08 Apr , 2026 By : Debdeep Gupta
Shares of Larsen & Toubro surged more than 7% on March 8 hours after the announcement of a US-Iran truce in the ongoing West Asia conflict.
Shares of Larsen & Toubro were trading at Rs 3,991.30, up Rs 268.00 or 7.20% on NSE. The rally marks a sharp reversal from last month, when escalating hostilities in the Middle East weighed heavily on sentiment.
At the peak of tensions, the engineering major slipped below the Rs 5 lakh crore market capitalisation mark on March 13 and emerged as the top loser on the Nifty that day.
The newly announced two-week ceasefire, declared in the early hours of Wednesday, is expected to provide relief to L&T, which has significant exposure to the region. Investor sentiment had taken a hit amid concerns over project disruptions and geopolitical risks.
L&T's dependence on international business remains substantial. For the nine months ended December 31, 2025, international orders stood at Rs 1,91,084 crore, accounting for 55% of total order inflows. In the December quarter alone, international orders came in at Rs 66,848 crore, contributing 49% of inflows, while international revenues were Rs 38,775 crore, making up 54% of total revenue.
The company has highlighted the Gulf Cooperation Council (GCC) region as a key growth driver, citing strong investment momentum in AI infrastructure, data centres, and large-scale urban development projects in Saudi Arabia and the UAE.
However, in January, L&T reported a 4.2% year-on-year decline in consolidated net profit to Rs 3,215 crore for the December quarter, primarily due to a one-time provision related to employee benefits under new labour codes. This compares with Rs 3,359 crore in the year-ago period.
What is the two-week truce? Here's what we know:
•Donald Trump said he would agree to a proposed two-week ceasefire with Iran, provided shipping through the Strait of Hormuz remains uninterrupted.
•Abbas Araghchi indicated that Tehran would halt hostilities if attacks on Iran cease.
•Israel backed the US move to pause strikes on Iran but clarified the ceasefire does not extend to Lebanon, a claim disputed by Pakistan.
•The truce was announced just over an hour before Trump's deadline warning of severe consequences if no agreement was reached.
•Pakistan, acting as a mediator, has invited both sides for talks in Islamabad on Friday.
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