L&T shares rebound 3% as Donald Trump signals potential end to war. Why does it matter for the construction major?

Shares of Larsen & Toubro (L&T) rose as much as 3% to hit an intraday high of Rs 3,443 on the BSE on Tuesday, recovering from the previous session’s 2.7% decline, after U.S. President Donald Trump said Iran had held “very good and productive conversations” aimed at a complete resolution of hostilities.

The development is significant for the construction major given its sizable exposure to the Middle East. L&T Group’s Deputy Managing Director and President, Subramanian Sarma, noted that the company operates over 100 sites across key markets such as Saudi Arabia, the UAE, Qatar, Kuwait and Oman. L&T has 8,000 staffers and 2,000 of their family members, along with an additional 20,000 contractual workers at its sites in the Middle East.

Further, West Asia continues to be a critical market for L&T. As of December 2025, the region accounted for nearly 40% of the company's total order book, according to a report by Motilal Oswal Financial Services. Within its international portfolio, the region contributes roughly 75% of the order book.


A recent report by CNBC TV-18 stated that the engineering, procurement and construction major has not seen any major impact from the ongoing war between Iran and US-Israel, and around 95% of its projects are continuing to function as usual.

Given the conflict, L&T's share price has corrected over 20% in the past month and has declined 18% since the beginning of the new year.

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 & NCI) towards employee benefits arising from the implementation of the new labour codes, the company filing said.

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