Larsen & Toubro Monitors Iran-Israel Situation, Maintains Growth Targets

Larsen and Toubro Shares in Focus Amid Iran Israel US Conflict and Middle East Exposure​

Shares of Larsen and Toubro Ltd were in focus on Monday, March 2, following escalating tensions triggered by the Iran Israel US conflict that began over the weekend.

The development has drawn attention to the company’s significant exposure to the Middle East, a key international market for India’s largest infrastructure firm.

Nearly Half of Order Book Linked to International Business​

Larsen and Toubro holds a substantial international footprint. As much as ₹3.6 lakh crore, representing 49 percent of its consolidated order book, is derived from overseas business.

Of this, more than 80 percent originates from the UAE, Saudi Arabia, and the broader Middle East region. According to JM Financial, the company has a 37 percent order book exposure to the Middle East, while 33 percent of its order inflows for the first nine months of FY26 have come from the region.

This concentration underscores the strategic importance of the Middle East in L&T’s growth trajectory.

Company Issues Travel Advisory, Confirms Safety of Personnel​

In response to the rapidly evolving situation, an L&T spokesperson said the Middle East remains a strategically important market, with a long standing presence across energy, renewables, infrastructure, and technology sectors.

The company confirmed that all its employees, workers, and assets in the region are safe. It stated that its management committee is receiving real time updates from on ground teams, business partners, and local state administrations to maintain full situational awareness.

As a precautionary step, L&T has issued a travel advisory to concerned personnel, advising them to avoid non essential travel and movement. The company added that it is in constant contact with clients and is adhering to government advisories.

Conflict Escalates Across the Middle East​

On Saturday, February 28, Israel and the US launched attacks on Iran in the morning. In response, Iran targeted US naval bases in Bahrain, the UAE, and Kuwait.

The attacks resulted in the death of Ali Khamenei. Following the developments, Iran declared that there were no longer any red lines and that everything was possible.

Subsequently, a series of attacks have been launched across the Middle East and in Israel, leading to airspace closures, stranded travelers, and disruptions to work and daily life in the region.

Recent Order Win and FY26 Guidance Remain Intact​

Despite geopolitical uncertainties, L&T recently secured an order worth up to ₹10,000 crore across the Middle East and India.

After announcing its third quarter earnings, the company’s management maintained its full year guidance across key parameters. It stated that it expects to exceed its order inflow growth guidance of 10 percent for the year.

Management also reiterated its revenue growth guidance of 15 percent and core margin guidance of 8 percent for FY26.

Stock Performance​

Larsen and Toubro shares closed the previous trading session 0.4 percent lower at ₹4,270 apiece. The stock has gained 19 percent over the past six months, reflecting sustained investor interest despite emerging geopolitical risks.

As the Middle East situation unfolds, market participants are closely tracking developments given L&T’s significant regional exposure and ongoing project commitments.