L&T Order Inflows Reach ₹1.11 Lakh Crore as Middle East Projects Revive

Larsen & Toubro has secured 13 orders since early July, with seven coming from the Middle East, pointing to renewed infrastructure activity in the region after the US-Iran war disrupted business.

While L&T discloses order values within ranges rather than providing exact figures, a Bloomberg News estimate puts the average order inflow at about ₹1.11 lakh crore in the ongoing quarter ending September 30. This is above the ₹1.08 lakh crore of orders reported in the preceding quarter.

Even at the lower end of the disclosed ranges, the new order wins are estimated to be worth ₹93,800 crore. 

L&T's Middle East order wins gain momentum

Seven of the 13 orders secured since early July have come from the Middle East. Two of the biggest projects won by L&T since then are a gas compression project and offshore facilities, with each valued at more than ₹15,000 crore.

L&T has not disclosed the names of the clients for these projects in its exchange filings.

Middle East contributes about a third of L&T's ₹2.86 lakh crore revenue for the year ended March 31. The latest order wins therefore add to the company's activity in a region that remains an important part of its business.

Why is Middle East activity picking up?

L&T had earlier indicated that tendering and bidding momentum in the Middle East remained robust despite a temporary slowdown in project awards.

“While the awarding activity in the Middle East witnessed some temporary slowdown, tendering and bidding momentum continues to remain robust, and we expect project awards to pick up from Q2,” Chief Financial Officer P Ramakrishnan told investors during an earnings call in July.

Bloomberg said resilient energy prices are supporting government budgets in Gulf Cooperation Council countries, fuelling higher infrastructure spending.

The source also said SLB expects constructive oil and gas investment in 2027, with customers increasing spending.

READ THIS: HAL, Safran Sign Aravalli Helicopter Engine Contract

L&T order inflow trend

The latest order activity has pushed estimated quarterly inflows above the preceding quarter's ₹1.08 lakh crore.

The trend is also reflected in the supplied Bloomberg chart, which shows L&T's order inflow and estimated order inflow for the quarter to date.

The company has been expanding its presence in the Middle East, and the latest wins suggest that project awards are gaining momentum following the disruption caused by the conflict. 

Conclusion: What does this mean for investors?

L&T's 13 order wins since early July, including seven from the Middle East, point to renewed project activity in the region. Estimated order inflows of about ₹1.11 lakh crore for the ongoing quarter have surpassed the ₹1.08 lakh crore reported in the preceding quarter, while the lower-end estimate for the latest wins stands at ₹93,800 crore. Investors will now track project execution, revenue conversion and margins as the company works through the new orders.