Shares of infrastructure company L&T fell on Monday, trading at Rs 3,995.60, down 6.66 per cent. The decline reduced the company’s market capitalisation by around Rs 40,000 crore to Rs 5.49 lakh crore.
Shares of infrastructure company Larsen & Toubro Ltd (L&T) fell on Monday, trading at Rs 3,995.60, down 6.66 per cent. The decline reduced the company’s market capitalisation by around Rs 40,000 crore to Rs 5.49 lakh crore.
The fall comes amid tensions between Iran and Israel following missile strikes by the US and Israel over the weekend, which killed Iranian Supreme Leader Ayatollah Ali Khamenei. Indian markets traded lower, with Sensex and Nifty down nearly 2 per cent each.
L&T Middle East Exposure
A company spokesperson said all employees and assets in the region are safe. The spokesperson added that the company is in contact with clients, follows government advisories, and has issued a travel advisory for personnel, asking them to avoid non-essential travel.
According to JM Financial estimates, 37 per cent of L&T’s order book is linked to Middle East projects. Around 33 per cent of the company’s order inflows in the first nine months of FY26 came from the region. The company’s dependence on the Middle East makes it sensitive to geopolitical developments in the area.
L&T Order Book
As of December 31, 2025, L&T’s consolidated order book was Rs 7,33,161 crore, up 30 per cent from December 2024. International orders made up 49 per cent of the total, with the Middle East contributing 37 per cent. So, approximately Rs 2,71,315 crore of L&T’s order book is from the Middle East.
Domestic orders accounted for 51 per cent, and the rest of the world 12 per cent. L&T operates in more than 50 countries and is involved in engineering, procurement, construction, manufacturing, and services. Its integrated capabilities cover the full cycle from design to delivery.
L&T Order Inflows
In Q3 FY26, L&T recorded order inflows of Rs 1,35,600 crore, up 17 per cent from Rs 1,15,900 crore in the year-ago period. Middle East orders contributed Rs 44,800 crore, India Rs 68,800 crore, USA and Europe Rs 20,300 crore, and the rest of the world Rs 9,500 crore.
For the nine months ended December 31, total inflows were Rs 3,45,800 crore, up 30 per cent from Rs 2,67,000 crore in the same period last year. Middle East projects contributed Rs 12,700 crore to energy and Rs 20,500 crore to infrastructure.
The company reported a prospective pipeline of Rs 5,90,000 crore, with significant opportunities in the Middle East.
L&T Q3 FY26 Results
L&T reported a 4.2 per cent decline in consolidated profit after tax for Q3 FY26 to Rs 3,215 crore from Rs 3,359 crore in the year-ago period. Revenue from operations rose to Rs 71,450 crore from Rs 64,668 crore. Total expenses increased to Rs 65,729.76 crore from Rs 60,302.62 crore in the same period last year.
Over the past five years, L&T shares gained 169.09 per cent. In the last three years, they rose 88.43 per cent, and in the past year, 26.36 per cent. Year-to-date, the stock has fallen 3.45 per cent and dropped 9.52 per cent in the last week.
L&T Share Price: Should you Buy, Sell or Hold?
As per recent brokerage reports, JP Morgan maintained an Overweight on L&T with a target of Rs 4,780, Goldman Sachs had a Buy target of Rs 4,950, Jefferies maintained a Buy at Rs 4,715, and Macquarie gave an Outperform rating with a target of Rs 4,620. Based on the CMPs in these reports, which ranged from Rs 4,286 to Rs 4,380, the implied upside for the stock was between 7.9 per cent and 15.5 per cent.
FAQ: L&T Share Price Fall and Middle East Exposure
Q1: Why did L&T shares fall recently?
A1: Larsen & Toubro Ltd (L&T) shares fell 6.66% on Monday, trading at Rs 3,995.60. The decline reduced the company’s market capitalization by around Rs 40,000 crore to Rs 5.49 lakh crore. The fall comes amid heightened geopolitical tensions following missile strikes by the US and Israel in the Middle East.
Q2: How is L&T connected to the Middle East?
A2: The Middle East is a key market for L&T, contributing 37% of its total order book and 33% of order inflows in the first nine months of FY26. The company has ongoing projects in energy, infrastructure, renewables, and technology in the region.
Q3: Is L&T personnel and assets in the Middle East safe?
A3: Yes. A company spokesperson confirmed that all employees and assets in the Middle East are safe. L&T has issued a travel advisory to avoid non-essential travel and is closely coordinating with clients and following government advisories.
Q4: What is L&T’s current order book?
A4: As of December 31, 2025, L&T’s consolidated order book was Rs 7,33,161 crore, up 30% from the previous year. International orders represent 49% of the total, with the Middle East contributing 37% (approximately Rs 2,71,315 crore).
Q5: What were L&T’s Q3 FY26 results?
A5: In Q3 FY26, L&T reported a consolidated profit after tax of Rs 3,215 crore, down 4.2% from Rs 3,359 crore in Q3 FY25. Revenue from operations increased to Rs 71,450 crore from Rs 64,668 crore, while total expenses rose to Rs 65,729.76 crore from Rs 60,302.62 crore.
Q6: What are analysts saying about L&T shares?
A6: Analysts remain optimistic despite the recent fall:
JP Morgan: Overweight, target Rs 4,780
Goldman Sachs: Buy, target Rs 4,950
Jefferies: Buy, target Rs 4,715
Macquarie: Outperform, target Rs 4,620
These targets imply a potential upside of 7.9% to 15.5% from current market prices.
Q7: How has L&T’s stock performed historically?
A7: Over the past five years, L&T shares gained 169.09%. In the last three years, the gain was 88.43%, and in the past year, 26.36%. Year-to-date, the stock has fallen 3.45% and dropped 9.52% in the last week.
