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L&T Shares Plunge on Kuwait Project Fears, Company Issues Clarification

Larsen & Toubro's shares fell sharply after media reports suggested Kuwait might cancel major oil project tenders. The company quickly clarified that the projects in question were not part of its current order book. Despite the clarification, the stock dropped nearly 4%, hitting a one-month low. L&T had previously expressed confidence in its growth outlook, highlighting a robust near-term project pipeline.

Key Points: L&T Shares Fall 4% on Kuwait Oil Project Cancellation Reports

  • L&T clarifies projects not in order book
  • Shares fall 4% to one-month low
  • Kuwait reviewing $8.7B oil tenders
  • Company highlights strong Rs 3.57T pipeline
2 min read

L&T clarifies Kuwait project reports, shares fall to 1-month low

L&T clarifies Kuwait oil projects not in its order book after reports of tender cancellations cause shares to hit a one-month low.

"the projects referred to in the said report were not part of the Company's order book - L&T"

Mumbai, Jan 13

Shares of Larsen & Toubro came under sharp selling pressure on Tuesday after media reports suggested that Kuwait is considering cancelling oil project tenders worth $8.7 billion.

L&T said the projects mentioned in the reports were not part of its current order book.

"With reference to the media report regarding discussions on possible cancellation of certain oil project tenders in Kuwait, the Company would like to clarify that the projects referred to in the said report were not part of the Company's order book," L&T said in its stock exchange filing.

The company added that it cannot comment on the status of tenders or the commercial decisions taken by its clients, seeking to allay investor concerns triggered by the news.

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

Despite the clarification, the stock fell nearly 4 per cent during the session and slipped to a one-month low of Rs 3,846 in afternoon trade.

L&T shares have now declined around 8 per cent from their recent 52-week high of Rs 4,195, which was touched on January 5.

At the closing bell, the shares were at Rs 3,890, down by Rs 129 or 3.21 per cent on the National Stock Exchange (NSE).

According to a report by MEED, Kuwait is reviewing several oil project tenders after bids for multiple contracts came in significantly above budget.

The discussions are reportedly centred on cost efficiency and the potential fiscal impact of such high-value projects.

Earlier, in October, L&T had expressed confidence about its growth outlook, saying it expects to exceed its full-year FY26 guidance of 10 per cent growth in group order inflows.

The company had highlighted a strong near-term order pipeline of Rs 3.57 trillion for its energy projects segment.

This pipeline includes hydrocarbon prospects worth Rs 2.93 trillion, CarbonLite Solutions opportunities of Rs 0.46 trillion, and clean energy prospects of Rs 0.18 trillion.

L&T had also noted that hydrocarbon opportunities are largely international, with about 93 per cent of these prospects coming from overseas markets, while CarbonLite Solutions are mainly domestic and clean energy projects are driven largely by gas-to-power opportunities.

- IANS

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Reader Comments

P
Priya S
Shows the risk of being too dependent on international projects, especially in the Gulf. 93% of hydrocarbon prospects are overseas? That's a huge concentration risk. Hope they are diversifying more into domestic clean energy projects. 🇮🇳
R
Rohit P
Fell 4% on a rumor about projects they don't even have! The clarification came fast, but the damage was done. Operators and FIIs must have used this to shake out weak hands. Holding my shares, not worried. L&T is an Indian pride company.
S
Sarah B
Interesting to see the market's reaction. Even with a Rs 3.57 trillion pipeline, news like this causes a sell-off. It highlights how global economic pressures (like Kuwait reviewing budgets) can impact our top companies. A good case study in market volatility.
K
Karthik V
The real story is the order pipeline. Rs 3.57 lakh crore! That's massive. One negative news item shouldn't overshadow that. The future is in CarbonLite and clean energy. Hope management's communication with investors is more proactive next time.
M
Meera T
As a long-term shareholder, I'm not too concerned. These dips happen. Their fundamentals are strong, and they are a key player in India's infrastructure story. The clarification was clear. Time to average down if you have the conviction! 💪

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