L&T Shares Plunge 7% Amid Middle East Tensions, Order Book at Risk

• Larsen & Toubro (L&T) shares experienced their biggest fall of the year, dropping 7% and below 4000 rupees.
• A Macquarie report highlighted that 37% of L&T's order book and 33% of 9MFY26 order inflow are linked to the Middle East.
• Geopolitical tensions in the Gulf region raise concerns about project delays, physical damage, worker safety, and margin pressure.
• The report suggests prolonged conflict could increase L&T's execution and earnings risks, leading to investor caution and sell-offs.
• Despite short-term risks, L&T has a strong long-term track record and significant domestic institutional investor confidence.