Domestic brokerage firm JM Financial said L&T could face execution disruptions in its Middle East projects, while a potential slowdown in the UAE real estate market may intensify competition. The company has recorded strong growth in order inflows from the Middle East, which now accounts for 37% of its Rs 7.33 lakh crore order book as of 9MFY26. During 9MFY26, the region also contributed 33% of total order inflows of Rs 3.46 lakh crore.
L&T has established itself as a leading contractor in the hydrocarbons segment, with significant operations along the Persian Gulf, particularly in eastern Saudi Arabia. However, the closure of sea lanes and related supply chain disruptions could adversely impact project execution. Additionally, a real estate boom in the UAE has helped cushion competitive pressures from Chinese players. If real estate activity slows due to heightened security concerns in the region, competitive intensity could rise, potentially affecting margins.
Israel and the United States carried out strikes on Iran on the morning of February 28, triggering a sharp escalation in regional tensions. Iran retaliated by targeting US naval bases in Bahrain, the UAE and Kuwait. The strikes reportedly killed Iran’s Supreme Leader, Ali Khamenei. In the aftermath, Iran warned that “there were no red lines now and everything is possible”, before launching a barrage of attacks across the Middle East and into Israel, leading to widespread airspace closures, stranded travellers and significant disruption to daily life and business activity across the region.
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L&T Q3 snapshot
Engineering and construction major Larsen & Toubro (L&T) reported a 4.3% YoY decline in its December quarter consolidated net profit at Rs 3,215 crore compared to Rs 3,359 crore reported in the year-ago period. The profit after tax (PAT) is attributable to the owners of the parent.
The company’s revenue from operations stood at Rs 71,450 crore in Q3FY26, up 10% over Rs 64,668 crore posted in the corresponding period of the last financial year.The total consolidated PAT for the quarter includes a one-time material provision of Rs 1,191 crore (net of tax and NCI) towards employee benefits arising from the implementation of the new labour codes, the company filing said.
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