LCC Projects lifts margin as revenue growth outpaces expenses
Sequential net profit rose 17.02%, helped by a lower tax rate, while management cited normalized execution and an order book of ₹83,878 million as of June 30.
Filed 30 Oct 2026, 18:22 IST · after market close · LCC Projects Ltd (LCCPROJECT)
Key takeaways
- Consolidated revenue grew +10.36% sequentially, while expenses rose +9.62%, widening operating margin by 0.57 percentage points.
- Net profit increased +17.02% sequentially as the tax rate fell 3.47 percentage points to 24.88%, partly offsetting a +13.49% rise in interest costs.
- The 15.46% operating margin was 3.03 percentage points above the 12.43% median for 75 Industrials peers that had reported.
Price around the results
Revenue momentum improved in Q2FY27
LCC Projects’ consolidated revenue rose +10.36% sequentially to 885.73, with operating profit up +14.59% to 136.92. The faster rise in operating profit reflects revenue growth outpacing the +9.62% increase in expenses. Management said execution constraints from fuel shortages, geopolitical supply-chain disruption and temporary workmen shortages had normalized, with workforce and material availability improving.
Lower tax rate supported profit growth
Operating margin widened by 0.57 percentage points to 15.46%, as costs grew more slowly than revenue. Interest expense rose +13.49% and depreciation increased +14.09%, but the tax rate fell 3.47 percentage points to 24.88%, helping net profit grow +17.02%. Other income accounted for 6.00% of profit before tax, so it was a limited but visible contributor to earnings quality.
Margin stayed above the Industrials peer median
With only Q1FY27 available in the trend, the quarter marks a sequential margin improvement from 14.89% rather than a confirmed multi-quarter direction. The 15.46% margin was 3.03 percentage points above the 12.43% median among 75 Industrials companies that had reported the same quarter. The results were filed after market close, so there is no post-results stock reaction to assess yet.
Management points to orders, execution and cash flow
Management said the order book stood at ₹83,878 million on June 30, 2026, up from ₹79,532 million on March 31, and that FY27 year-to-date order bookings were ₹22,291 million. The company said it expects its order visibility and execution momentum to support growth and performance objectives through the remainder of FY27. It also said it plans to focus on higher-value projects and working-capital optimisation to improve margins and cash flows, while expanding into Bihar and Goa and investing in CAD, IoT, SCADA and ERP systems.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹886 cr | ₹803 cr | +10.36% |
| Other income | ₹6 cr | ₹8 cr | -23.41% |
| Expenses | ₹749 cr | ₹683 cr | +9.62% |
| Operating profit | ₹137 cr | ₹119 cr | +14.59% |
| Operating margin (%) | 15.46% | 14.89% | — |
| Interest | ₹28 cr | ₹25 cr | +13.49% |
| Depreciation | ₹13 cr | ₹11 cr | +14.09% |
| Profit before tax | ₹102 cr | ₹92 cr | +11.61% |
| Tax | ₹25 cr | ₹26 cr | -2.04% |
| Net profit | ₹77 cr | ₹66 cr | +17.02% |
| EPS (₹) | ₹2.57 | ₹2.34 | +9.83% |
Operating margin of 15.46% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Execution constraints have normalized, with a steadily increasing on-ground workforce and improved material availability.
Guidance & outlook
- The company says its order visibility supports confidence in sustained growth momentum through FY27.
- The company expects to deliver its growth and performance objectives for the remainder of FY27.
- The company plans to focus on high-value projects to boost margins and cash flows.
- The company plans to optimize working capital to ensure steady cash flows.
Expansion
- The company has projects in 12 states and plans to expand into Bihar and Goa.
New orders
- The order book stood at ₹83,878 million on June 30, 2026, up from ₹79,532 million on March 31, 2026.
- The company reported FY27 year-to-date order bookings of ₹22,291 million.
New initiatives
- The company is investing in CAD, IoT, SCADA and ERP technologies.
- The company is using integrated systems and data-driven cost optimization to improve operational efficiency.
- The company plans to strengthen its design and engineering capabilities.
Problems & risks
- Execution was affected by supply-chain disruptions linked to geopolitical tensions and a shortage of commercial fuel.
- Temporary workmen shortages linked to state elections further affected execution.
What to watch
- Whether operating margin holds above 15.46% after the 0.57 percentage-point sequential improvement.
- Whether the tax rate remains near or below 24.88% without further support from a lower rate.
- How quickly the ₹83,878 million order book cited at June 30 converts into revenue and cash flow.