L&T shares extend gains, rise over 3% after ‘significant’ order win; key details

Larsen & Toubro Ltd (L&T) shares gained for the second straight session on Wednesday, following a significant domestic order win that is helping investors look past the company's looming geopolitical headwinds in West Asia. 

At 11:06 am, L&T shares rose 3.41% to Rs 3635.30 apiece on the BSE. The stock climbed as much as 3.54% to touch a day’s high of Rs 3640 per share, up from its previous close of Rs 3515.35 apiece. The counter has jumped 5.19% in the previous session alone.

In an exchange filing on Wednesday, L&T announced that its water & effluent treatment (WET) business vertical secured a ‘significant’ design-build-operate contract from the Guwahati Metropolitan Drinking Water & Sewerage Board in Assam. 

Based on the infrastructure giant's internal project classification matrix, a ‘significant’ order is valued between Rs 1,000 crore and Rs 2,500 crore. The 24x7 water management project aims to provide households in South-East Guwahati with a safe, continuous water supply, the company said.

“The scope includes design, supply, installation, construction, testing and commissioning of
barge-mounted intake system, raw water rising main, water treatment plant, reservoirs,
booster pumping station, distribution network with household service connections,” the exchange filing noted.

Meanwhile, in a latest note, brokerage firm JM Financial flagged near-term challenges for the company stemming from the escalating West Asia crisis. 

“Rising air freight is also an emerging challenge. Key industrials such as L&T are staring at near-term challenges; even so, the long-term outlook remains intact,” the brokerage said.

“In 3QFY26, the Middle East made up 36% of L&T’s revenue and 37% of order book. Assuming the conflict dies down and normalisation takes two quarters, impact on FY27E core EPS can be 9%+,” JM said.