Larsen & Toubro issued a clarification on January 13 after reports emerged that Kuwait is discussing plans to cancel oil project tenders worth $8.7 billion. The engineering conglomerate's stock fell 4% following the media reports, prompting the company to address market concerns about potential impact on its business.

Company's Official Response

L&T clarified that the projects referenced in the media reports were not part of the company's order book. The company stated it cannot comment on the status of tenders or commercial decisions of its clients. This clarification aimed to address investor concerns about potential revenue impact from the reported tender cancellations.

Stock Performance Impact

The company's shares dropped to a one-month low during afternoon trading on Tuesday following the reports:

Kuwait's Tender Situation

According to media reports, Kuwait's discussions about cancelling the oil project tenders stem from bids coming in well above budget. This has raised concerns over cost efficiency and fiscal impact for the projects. Analysts quoted by CNBC-TV18 indicated that L&T was the lowest bidder in tenders worth more than $4.5 billion, though this could not be independently verified.

L&T's Order Book Outlook

Despite the current market volatility, L&T maintains a positive outlook for its order inflows. In October, the company expressed confidence in exceeding its FY26 guidance of 10% growth in group order inflows. The company's management highlighted its strong order prospects pipeline:

International Exposure

L&T's order book demonstrates significant international diversification. As of September 30, 2025, international orders formed 49% of the company's total order book. The hydrocarbon prospects remain predominantly international, with approximately 93% of opportunities located overseas, while CarbonLite Solutions prospects are primarily domestic.

Recent Stock Performance

Despite the recent decline, L&T shares have shown mixed performance over different timeframes. The stock has fallen around 7% in the past five days but gained nearly 10% over the past six months, indicating underlying investor confidence in the company's long-term prospects despite short-term volatility from market reports.

Larsen & Toubro has issued an official clarification regarding media reports about potential cancellation of oil project tenders in Kuwait worth $8.7 billion. The company responded to queries from BSE Limited and National Stock Exchange of India Limited on January 13, 2026, addressing concerns raised by a news report that impacted its share price.

Company's Official Response

The engineering and construction major clarified that the projects referenced in the media report were not part of the company's current order book. This clarification came in response to a news item published on Moneycontrol.com dated January 13, 2026, titled "Kuwait is discussing cancellation of oil project tenders worth $8.7 bn, says report; L&T shares fall 3%: Here's why."

Key Clarification Points

The company made two important statements in its regulatory filing:

• The Kuwait oil projects mentioned in the media report were not part of Larsen & Toubro's order book
• The company cannot comment on the status of tenders or commercial decisions of its clients

Regulatory Compliance

The clarification was issued under Regulation 30 of the Securities and Exchange Board of India (SEBI) regulations, which requires listed companies to disclose material information that could impact investor decisions. The document was signed by Subramanian Narayan, Company Secretary and Compliance Officer, and submitted to both major Indian stock exchanges.

Market Impact Context

The original media report had suggested that Kuwait was discussing the potential cancellation of oil project tenders worth $8.7 billion, which led to a 3% decline in Larsen & Toubro's share price. The company's prompt clarification aimed to address investor concerns and provide accurate information about its involvement in the mentioned projects.