Large cap stock in focus after clarification on $8.7-bn Kuwait oil tender cancellations

SYNOPSIS: L&T shares faced sentiment pressure after reports of potential Kuwait oil tender cancellations, though the company clarified the projects were not part of its order book, limiting direct business impact.

During Tuesday’s trading session, shares of a $30 billion Indian multinational engaged in EPC projects, hi-tech manufacturing, and services tumbled nearly 4.5 percent on BSE, following reports of Kuwait potentially cancelling $8.7 billion worth of projects. The company has since issued a clarification; read on for details.

With a market cap of Rs. 5.34 lakh crores, shares of Larsen & Toubro Limited closed in the red at Rs. 3,888.8 on BSE, down by over 3 percent, compared to its previous closing price of Rs. 4,018.5. The stock has delivered positive returns of over 12 percent in one year, but has fallen by around 5 percent in the last one month.

What’s the News

Shares of Larsen & Toubro Limited came under pressure on Tuesday amid external developments linked to the Middle East. Media reports indicated that Kuwait is reviewing the potential cancellation of several upstream oil project tenders worth around $8.7 billion, after bids reportedly exceeded budgeted estimates.

In response, L&T clarified that the projects mentioned in the media reports are not part of its existing order book. The company further stated that it can not comment on the tendering status or commercial decisions of its clients, thereby distancing its current business outlook from the reported developments.

Financials

In Q2 FY26, L&T reported a consolidated revenue from operations of Rs. 67,984 crores, a growth of around 7 percent QoQ and 10 percent YoY. Net profit for the quarter stood at Rs. 4,678 crores, representing a rise of more than 8 percent QoQ and 14 percent YoY.

During the same period, the company’s debt-to-equity ratio stood at 1.09, with a current ratio of 1.25. Net profit margin was at 6.88 percent, while the operating margin was reported at 10.01 percent.

In Q2 FY26, L&T reported total order inflows of Rs. 1,15,800 crore, a strong 45 percent YoY increase, comprising Rs. 40,200 crore in domestic orders and Rs. 75,600 crore from international markets. The company’s order book also expanded significantly, rising 31 percent to Rs. 6,67,000 crore by September 2025. This includes Rs. 3,40,200 crore in domestic orders and Rs. 3,26,800 crore in international orders.

Larsen & Toubro Limited is a Indian multinational engaged in EPC projects, hi-tech manufacturing and a range of service sectors. It stands out as a major technology, engineering, construction, manufacturing and financial services conglomerate with global operations.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Large cap stock in focus after clarification on $8.7-bn Kuwait oil tender cancellations appeared first on Trade Brains.