L&T shares have declined more than 22% in the past one month, as the raging war raised investor concerns for the company, which has significant exposure to the Middle East. L&T Group’s deputy managing director and president, Subramanian Sarma, said that L&T operates more than 100 sites across key markets, including Saudi Arabia, the UAE, Qatar, Kuwait and Oman.
“About 95% of our sites are running business as usual, with no disruption. Only a small portion has been temporarily suspended due to proximity to sensitive areas or as a precaution,” he said.
However, he flagged supply chain disruptions and rising insurance costs as emerging risks, while underscoring the strategic importance of the Middle East market to its overall business.
L&T has 8,000 staff and 2,000 of their family members, along with an additional 20,000 contractual workers at its sites in the Middle East, Sarma said. The company has not initiated any evacuation of personnel yet.
When asked about the impact on profit margins, the top company official declined to comment to PTI and said he hoped that the company would be able to pass on the increase in costs to customers. However, if logistical issues do not get resolved in three months, there could be an impact through revenue deferment, he added.
West Asia continues to be a critical market for L&T. As of December 2025, the region accounted for nearly 40% of the company’s total order book, according to a report by Motilal Oswal Financial Services. Within its international portfolio, the region contributes roughly 75% of the order book. Also Read | Sensex down 8K pts in 1 month. Experts recommend flexicap, multi asset funds & continuing SIPs
What lies ahead?
Macquarie remained bullish on the stock, with an ‘overweight’ rating and a target price of Rs 4,910 per share, CNBC-TV18 reported. This implies an upside potential of nearly 43% from the stock’s previous closing price of Rs 3,434.50 apiece on NSE.
The international brokerage reportedly said it sees significant value in the large-cap stock after the 22% correction last month, adding that the 5% of operations that may be affected by the war, as suggested by the top official, do not contribute significantly to revenue.
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