L&T soars 6%, records sharpest intra-day rally since October 2024

In the month of March, the stock price of L&T tanked 22 per cent from a level of ₹4,280 to ₹3,341.90 as of yesterday.

Larsen & Toubro (L&T) share price movement

 

Share price of Larsen & Toubro (L&T) moved higher by 6.2 per cent to ₹3,548 on the BSE in Tuesday’s intra-day trade, thus recorded its sharpest intra-day rally in the past 17 months. Earlier, on October 31, 2024, L&T stock soared 7.3 per cent in intra-day deals. 

The BSE Sensex has rallied nearly 2 per cent after President Trump postponed strikes on Iran’s power plants, citing ongoing discussions aimed at ending the conflict. 

On Monday, March 23, 2026, the benchmark index slipped 2.5 per cent following Trump’s Saturday warning that Iran had until Monday evening to reopen the Strait of Hormuz or face US strikes on its power infrastructure. In response, Iran threatened to mine the entire Persian Gulf and block all access routes through the Strait if its power plants were targeted. 

 

Meanwhile, in the month of March, the stock price of L&T tanked 22 per cent from a level of ₹4,280 to ₹3,341.90 yesterday. It had hit a 52-week high of ₹4,440 on February 24, 2026.  CATCH STOCK MARKET UPDATES TODAY LIVE

L&T’s media interaction on project execution in the West Asia

 

In a select media briefing over the weekend, Subramanian Sarma, deputy managing director and president of L&T, said, “Despite the unfortunate developments in the region, roughly 95 per cent of L&T’s 100-plus sites are operating as 'business as usual.'" 

While logistics could become an issue and business may feel the heat if the war prolongs beyond three-four months, more opportunities could also emerge once the war ends, the management said. 

L&T on March 21, 2026 reported that 95 per cent of its 100+ project sites in West Asia remain operational despite ongoing geopolitical tensions, with only 5 per cent temporarily paused near conflict zones.  

The region contributes 33 per cent of revenue and 37 per cent of the ₹7.33 trillion order backlog, with ~₹3.46 trillion order inflows in April to December (9MFY26), of which one-third is from West Asia. While operations, billing, and order inflows remain stable, the company flagged logistics disruptions and rising input/insurance costs as near-term concerns. 

According to ICICI Securities, L&T’s media interaction is a sentiment stabilizer, reassuring that Middle East operations remain largely unaffected and execution is intact. The stock has corrected 20–23 per cent (with broader capital goods names down 10–20 per cent), Management commentary reduces uncertainty and boost positive sentiment.   ALSO READ | HDFC Bank, L&T: How to trade these 2 heavyweights at CMP? Analyst says this

  However, supply chain disruptions, elevated freight costs, and insurance pressures pose risks to margins if the conflict prolongs beyond 3–4 months. L&T’s inventory buffers (3–4 months), diversified project mix (fixed + pass-through), and proactive risk management mitigate immediate risks, but sustained disruptions could impact execution timelines, the brokerage firm said in a note. 

While Motilal Oswal Financial Services are positive about the L&T’s growth outlook based on its strong order book and prospects of healthy core PAT earnings over FY25-28E, the brokerage firm do believe that near-term headwinds persist on international revenue, with the Middle East accounting for nearly 39-40 per cent of its total order book as of 9MFY26; and information technology (IT) subsidiary’s valuations, which are getting impacted by AI-led disruption. 

“L&T has diversified its country base, such as Saudi Arabia, Kuwait and Qatar, and has also diversified its project mix across hydrocarbon – onshore as well as offshore, gas-related projects, renewables, and transmission. We believe that in the near term, execution can be impacted by supply chain disruption, while in the long term; the company has adequate risk management in place for existing contracts. In the medium to long term, whenever oil prices have moved up, overall capex spending has also moved up in the GCC region, where L&T has now created a strong position,” the brokerage firm said.  =======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.