L&T Shares Jump Over 8% In Early Trade As West Asia Tensions Ease

Shares of Larsen & Toubro (L&T) rose sharply on Wednesday, gaining as much as 8.1% to hit an intra-day high of ₹4,024.9 on the Bombay Stock Exchange (BSE).

At 10:58 am, L&T shares were trading at ₹3,985.20 a piece, up by 7.04%, on the BSE.

Relief Rally On Ceasefire Signal

The buying followed positive developments in West Asia. This came after US President Donald Trump said attacks on Iran would be suspended for two weeks. The pause comes after a five-week conflict that had disrupted a key global energy route and weighed on equity markets.

The development matters for L&T given its large exposure to the region. The company had earlier flagged risks from supply chain disruptions and delays in project execution due to the conflict.

Impact On L&T Operations

L&T said earlier that more than 30% of its revenue comes from the Middle East. Despite tensions, most projects remain active. As per the company’s operational details:

• 95% of over 100 project sites in West Asia are operational.

• Around 5% of sites are temporarily paused near conflict zones.

Subramanian Sarma, deputy managing director, said the company does not see any immediate impact on revenues. He added that a delay beyond three months could lead to revenue deferment. Sarma also said none of the company’s sites have been attacked. All staff and workers in the region are safe.

Order Book And Regional Exposure

The Middle East continues to remain a key market for L&T. The region contributes about 33% of revenue. Also,

• It accounts for 37% of the ₹7.33 trillion order backlog.

• Of the ₹3.46 trillion order inflows in April–December (9MFY26), about one-third came from West Asia.

The company said operations, billing, and order inflows remain stable despite the ongoing situation. However, it has highlighted logistics disruptions and higher input and insurance costs as near-term challenges.

Also Read - Oil Prices Drop Over 16% As US-Iran Agree To Ceasefire

Brokerages Flag Near-Term Risks

As per brokerages, the West Asia crisis could affect L&T’s near-term outlook due to its high exposure to the region. They flagged the possibility of shortages in key raw materials, including in India. However, they noted that there are no signs of project cancellations or payment delays so far, with the long-term outlook being intact.

Following the completion of Project Lakshya in FY26, brokerages expect L&T to increase focus on segments such as defence, thermal power engineering, procurement and construction (EPC), and real estate. They also see an incremental push in newer areas including semiconductor design and data centres.

Sources:

Business Standard

Moneycontrol