L&T Shares Drop 3% on Kuwait Oil Tender Reports, Company Issues Clarification
Larsen & Toubro shares declined 3% on Tuesday following reports of Kuwait potentially cancelling $8.7 billion oil project tenders, though the company clarified these projects are not in its order book. Despite market concerns, L&T demonstrated strong Q2 FY26 performance with revenue of ₹67,984 crores (up 10% YoY) and net profit of ₹4,678 crores (up 14% YoY). The company reported robust order inflows of ₹1,15,800 crores, up 45% YoY, with total order book expanding 31% to ₹6,67,000 crores.
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Larsen & Toubro shares faced market pressure on Tuesday, declining over 3% following reports about potential project cancellations in Kuwait's oil sector. The stock closed at ₹3,888.80 on BSE, down from its previous closing price of ₹4,018.50, amid concerns over $8.7 billion worth of upstream oil project tenders that Kuwait is reportedly reviewing for cancellation.
Market Impact and Company Response
The sell-off was triggered by media reports indicating that Kuwait is considering cancelling several upstream oil project tenders worth approximately $8.7 billion after bids reportedly exceeded budgeted estimates. However, L&T quickly moved to clarify its position on these developments.
The company issued a statement confirming that the projects mentioned in media reports are not part of its existing order book. L&T further stated that it cannot comment on the tendering status or commercial decisions of its clients, effectively distancing its current business outlook from the reported developments.
Strong Q2 FY26 Financial Performance
Despite the market reaction, L&T's recent financial performance demonstrates robust fundamentals. The company's Q2 FY26 results showed strong growth across key metrics.
| Financial Metric | Q2 FY26 | Growth (YoY) | Growth (QoQ) |
|---|---|---|---|
| Revenue from Operations | ₹67,984 crores | +10% | +7% |
| Net Profit | ₹4,678 crores | +14% | +8% |
| Net Profit Margin | 6.88% | - | - |
| Operating Margin | 10.01% | - | - |
The company maintained healthy financial ratios during the quarter, with a debt-to-equity ratio of 1.09 and a current ratio of 1.25, indicating sound financial management.
Robust Order Book Growth
L&T's order inflow performance in Q2 FY26 highlighted the company's strong market position and execution capabilities.
| Order Metrics | Q2 FY26 | Growth (YoY) |
|---|---|---|
| Total Order Inflows | ₹1,15,800 crores | +45% |
| Domestic Orders | ₹40,200 crores | - |
| International Orders | ₹75,600 crores | - |
| Total Order Book (Sep 2025) | ₹6,67,000 crores | +31% |
The order book composition shows a balanced mix with ₹3,40,200 crores in domestic orders and ₹3,26,800 crores in international orders as of September 2025.
Stock Performance Context
While Tuesday's decline brought the stock down over 3%, L&T shares have delivered positive returns of over 12% in the past year. However, the stock has faced some pressure recently, falling approximately 5% over the last month. With a market capitalisation of ₹5.34 lakh crores, L&T remains one of India's largest engineering and construction conglomerates.
Company Profile
Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and a range of service sectors. The company operates as a major technology, engineering, construction, manufacturing, and financial services conglomerate with global operations across multiple markets.
Historical Stock Returns for Larsen & Toubro
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.27% | -6.34% | -4.58% | +9.79% | +12.21% | +188.00% |
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