Larsen & Toubro announced a major order win while facing analyst concerns over Middle East market developments. The infrastructure conglomerate secured a significant contract for India's largest pumped storage project, even as brokerages reduced their estimates due to regional uncertainties.

Major Order Win Details

The company's Heavy Civil Infrastructure business vertical won the order from Torrent Energy Storage Solutions Pvt. Ltd. for the construction of the 3,000 MW Saidongar-1 pumped storage project in Raigad, Maharashtra. The project specifications and contract details are outlined below:

This pumped storage project represents India's biggest facility of its kind, highlighting L&T's capabilities in large-scale infrastructure development.

Middle East Market Concerns

The order announcement comes amid analyst caution regarding L&T's Middle East exposure. MEED reported Kuwait's discussions about order cancellations worth $8.7 billion, prompting market concerns. L&T clarified that these potential cancellations were not part of its existing order book.

During its Q2 earnings conference call, L&T revealed it held the lowest bidder position on three of five Kuwait bids totaling approximately $4.5 billion. While all prices exceeded budget estimates, the company maintained its competitive positioning.

Analyst Revisions and Outlook

Multiple brokerages have revised their estimates following the Middle East developments:

JM Financial Assessment

JM Financial noted that Tuesday's 3% stock decline largely factored in potential order deferrals.

Axis Capital Analysis

Axis Capital highlighted the Kuwait situation's significance, noting the $4.5 billion prospect represented 12% of L&T's core inflow estimate for FY26. The brokerage expressed concerns about achieving outperformance beyond the 10% consolidated inflow growth guidance.

The firm warned that sustained oil prices below $60 per barrel could slow hydrocarbon, infrastructure, and urban development capital expenditure across the Middle East.

UBS Perspective

UBS emphasized that the Kuwait orders were part of L&T's prospect pipeline, with the lowest bidder status providing high conversion confidence. The brokerage noted L&T's conservative 10% FY26 order growth guidance compared to consensus expectations of 22%, identifying potential downside risks that could limit near-term upside.

Market Performance

Shares of L&T traded 0.40% lower at ₹3,874.70, extending losses for the fifth consecutive session. The stock performance reflects market concerns about the company's Middle East exposure and revised growth prospects despite the positive domestic order win.

Larsen & Toubro 's Heavy Civil Infrastructure business vertical has secured a significant milestone by winning a large contract for India's biggest pumped storage project. The company announced on January 14, 2026, that it has been awarded the contract by Torrent Energy Storage Solutions Pvt Ltd (earlier known as Torrent PSH 3 Pvt Ltd) for the 3000 MW Saidongar-1 Pumped Storage Project in Raigad, Maharashtra.

Project Details and Scope

The Saidongar-1 Pumped Storage Project represents a major infrastructure development for India's energy sector. The project specifications and contract details are outlined below:

The comprehensive scope of work includes design, engineering and execution of all civil and hydro-mechanical jobs associated with the project. This positions L&T to play a pivotal role in bringing to life a project of immense significance, expected to enhance grid reliability and energy security for Maharashtra and beyond.

Strategic Significance

This contract award reinforces L&T's position as a trusted partner for large-scale, high-capacity pumped storage solutions. The company's track-record of engineering excellence, timely execution and world-class safety standards has enabled it to secure this project of national importance.

Pumped storage projects like Saidongar-1 serve critical functions in India's energy infrastructure:

• Ensuring grid stability and meeting peak power demand
• Storing surplus energy during low-demand periods
• Releasing stored energy during high-demand periods
• Providing reliable and flexible energy solutions
• Strengthening India's energy security
• Supporting long-term decarbonisation goals

Company Background

Larsen & Toubro operates as a USD 30.00 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services across multiple geographies. The company's strong, customer-focussed approach and constant quest for top-class quality have enabled it to attain and sustain leadership in its major lines of business for eight decades.

Contract Classification Framework

L&T categorizes its orders based on value ranges, with the Saidongar-1 project falling under the "Large" classification:

This contract award demonstrates L&T's continued strength in securing substantial infrastructure projects and reinforces its market position in the heavy civil infrastructure segment.