focusing on opportunities aligned with its execution capabilities and profitability objectives. The company identified a pipeline of bids in irrigation and integrated water-management projects, alongside its Rs 8,154 crore order book at September 30, 2026. Management also cited the diversified public-private composition of the backlog as a foundation for future growth.

Management said increasing government emphasis on water conservation, agricultural productivity and sustainable irrigation infrastructure supports opportunities in irrigation and water management. It identified operational excellence, prudent financial management and timely project delivery as elements of its plan to strengthen its market position. The October 30, 2026 release did not disclose a revenue, margin, order-intake or debt-reduction target for the remainder of FY27.

Conclusion

LCC Projects' Q2FY27 figures indicate that profit growth exceeded the increase in project execution revenue. Revenue rose 34% to Rs 885.7 crore, while EBITDA increased 46% and PAT rose 58%. The associated expansion in EBITDA margin to 15.5%, EBIT margin to 14.6% and PAT margin to 8.6% was also reflected in the higher H1FY27 margins.

The next results will show whether LCC Projects converts the Rs 8,154 crore order book as of September 30, 2026 into continued execution and profitability. Management's selective-bidding plan, the approximately 75% public-sector share of the backlog and gross debt of Rs 884.5 crore are the disclosed matters to watch, while no FY27 financial target was provided.