L&T 4Q earnings flatline as war in Middle East threatens revenue targets

Mumbai-based engineering and construction giant Larsen & Toubro (L&T) reported a broadly flat net income of INR 53.3 bn (USD 560 mn) in 4Q FY 2026, even as revenue climbed 11% y-o-y to INR 827.6 bn (USD 8.7 bn), the company’s earnings release (pdf) showed.

Iran war will moderate L&T earnings: The conglomerate expects a slowdown in revenue growth moving forward, guiding for an expansion of up to 12% in the current fiscal year as the fallout from the ongoing conflict impacts its business. “The disruption will begin to show ⁠off in the first six months of the current year because shipments will all get delayed,” L&T’s Chief Financial Officer R. Shankar Raman told Reuters, adding that the impact is expected to be most visible over the next two quarters.

The Middle East remains a critical exposure for L&T: The Middle East accounted for 40% of the company’s total order book of USD 77.7 bn as of 31 March. It also brought in 34% of the fiscal year's revenue, firmly cementing the Middle East as L&T’s largest overseas market by a wide margin.

IN CONTEXT- L&T shares have taken a severe beating, with the firm shedding some INR 1.1 tn (USD 11.5 bn) in market value following the start of the war.

What’s next: Brokerages are raising red flags over potential headwinds for L&T's Middle East operations, warning that sustained geopolitical tensions could spark project delays, execution hurdles, and mounting costs. Despite the volatility, the company expects its margins to hold largely steady at around 8.3% in FY 2027, buffered by a diversified order book and a resilient pipeline of domestic demand.