L&T Wins India's Largest Pumped Storage Project Amidst Middle East Concerns

• Larsen & Toubro (L&T) secured a "large" order (₹2,500-₹5,000 crore) for India's biggest pumped storage project, the 3,000 MW Saidongar-1 in Raigad, Maharashtra.
• The order, from Torrent Energy Storage Solutions Pvt. Ltd., involves L&T's Heavy Civil Infrastructure business designing, engineering, and executing civil and hydromechanical jobs.
• Analysts like JM Financial, Axis Capital, and UBS have cut L&T's order inflow estimates due to potential cancellations of $8.7 billion worth of orders in Kuwait, though L&T clarified these were not in its order book.
• JM Financial cut core order inflow estimates by 5-6% for FY26-28, expecting a 3% impact on FY28 core EBITDA, but still anticipates L&T to meet its 10% order inflow growth guidance for FY26.
• Axis Capital noted the Kuwait cancellations signal a scale-down in a $4.5 billion 'win-worthy' prospect, making outperformance beyond 10% consolidated inflow growth tough for FY26.

Why It Matters: L&T secured a major domestic project, but analysts remain cautious due to Middle East order cancellation risks.