Coinpaper
March 3, 2026 1:13 PM UTC

L&T Shares Fall 5% as Iran Conflict Threatens Middle East Projects

The share price of the Mumbai-based multinational conglomerate Larsen & Toubro Limited (L&T) dipped after the US-Israel strikes on Iran. L&T Stock Down by 5% India’s largest infrastructure company shed nearly 5% to close at ₹ 4,066.70 on Monday as investors took action to minimize potential losses before India’s stock exchanges take full trading break for the Holi Festival on Tuesday. Business Presence in the Middle East L&T’s shares are under pressure due to the situation in Iran as the firm has substantial exposure to the Middle East. “The Middle East is a strategically significant market for Larsen & Toubro, with a deep and long-standing business presence across the region spanning energy, infrastructure, renewables and technology,” the company said. In October last year, L&T announced that it has won an ultra-mega order for setting up a Natural Gas Liquids plant and allied facilities in the region. “The scope of work encompasses engineering, procurement, construction, installation and commissioning of a Natural Gas Liquids plant and allied facilities for processing Rich Associated Gas (RAG),” the company said in a statement. “This also involves all associated utilities and offsite and integration with existing facilities.” According to the brokerage JM Financial, the company secured 37% of its orders and 33% of its FY26 inflows from the Middle East. Operational Uncertainties The brokerage Macquarie said that the company faces operational uncertainties amid the escalating tension between Iran, the US and Israel. Potential delays and profit margin risks could arise because of worker safety concerns and mandatory evacuations. The company said that it is closely monitoring the situation and confirmed that its employees, workers and assets in the conflict-sticken region are safe. “Our Management Committee is being updated on a real-time basis by our on-ground teams, business partners and local State Administrations to ensure full situational awareness at all times.”