Shares of Larsen & Toubro faced significant selling pressure as reports indicated Kuwait’s contemplation of canceling $8.7 billion worth of oil project tenders. L&T clarified that the mentioned projects were not part of its existing order book, aiming to address investor concerns.
The company emphasized its inability to comment on its clients’ tender statuses or commercial decisions, despite efforts to reassure investors following the news. Despite the clarification, L&T’s stock plummeted nearly 4% during the session, hitting a one-month low of Rs 3,846 in afternoon trade.
L&T shares have dropped approximately 8% from their recent 52-week high of Rs 4,195, recorded on January 5. By the closing bell, the shares stood at Rs 3,890, marking a decline of Rs 129 or 3.21% on the National Stock Exchange (NSE).
Kuwait is reportedly reassessing various oil project tenders due to bids exceeding budget expectations, focusing on cost efficiency and the potential financial implications of these high-value projects. In October, L&T had expressed optimism about surpassing its full-year FY26 guidance of 10% growth in group order inflows.
The company highlighted a robust order pipeline of Rs 3.57 trillion for its energy projects segment, encompassing hydrocarbon prospects, CarbonLite Solutions opportunities, and clean energy projects. Notably, the majority of hydrocarbon opportunities are international, while CarbonLite Solutions and clean energy projects are primarily domestic and gas-to-power driven.
