L&T clarifies as stock falls 4% on report of Kuwait cancelling $8.7-bn tenders, says 'not part of company's order book'

Larsen & Toubro

• L&T clarified Kuwait oil tenders are not part of its order book
• L&T shares dropped 4% on reports of Kuwait's potential tender cancellations.
• L&T remains confident of exceeding FY26 order inflow guidance

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Larsen & Toubro (L&T) issued a clarification on January 13 after a report suggested that Kuwait is discussing plans to cancel oil project tenders worth $8.7 billion. The stock tumbled 4 percent following the reports.

The company clarified that the projects referred to in the media reports were not part of the company’s order book. “Further, the Company can’t comment on the status of tenders or commercial decisions of its Clients,” it added.

The shares of the company fell to a one-month low of Rs 3,846 apiece in the afternoon trading hours of Tuesday after the reports surfaced. The stock has now fallen around 8 percent after hitting a fresh 52-week high of Rs 4,195 apiece on January 5.

Kuwait mulls cancellation of oil project tenders worth $8.7 bn, says report:

Kuwait's discussions come after bids for several contracts came in well above the budget, raising concerns over cost efficiency and fiscal impact, media company MEED reported citing people familiar with the matter.

According to analysts quoted by CNBC-TV18, L&T was the lowest bidder in tenders worth more than $4.5 billion.

Moneycontrol couldn't independently verify the report.

L&T order book guidance:

Earlier in October, L&T had said that it is confident of exceeding its full year FY26 guidance of 10 percent in group order inflows.

"We have a strong order prospects pipeline of Rs 3.57 trillion for the [Energy Projects] segment in the near term, comprising of Hydrocarbon prospects of Rs 2.93 trillion, CarbonLite Solutions of Rs 0.46 trillion and the clean energy prospects of Rs 0.18 trillion. The Hydrocarbon prospects remain predominantly International with approximately 93% of the opportunities is overseas, while CarbonLite Solutions prospects are primarily domestic and clean energy is largely driven by gas to power opportunities," the company's management said.

International orders formed 49 percent of the company's order book as of September 30, 2025.

L&T share price:

L&T shares have fallen around 7 percent in the past five days, but gained nearly 10 percent in the past six months.

The stock currently has a P/E ratio of 28.87.

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