Larsen & Toubro slips 3%, trades lower for fourth straight day; here's why

With reference to news reports that Kuwait is discussing cancellation of oil project tenders worth $8.7 billion, L&T said the said project was not a part of its order book

Larsen & Toubro (L&T) share price today

 

Larsen & Toubro (L&T) stock hit a two month low at ₹3,884, falling 3 per cent on the BSE in Tuesday’s intra-day trade on reports that Kuwait is discussing plans to cancel oil project tenders worth $8.7 billion. The stock was trading at its lowest level since November 7, 2025.

 

The stock price of the civil constructions major quoted lower for the fourth straight day, falling 7 per cent during the period. It had hit a record high of ₹4,194.70 on January 5, 2026.

 

Meanwhile, in the past six months, L&T has outperformed the market by soaring 11 per cent, as compared to 1.4 per cent rise in the BSE Sensex.

 

 

Why L&T stock price under pressure on Tuesday?

 

According to reports, Kuwait's discussions come after bids for several contracts came in well above the budget, raising concerns over cost efficiency and fiscal impact, Moneycontrol reported quoting media company Middle East Economic Digest's (MEED).

 

Clarifying on the issue, however, L&T said the projects referred to in the news report were not part of the company's order book.

Further, the company can't comment on the status of tenders or commercial decisions of its clients, it said.

 

L&T wins significant order for transportation infrastructure business

 

The Transportation Infrastructure business vertical of L&T has won a significant order (₹1,000 crore to ₹2,500 crore) for an arterial Cable-Stayed Bridge over the Muri Ganga River in South 24 Parganas district of West Bengal.

 

L&T’s scope involves construction of 2+2 lane 3.2 km Extra dosed Cable-Stayed Bridge with a maximum span of 177m, along with 0.9 km approach road on Kakdwip Side and 0.65 km approach road on Sagar Island side, the company said in an exchange filing.

 

Meanwhile, in another development, L&T has executed a share purchase agreement to acquire the 40 per cent stake held by Sapura Nautical Power Pte Ltd in L&T Sapura Shipping Private Limited (LTSSPL), making it a 100 per cent wholly-owned subsidiary upon completion (expected by January 31, 2026). The acquisition involves 63.5 million equity shares at ₹19.26 per share, implying a total equity consideration of ₹122.4 crore, along with repayment of a shareholder loan of $16.93 million to Sapura.

 

LTSSPL owns and operates a Heavy Lift cum Pipe Lay Vessel (HLPV) used in offshore platform installation and subsea pipeline/cable laying, a segment complementary to L&T’s offshore EPC business. With FY25 turnover of ₹154.1 crore (FY24: ₹162.5 crore), full ownership enhances asset availability, scheduling flexibility and margin capture for offshore hydrocarbon projects in India and the Middle East.

 

L&T order book outlook

 

L&T in the Q2 earnings conference call said the company anticipates healthy revenue growth and a significant increase in order inflow, indicating a promising performance in the future. Furthermore, its healthy order book is expected to drive strong performance in the upcoming quarters.

 

L&T witnessed strong ordering activity in Q2FY26 across India and the Middle East, with order inflows growing 45 per cent year-on-year (YoY). Supported by this sustained momentum, the order book expanded to ₹6.67 trillion as of September 2025, reflecting a 31 per cent YoY increase and providing a strong revenue visibility in the near future, the management said.

 

L&T said it has an overall prospects pipeline of ₹10.4 trillion vis-à-vis ₹8.1 trillion at the same time last year. This represents an increase of 29 per cent on a YoY basis. The increase in the prospects pipeline is mainly led by Infrastructure and Hydrocarbon segments, the company said.

 

The government's continued investment in infrastructure and the manufacturing sector is likely to provide substantial growth opportunities for the company, bolstering its prospects for sustained success. Recent strategic MOUs and partnerships in the company's renewables, green energy, defense, and semiconductor businesses have laid a strong foundation for future growth, positioning the company for long-term success, according to analysts at Geojit Investments.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.