Larsen & Toubro shares experienced significant pressure on Tuesday, falling 3% to an intraday low of ₹3,885.50 on the BSE following reports of potential project cancellations in Kuwait. The decline came after news emerged that Kuwait may cancel oil project tenders worth $8.7 billion, creating uncertainty around the engineering giant's overseas order book.

Kuwait Oil Project Concerns

The market reaction was triggered by reports from MEED, cited by CNBC-TV18, indicating that the Kuwait Oil Company (KOC) is conducting a comprehensive review of its capital expenditure plans. This review has put several large tenders at risk of cancellation, raising concerns among investors about L&T's international project pipeline.

According to MEED's report, the review was initiated after bids for multiple contracts came in well above the allocated budget, raising concerns over cost efficiency and fiscal impact. L&T had emerged as the lowest bidder for tenders valued at over $4.5 billion, making the potential cancellation particularly significant for the company's future revenue prospects.

Domestic Order Win Provides Relief

Despite the overseas challenges, L&T announced a positive development on the domestic front. The company's Transportation Infrastructure business secured a significant contract for constructing an arterial Cable-Stayed Bridge over the Muriganga River in South 24 Parganas, West Bengal.

The bridge project will provide direct, all-weather connectivity to Sagar Island, an area currently dependent on ferry services that are frequently disrupted during adverse weather conditions. The infrastructure will be equipped with advanced features including:

• Advanced Traffic Management Systems
• Bridge Health Monitoring System
• Architectural Bridge Lighting
• Hybrid Street Lighting
• Comprehensive road infrastructure

Strategic Impact and Benefits

The Muriganga River bridge project carries significant strategic importance beyond its immediate connectivity benefits. The infrastructure is expected to enhance pilgrimage connectivity for millions of devotees traveling to the annual Ganga Sagar Mela, recognized as the second-largest religious congregation in India after the Kumbh Mela.

The project's impact extends to multiple sectors, with expectations of driving local economic development through enhanced trade, tourism, and business opportunities on the island. The improved connectivity will also facilitate better healthcare access and economic prospects for the island's residents, demonstrating L&T's continued focus on socially impactful infrastructure projects.

While the Kuwait project uncertainty has created near-term pressure on L&T shares, the domestic order win highlights the company's diversified project portfolio and strong position in India's infrastructure development sector.

Larsen & Toubro has secured a major infrastructure order worth ₹1,500-2,500 crores for its transportation infrastructure vertical, involving the construction of a strategic cable-stayed bridge in West Bengal. Despite this significant order win, the company's shares traded in negative territory during Tuesday's session, declining over 2% amid broader market concerns.

Major Bridge Construction Order

The transportation infrastructure division has won the contract for constructing an arterial cable-stayed bridge over the Muri Ganga River in South 24 Parganas, West Bengal. The comprehensive project scope demonstrates the company's capabilities in complex infrastructure development.

The bridge will feature advanced infrastructure including traffic management systems, bridge health monitoring system, architectural bridge lighting, hybrid street lighting, and complete road furniture. This project holds strategic importance as it will provide direct, all-weather road connectivity to Sagar Island, replacing the current dependency on ferry services that face frequent weather-related disruptions.

Strategic Acquisition Completed

On January 12th, L&T executed a Share Purchase Agreement to acquire the remaining 40% stake in L&T Sapura Shipping Private Limited from Sapura Nautical Power Pte Limited. The acquisition details highlight the company's consolidation strategy:

Market Performance and External Pressures

L&T shares traded at ₹3,931.95 on BSE, down from the previous closing price of ₹4,018.50, representing a decline of over 2%. The stock maintains a market capitalization of ₹5.40 lakh crores and has delivered positive returns of over 13% in the past year, though it has declined approximately 4% in the last month.

External factors have contributed to market pressure, particularly reports that Kuwait is reviewing potential cancellation of upstream oil project tenders worth approximately $8.7 billion due to bids exceeding budgeted estimates. This development creates near-term sentiment concerns given L&T's strong track record in securing large EPC contracts in the Middle East region.

Strong Financial Performance in Q2 FY26

The company reported robust financial metrics for Q2 FY26, demonstrating strong operational performance across key parameters:

The company's financial ratios reflect stable operational metrics with a debt-to-equity ratio of 1.09, current ratio of 1.25, net profit margin of 6.88%, and operating margin of 10.01%. The significant expansion in order book to ₹6,67,000 crores, comprising ₹3,40,200 crores in domestic orders and ₹3,26,800 crores in international orders, provides strong revenue visibility for future periods.

Social and Economic Impact

The West Bengal bridge project extends beyond infrastructure development, offering substantial social benefits. The connectivity solution will serve over 2 lakh residents of Sagar Island, improving access to healthcare services, enhancing mobility options, and supporting local economic activities. The all-weather connectivity represents a significant upgrade from the existing ferry-dependent transportation system.