US-Iran war: How India's largest infra company L&T could be impacted 

The war in West Asia has wrecked stock market sentiment for India's largest engineering and construction company Larsen & Toubro (L&T). L&T has a strong presence in the Middle East's infrastructure markets and that was enough for bears to trounce the stock on Monday. 

L&T shares, which hit a record high of Rs 4440 a week ago (February 24), ended 5% lower at Rs 4066.45 on Monday. 

Brokerage JM Financial noted that L&T secured 37% of its orders  and 33% of FY26 inflows from the Middle East region. Brokerage Macquarie warned of operational uncertainties for the engineering firm.

The Indian infra giant faces potential delays and profit margin risks in its Gulf region projects due to worker safety concerns and mandatory evacuations, according to Macquarie. 

These safety-related disruptions could pose potential risks to the company's profit margins amid the geopolitical turmoil in the region. 

The investment firm cited risks to ongoing infrastructure and hydrocarbon projects, leading to cancellations and delays. These challenges stem from changing situations in the Gulf region, creating operational uncertainties for the engineering conglomerate.

L&T's most recent order win was worth up to Rs 10,000 crore in the Middle East and India. The contracts involved covering of high-voltage transmission lines, substations, and associated grid infrastructure required to strengthen power evacuation and regional connectivity. 

As of December 31, 2025, L&T reported a massive consolidated order book of Rs 7.33 lakh crore, rising 30% year-on-year. The company won new orders worth Rs 1.35 lakh crore in Q3, with 49% coming from international markets, driven largely by Middle East projects in hydrocarbons and infrastructure.