Shares of Larsen & Toubro fell 3.02% to ₹3,932 in early trade on Wednesday, touching an intraday low of ₹3,900 against a previous close of ₹4,054.50, as investors reacted to a disappointing set of Q4 FY26 results declared after market hours on Tuesday. Volumes of 13.83 lakh shares and a 54:46 buy-sell split suggest some dip-buying but the selling pressure remains dominant. The stock is now nearly 11% below its 52-week high of ₹4,440.
What the numbers showed
L&T reported consolidated net profit of ₹5,325.60 crore in Q4 FY26 — a 3% YoY decline — while revenue from operations rose 11% YoY to ₹82,762 crore. Analysts had expected net profit of approximately ₹5,501 crore — making the bottom line a clear miss. The consolidated order book stood at an all-time high of ₹7,40,327 crore as of March 31, 2026 — up 28% YoY — with international orders contributing 53% of revenues.
Why it missed — and why the market is worried
The Middle East war disrupted L&T’s projects in the region, causing delays in project execution, payment deferrals and rising input and logistics costs. International orders account for 52% of L&T’s record backlog — making the Iran war a direct earnings risk, not a peripheral one. L&T expects the West Asia conflict to weigh on its performance in H1 FY27, citing supply chain disruptions and rising input costs. For FY27, the company guided for 10-12% revenue growth with stable margins.
Analysts had flagged that a prolonged Strait of Hormuz blockade could disrupt raw material availability and trigger labour shortages through worker exodus from the region. Those risks are now materialising.