L&T shares rise 2% as firm wins 'ultra-mega' order in Middle East
L&T shares touched an intraday high of Rs 3,795, rising 1.79% on BSE. L&T shares were in the green, reflecting investor optimism following the announcement.
- Oct 9, 2025,
- Updated Oct 9, 2025 1:10 PM IST
Shares of Larsen & Toubro (L&T) rose nearly 2% on Thursday after the company said that its hydrocarbon onshore business secured an "ultra-mega" order, classified as any order above Rs 15,000 crore. The contract, awarded in consortium with Greece-headquartered Consolidated Contractors Group SAL (Offshore) (CCC), involves setting up a natural gas liquids plant and allied facilities in the Middle East.
L&T shares touched an intraday high of Rs 3,795, rising 1.79% on BSE. L&T shares were in the green, reflecting investor optimism following the announcement. Over the last six months, the stock has gained 23.6%.
Under the consortium arrangement, L&T will oversee the technical and procurement elements while CCC will execute construction. The project covers processing of rich associated gas and integration with current infrastructure. The order win demonstrates L&T's capability to partner on complex international projects and pursue further growth opportunities in the Middle East hydrocarbon sector. Recent brokerage commentary sees L&T as well-placed for additional inflows.
L&T stated that the scope of the project includes engineering, procurement, construction, installation, and commissioning of the plant to process rich associated gas (RAG), alongside all associated utilities and integration with existing facilities. The RAG sourced from oil fields will be treated to remove impurities such as hydrogen sulphide, carbon dioxide, and water, producing products like lean sales gas, ethane, propane, butane, and hydrocarbon condensate.
Subramanian Sarma, L&T's deputy managing director and president said, "This project is not just about scale but is also about bringing in advanced engineering, long-term reliability measures and complex brownfield interfaces to deliver value-added products, highlighting the technical complexity and value addition involved in the project.
Meanwhile, brokerage firm Investec maintained its "buy" rating on L&T and set a target price of Rs 3,736 per share, suggesting a potential 20% upside from Tuesday's closing price.
Investec said L&T was favourably positioned to win additional large, multi-billion-dollar contracts, including the Yanbu Green Hydrogen project, Kuwait Gulf Oil order, Dorra Gas project, and Aramco Brownfield expansion, all in the Middle East. The company classifies orders above Rs 15,000 crore as "ultra-mega," underscoring the significance of this latest contract win for L&T's order book and regional presence.
Shares of Larsen & Toubro (L&T) rose nearly 2% on Thursday after the company said that its hydrocarbon onshore business secured an "ultra-mega" order, classified as any order above Rs 15,000 crore. The contract, awarded in consortium with Greece-headquartered Consolidated Contractors Group SAL (Offshore) (CCC), involves setting up a natural gas liquids plant and allied facilities in the Middle East.
L&T shares touched an intraday high of Rs 3,795, rising 1.79% on BSE. L&T shares were in the green, reflecting investor optimism following the announcement. Over the last six months, the stock has gained 23.6%.
Under the consortium arrangement, L&T will oversee the technical and procurement elements while CCC will execute construction. The project covers processing of rich associated gas and integration with current infrastructure. The order win demonstrates L&T's capability to partner on complex international projects and pursue further growth opportunities in the Middle East hydrocarbon sector. Recent brokerage commentary sees L&T as well-placed for additional inflows.
L&T stated that the scope of the project includes engineering, procurement, construction, installation, and commissioning of the plant to process rich associated gas (RAG), alongside all associated utilities and integration with existing facilities. The RAG sourced from oil fields will be treated to remove impurities such as hydrogen sulphide, carbon dioxide, and water, producing products like lean sales gas, ethane, propane, butane, and hydrocarbon condensate.
Subramanian Sarma, L&T's deputy managing director and president said, "This project is not just about scale but is also about bringing in advanced engineering, long-term reliability measures and complex brownfield interfaces to deliver value-added products, highlighting the technical complexity and value addition involved in the project.
Meanwhile, brokerage firm Investec maintained its "buy" rating on L&T and set a target price of Rs 3,736 per share, suggesting a potential 20% upside from Tuesday's closing price.
Investec said L&T was favourably positioned to win additional large, multi-billion-dollar contracts, including the Yanbu Green Hydrogen project, Kuwait Gulf Oil order, Dorra Gas project, and Aramco Brownfield expansion, all in the Middle East. The company classifies orders above Rs 15,000 crore as "ultra-mega," underscoring the significance of this latest contract win for L&T's order book and regional presence.