L&T says no major disruption to L&T’s Middle East business, order pipeline intact

Subramanian Sarma
| Photo Credit:
cueapi

Engineering major Larsen & Toubro’s (L&T) operations in West Asia remain largely unaffected by ongoing geopolitical tensions, with about 95 per cent of its project sites functioning normally, Deputy Managing Director & President Subramanian Sarma told reporters.

Only around 5 per cent of its sites — primarily those located close to sensitive zones — have seen temporary suspension, either as a precautionary measure or on customer advice. No major projects have been impacted and there have been no attacks on its sites, with all personnel and assets reported safe.

He, however, did not quantify the expected loss to revenues from the disrupted sites.

L&T group, which has operated in the region for over three decades, has around 100 sites in the region.

“It is business as usual for 95 per cent of the sites,” said Sarma, adding, “we are constantly in dialogue and calibrating and assessing the developments. And, on a daily basis, we are in touch to see what course correction, if required, can be taken. At this point in time we haven’t reached a state where we have to make any calls.”

Roughly half of L&T’s orderbook of ₹7.33 lakh crore is from international projects, of which 75 per cent is from West Asia. Its stock has fallen 19.5 per cent since the start of the war.

Cautious approach

Sarma said L&T has adopted a cautious approach on workforce deployment, avoiding fresh mobilisation while retaining existing staff on site. “Business is largely as usual,”  adding that safety of employees was the top priority followed by safety of the assets.

On the financial front, Sarma said collections and invoicing have not been impacted, with payments from clients continuing on schedule. Any potential impact on revenues, if supply disruptions persist, was likely to be temporary and in the nature of deferment rather than loss.

He  said bidding activity and project awards in the region have not slowed due to the conflict. L&T was also continuing to actively pursue new opportunities and expects some orders to materialise in the coming months.

The key near-term challenge was disruption in global supply chains, particularly shipments from China and Europe, due to logistics constraints, said Sarma.

However, intra-Gulf supplies were largely unaffected. He said the company typically maintained inventory buffers of three to four months and was exploring alternative routing via ports in Oman and the Red Sea to mitigate risks.

Published on March 22, 2026