LCC Projects Q2 revenue rises 34% as EBITDA margin hits 15.5%

LCC Projects Limited reported Q2FY27 revenue from operations of Rs 885.7 crore, 34% above Rs 661.3 crore a year earlier, despite monsoon-related seasonal disruption. Profit after tax rose 58% to Rs 77 crore, outpacing revenue as earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased to 15.5% from 14.2%.

How did LCC Projects perform in Q2FY27?

LCC Projects delivered higher revenue and profit in Q2FY27, with revenue from operations rising Rs 224.4 crore year on year to Rs 885.7 crore. Total income rose 33% to Rs 891.9 crore from Rs 669.1 crore, while EBITDA, excluding other income, increased 46% to Rs 136.9 crore.

The increase in operating profit exceeded revenue growth. Earnings before interest and tax (EBIT) grew 52% to Rs 130.3 crore from Rs 85.6 crore, and profit before tax rose 55% to Rs 102.4 crore from Rs 66.1 crore. Profit after tax (PAT) increased to Rs 77 crore from Rs 48.6 crore, according to the consolidated financial highlights.

LCC Projects also improved sequentially from Q1FY27, when revenue was Rs 802.6 crore and EBITDA was Rs 119.5 crore. Q2FY27 PAT of Rs 77 crore was Rs 11.2 crore above Q1FY27 PAT of Rs 65.8 crore. The presentation attributes the quarterly 34% execution growth to performance despite seasonal disruptions caused by the monsoon.

Why did LCC Projects' margins increase in Q2FY27?

LCC Projects' EBITDA margin increased by 1.3 percentage points year on year to 15.5% in Q2FY27, while EBIT margin rose by 1.8 percentage points to 14.6%. PAT margin increased to 8.6% from 7.3%, a 1.3-percentage-point change, alongside the 58% increase in quarterly PAT.

Construction expenses, including cost of material consumed, rose to Rs 682.8 crore from Rs 520.6 crore as revenue expanded. Employee expenses increased to Rs 45.8 crore from Rs 38.3 crore, and other expenses rose to Rs 20.2 crore from Rs 8.7 crore. These expense movements occurred alongside a Rs 43.1 crore rise in EBITDA, from Rs 93.8 crore to Rs 136.9 crore.

Finance cost increased to Rs 27.8 crore in Q2FY27 from Rs 19.6 crore in Q2FY26, while depreciation declined to Rs 12.8 crore from Rs 16 crore. The lower depreciation and higher EBIT contributed to the increase in profit before tax margin to 11.5% from 9.9%. Tax expense was Rs 25.5 crore, compared with Rs 17.5 crore a year earlier.

How did LCC Projects perform in H1FY27?

LCC Projects recorded more moderate revenue growth for H1FY27 than in the second quarter alone. Revenue from operations for the half year rose 5% to Rs 1,688.3 crore from Rs 1,606.8 crore in H1FY26, while the detailed consolidated figures show EBITDA increased 16% to Rs 256.4 crore from Rs 221.5 crore.

Half-year EBIT rose 18% to Rs 246.4 crore and PAT grew 13% to Rs 142.7 crore. EBITDA margin increased to 15.2% from 13.8%, EBIT margin to 14.5% from 12.9%, and PAT margin to 8.4% from 7.8%. The H1FY27 performance-update page lists EBITDA as Rs 255.4 crore, while the detailed consolidated financial table reports Rs 256.4 crore.

The gap between H1 revenue growth of 5% and Q2 growth of 34% reflects the comparative pattern across the two periods rather than a company forecast. In Q1FY27, revenue was Rs 802.6 crore, EBITDA margin was 14.9% and PAT margin was 8.1%; Q2 raised those margins to 15.5% and 8.6%, respectively.

What do LCC Projects' orders and working capital show?

LCC Projects had an order book of Rs 8,154 crore as of September 30, 2026, compared with Rs 7,953.2 crore on March 31, 2026. Order bookings in H1FY27 were Rs 1,641.3 crore, and the company reported an L1 position, meaning lowest-bidder status, for projects worth Rs 1,582.8 crore at September 30, 2026.

Working-capital days improved to 40 days at September 30, 2026, from 45 days at March 31, 2026. Management also reported that more than 35% of non-fund-based limits remained unutilised, which it said provides capacity to bid for larger projects. These are management statements on available bidding capacity, not awarded orders.

Cash flow data shows a separate funding consideration. H1FY27 cash generated from operations was negative Rs 77.2 crore following a Rs 340.2 crore working-capital outflow, and net cash from operating activities was negative Rs 116 crore after taxes. Net cash generated from financing activities was Rs 218 crore, taking closing cash and cash equivalents to Rs 238.4 crore from Rs 172.2 crore at the start of the half year.

Conclusion

LCC Projects combined 34% Q2FY27 revenue growth with faster growth in EBITDA, EBIT and PAT, producing higher operating and net margins than a year earlier. The quarter's Rs 77 crore PAT was supported by a 15.5% EBITDA margin, while the half year showed a 5% revenue increase and a 16% rise in detailed-table EBITDA, indicating that the second quarter accounted for the acceleration.

The next disclosed matters to watch are conversion of the Rs 1,582.8 crore L1 pipeline, execution against the Rs 8,154 crore order book and the effect of working-capital movements on cash generation. Management's stated plan is to use more than 35% unutilised non-fund-based-limit headroom to pursue larger projects, while working-capital days stood at 40 as of September 30, 2026.