L&T Rallies As War Fears Ease – Impact On Projects And Orders

The Larsen & Toubro Ltd share price rose up to 3% to ₹3,443 on 24 March 2026, recovering from the previous session’s 2.7% decline, after Donald Trump signalled progress in talks with Iran.

The L&T stock had come under pressure in recent weeks, declining over 20% in the past month and 18% since the start of the year, as geopolitical tensions in West Asia weighed on investor sentiment.

Why Does The West Asia Situation Matter For L&T?

This is a big development for L&T, as the company has a considerable presence in the Middle East, which is still one of the major markets of its engineering and construction business.

This firm has more than 100 project sites in countries like Saudi Arabia, the UAE, Qatar, Kuwait, and Oman. Its workforce consists of approximately 8,000 employees, 2,000 family members, and approximately 20,000 contractual workers in the area.

By December 2025, West Asia accounted for nearly 40% of L&T's overall order book, and roughly three-quarters of its international orders. This underscores the region's importance to the company's expansion and project execution.

L&T operations have not been affected much by the ongoing conflict. It has been reported that close to 95% of its projects are still operating normally, which means that it does not cause much disruption on the ground immediately.

However, uncertainty about potential escalation had raised concerns about execution risks, contributing to the recent correction in the stock.

How Did L&T Perform In Q3?

At the financial level, L&T posted mixed results in the December quarter. It reported a net profit reduction of 4.3% at ₹3,215 crore as compared to the net profit of ₹3,359 crore the year before.

Meanwhile, the revenue generated in operations increased by 10% to ₹71,450 crore as compared to ₹64,668 crore a year before.

The reduction in profit was also attributed to a one-off payment of ₹1,191 crore to employees in response to the changes in the new labour codes.

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What Does This Mean For Investors?

To the investors, the L&T share recovery is indicative of relaxed geopolitical tensions, especially with the company having massive exposure to West Asia.

Although operations are not affected yet, any long-term de-escalation of the region will be able to enhance the visibility of execution, inflows of orders, and overall sentiment. Meanwhile, the recent volatility shows how sensitive the stock is to developments in the world market.

Source:

Economic Times