On Tuesday, L&T’s share price fell more than 4% after news that Kuwait might pull the plug on oil project tenders worth about $8.7 billion.
Why L&T Shares Fell
Reports say Kuwait is reviewing several oil contracts because the bids came in higher than expected, putting pressure on its budget. If the tenders are cancelled, it could affect companies that were bidding, including L&T, which had been the lowest bidder for projects worth over $4.5 billion.
L&T’s Response
The company said the projects mentioned in the media reports are not part of its order book. It also added that it cannot comment on the status of client tenders or commercial decisions.
Order Book Outlook
Despite the Kuwait news, L&T remains confident about its full‑year FY26 guidance. Management highlighted a strong pipeline of about ₹3.57 trillion in energy projects, mainly international hydrocarbon work (about 93% overseas). Other prospects include carbon‑lite solutions and clean‑energy projects.
- Hydrocarbon prospects: ~₹2.93 trillion
- CarbonLite Solutions: ~₹0.46 trillion
- Clean‑energy (mostly gas‑to‑power): ~₹0.18 trillion
New Bridge Order Boosts Outlook
Earlier on the same day, L&T announced that its transportation arm won a major contract worth between ₹1,000 crore and ₹2,500 crore. The project is an arterial cable‑stayed bridge over the Muri Ganga River in West Bengal, spanning 3.2 km with advanced traffic‑management and monitoring systems. The bridge will give the two‑lakh‑plus residents of Sagar Island year‑round road access, improve healthcare reach, and support pilgrimage traffic during the Ganga Sagar Mela.
Recent Stock Performance
L&T’s shares have slid about 7% over the last five trading days, though they are up nearly 10% over the past six months. The stock now trades around ₹3,846, a one‑month low, and carries a price‑to‑earnings ratio of 28.87.
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.