L&T Stock Price Surges 7% Amid Iran-US Ceasefire, Middle East Exposure Regains Attention
Indian Shares Surge as US-Iran Truce Eases West Asia Tensions
Shares of Larsen & Toubro (L&T) surged more than 7% on March 8, hours after the announcement of a two-week ceasefire in the ongoing West Asia conflict. The engineering major's shares were trading at Rs 3,991.30, up Rs 268.00 or 7.20% on the National Stock Exchange (NSE).
This rally marks a sharp reversal from last month, when escalating hostilities in the Middle East weighed heavily on sentiment. At the peak of tensions, L&T 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.
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L&T's International Business Remains a Key Driver
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.
Recent Financial Performance
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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.
Two-Week Truce: Key Details
The two-week ceasefire has been welcomed by various parties involved in the conflict. Key details of the truce include:
| Party | Position |
|---|---|
| US | Donald Trump agreed to a proposed two-week ceasefire with Iran, provided shipping through the Strait of Hormuz remains uninterrupted. |
| Iran | 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. |
| Pakistan | Invited both sides for talks in Islamabad on Friday. |
Investor Takeaway
Investors should be cautious of the potential impact of geopolitical risks on L&T's stock price.
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