The Ministry of Finance is reportedly considering plans to remove five-year-old restrictions on Chinese firms bidding for government contracts, according to news agency Reuters. This potential policy shift has sparked discussions about its impact on various sectors and stocks, particularly after infrastructure major Larsen & Toubro witnessed a sudden stock price decline.

Analyst Assessment: Sector-Specific Impact Expected

Priyankar Biswas, Industrials and Logistics Research Analyst at JM Financial Institutional Securities, provided insights on the potential market implications during an exclusive interaction with NDTV Profit on January 9, 2025. According to Biswas, while the development could be negative for the transformers space, the impact would be minimal for blue-chip companies.

Transformer Sector Faces Challenges

Biswas highlighted significant supply chain issues in the transformer sector, noting that India faces a lack of transformer availability coupled with high prices. "So, maybe this is an attempt to bring the pricing discipline in place as far as transformer space is concerned. If this plays out it could be a 'negative' for companies with transformer-based exposure," he explained.

Companies that may face negative impact include those with transformer-motor exposure, such as CG Power and Industrial Ltd. The analyst emphasized that even before the Galwan standoff, Chinese firms never won orders exceeding $2 billion, suggesting limited historical market penetration.

Infrastructure Giants Expected to Weather Changes

Regarding major infrastructure companies, Biswas expressed confidence in their resilience. "We don't expect an L&T to get hurt. In fact, if the supply check bottlenecks along the way are sorted out then these companies will be opportunities," he stated. The analyst characterized the recent stock price drop in L&T as a "knee-jerk" reaction rather than a fundamental concern.

Background: Five Years of Restrictions

The restrictions on Chinese firms were implemented in 2020 following deadly border clashes between Indian and Chinese troops. Under these measures, Chinese companies were barred from competing for Indian government contracts with an estimated value range of $700-750 billion. To participate, they required registration with a government committee and political security clearances.

These curbs have reportedly weighed on government departments and ministries, causing delays in project development, particularly in the power sector. The restrictions disrupted government plans to expand thermal power capacity to approximately 307 GW over the next decade.

Policy Considerations and Market Outlook

The potential policy change comes amid India's efforts to revive commercial relations with Beijing as border and diplomatic tensions have eased recently. The move appears aimed at addressing practical challenges in project execution while maintaining strategic considerations.

Biswas concluded that companies like Siemens would see limited impact because most of their orders are driven by the smart infrastructure space, which operates in a free pricing environment. The overall assessment suggests a nuanced impact across different sectors rather than broad market disruption.

Source: https://www.ndtvprofit.com/markets/minimal-impact-on-lt-negative-for-transformers-will-easing-china-curbs-weigh-on-stocks-analyst-decodes

L&T Finance Limited has announced a conference call to discuss its Q3FY2025-26 financial performance and provide a strategy update to investors and analysts. The company informed the National Stock Exchange of India and BSE Limited about this scheduled investor meet on January 8, 2026.

Conference Call Details

The investor conference call has been scheduled with comprehensive access options for both domestic and international participants.

Registration and Access

Participants can pre-register for the conference call through a dedicated registration link provided by the company. The pre-registration system is designed to streamline access for investors and analysts planning to join the discussion.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory framework requires listed companies to inform stock exchanges about material events and investor interactions.

Post-Call Resources

L&T Finance Limited has committed to making comprehensive materials available following the conference call. The company will host the following resources on its investor website at www.ltfinance.com/investors :

• Financial performance presentation
• Complete audio recording of the conference call
• Full transcript of the discussion

The discussion during the conference call will follow the same format as presentations made available on the company's website and stock exchanges. This ensures consistency in information dissemination and maintains transparency standards for all stakeholders.

The company secretary and compliance officer, Apurva Rathod, signed the official communication to stock exchanges, confirming the scheduled investor interaction for Q3FY2025-26 financial performance review and strategy update.