LCC Projects gets Rs 703-crore Bharuch water job with 18-month build and 10-year upkeep

LCC Projects, a Gujarat-based contractor that builds canals, pipe networks and drinking-water systems, said on November 3, 2026 that it has received a letter of intent dated November 2, 2026 from the Gujarat Water Supply and Sewerage Board for a Rs 703-crore water-supply job in Bharuch to be built in 18 months and then maintained for 10 years . The win adds about 9% to its Rs 8,154-crore order book as of September 30, 2026 and extends a run of government water wins, shifting focus to execution and funding for the long upkeep tail .

What the Rs 703-crore letter covers

The awarding body is the Gujarat Water Supply and Sewerage Board, a domestic entity, and the work is a domestic EPC job, where one contractor designs, buys and builds the system .

The full scope is working survey, design and construction of an intake well with approach bridge, providing, supplying, lowering, laying and jointing of various diameters of DI-K9 and MS rising main pipelines, RCC sump, pump house, staff quarter and compound wall .

It also includes supplying and erecting pumping machinery including all electro-mechanical, instrumentation and SCADA works at various head works to sub head works under the water supply scheme based on Bhadbhut Barrage right-hand side for industries and rural areas of Bharuch and Vadodara districts .

SCADA is the computer control system to monitor pumps and flows, and comprehensive O&M means LCC must operate and repair the whole system after building it.

The broad consideration is Rs 703-crore excluding GST, with LCC to be fully responsible for complete execution including all contractual obligations and receipt of payment under the letter and tender document .

The time to execute is 18 months including 3 months of trial and run from November 2, 2026, plus 10 years of comprehensive O&M of the entire scope .

There is no promoter or group interest in the awarding body and it is not a related-party deal . This is a receipt of a letter of intent, and the company said it will update on further developments .

A third water signal in two months

The November letter follows two other water signals in the past two months. The details are set out below to keep the values and timelines apart.

Sources: Oct 16 acceptance — ; Sept 24 L-1 — .

The October acceptance is a smaller confirmed water-supply job with the same long upkeep pattern . The September L-1 is a large possible irrigation win that is not yet a final order, since L-1 means lowest bidder .

Bookings reported around those wins show inflow replacing execution.

Sources: H1 FY27 booking and Sept L-1 — ; YTD booking split and L-1 — .

The two company presentations give different bookings for the same April-September period, so the figures above are not additive .

Together the September L-1, October acceptance and November letter show continued inflow of government water work, with the October and November orders both carrying 10-year upkeep .

How large it is against backlog and sales

The backlog has grown steadily over three years, as below on a consolidated basis.

Source: .

The book is described as steady growth in the execution pipeline and as about 2.21 times order book to revenue reflective of future potential, with more than 100 projects .

The relative size of the new letter against that backlog and recent sales is shown below.

Sources: LOI value and timeline — ; backlog — ; revenue — .

The comparison shows a single-digit addition to backlog but a material workload against quarterly execution . Construction is spread over 18 months and upkeep over 10 years .

Longer revenue and profit scale on a consolidated basis shows rising execution with expanding margins.

Source: .

Revenue compounded at 21.5% from FY24 to FY26 while PAT compounded at 53.2% over the same period . The H1 FY27 row continues that margin lift.

The half-year comparison below isolates the most recent margin step.

Source: .

Growth was modest on revenue at 5% but stronger on profit, pointing to better project selection and execution .

What the last quarter looked like before the letter

The quarter just before the letter showed sequential growth on a consolidated basis.

Source: .

Revenue grew 10.4% quarter on quarter in Q2 FY27, with EBITDA up 12.4% and PAT up 17% .

The presentation frames Q2 FY27 as strong growth despite monsoon disruption.

Source: .

Management described Q2 FY27 as robust 34% year-on-year growth in execution despite seasonal monsoon disruption . It linked the 58% PAT growth to disciplined project selection and execution strategy .

Q1 FY27 had been soft after supply-chain disruption from fuel shortage and temporary workmen shortage linked to state elections . Management said the situation has since normalized with rising on-ground workforce and better material availability .

The balance sheet as of September 30, 2026, just before the November letter, is shown below on a consolidated basis.

Source: .

Total borrowings were Rs 884.54-crore in H1 FY27, with short-term debt of Rs 833.07-crore and long-term debt of Rs 51.47-crore .

Leverage improved after the IPO fresh issue, as below.

Source: .

The company raised Rs 258-crore via IPO fresh issue in H1 FY27 . Working capital days improved to 40 days as of September 30, 2026 from 45 days as of March 31, 2026, with over 35% of non-fund based limits still unutilised to bid for larger projects .

Cash conversion stayed tight in the half, as below on a consolidated basis.

Source: .

The negative operating cash flow alongside higher receivables points to working-capital absorption during execution .

Why the job fits the water core, and where concentration sits

Irrigation and water supply remains the core, though other work has risen.

Source: .

Other projects include mining, road work and metro rail related work . The company describes itself as primarily into execution of irrigation and water supply segments with a focused presence in complex projects .

Geography has spread beyond Gujarat, the home state and site of the new order.

Source: .

Presence is across 12 states as of September 30, 2026 with 80 projects completed . The September order book spans more than 100 projects, with 75.4% from government departments and 24.6% from private customers across 116 projects .

Named key clientele include Madhya Pradesh Jal Nigam, Indira Gandhi Nahar Project Rajasthan and Department of Water Resources Odisha . In Gujarat they include Sauni Yojana Division Rajkot, Water Resources Investigation Division Gandhinagar and Sardar Sarovar Narmada Nigam .

The strategic blueprint calls for projects in 12 states with planned expansion in Bihar and Goa to diversify and reduce risk .

Delivery is framed around complete in-house expertise from project identification to operation and maintenance . That approach is said to minimize reliance on third parties and speed timelines while controlling budgets .

It is backed by about 700 qualified engineering and technical staff with average experience of more than 5 years . Tools cited include SCADA, Water Gems, Water Hammer, KY Pipe, Staad-pro, AutoCAD, GIS and E-Survey .

Commercial selection stresses steady cash flows and milestone-based payment . Management prefers escalation clauses to limit cost overruns, with site-level budget discipline and a diversified order book aligned to risk appetite .

What to watch from letter to site

The disclosure is a letter of intent with further updates promised . Execution and payment are governed by the letter and the tender document .

LCC is fully responsible for complete execution . The clock is tight at 18 months including 3 months of trial and run from November 2, 2026 . Design, DI-K9 and MS pipes, pumps, electro-mechanical and SCADA integration and passing the trial must all fit in that window .

The 10-year comprehensive O&M tail extends responsibility well beyond construction . A similar 10-year upkeep applies to the October Sauni Yojana acceptance .

With trade receivables at Rs 673.73-crore and short-term debt at Rs 833.07-crore alongside negative operating cash flow of Rs 116.02-crore in H1 FY27, milestone payments and working-capital control will shape how smoothly the Bharuch build converts into cash . The improved 40-day cycle and unutilised bid limits provide headroom, but execution pace remains the test .

---

Sources

1. 1 the Company has received LOI from Gujarat Water Supply and Sewerage Board, for the work "Working Survey, Design & Construction of Intake well with Approach Bridge, Providing, Supplying, ....
2. 2 Investor presentation, 2026-10-30
3. 3 LCC Projects Ltd - 544918 - Announcement under Regulation 30 (LODR) - Bagging/receiving of order(s) or contract(s)
4. 4 LCC Projects Ltd - 544918 - LCC Projects Limited Has Emerged As L-1 Bidder For The Work Of 'Construction Of Chhoti Kalisindh Medium Irrigation Project Based On Sprinkler With Solar System At Chhoti Kalisindh And Chahurni River Tehsil-Gangdh
5. 5 LCC Projects Ltd - 544918 - Announcement under Regulation 30 (LODR)-Investor Presentation
6. 6 LCC Projects Ltd — historical financial matrix and financial statement analysis