Why L&T Share Price is Falling

The Indian equity markets ended higher on Monday, with the Sensex and Nifty snapping a five-day losing streak after a sharp recovery in the latter half of the session. Investor sentiment improved on reports indicating fresh trade engagement between New Delhi and Washington.

However, after Monday's volatile turnaround, markets remained under pressure on Tuesday amid expiry-related volatility.

In intraday trade, the Nifty 50 slipped around 40 points to trade near the 25,750 level, while the Sensex declined about 80 points to hover around 83,800.

Amid this broader market volatility, shares of engineering major Larsen & Toubro (L&T) fell over 3% during the session, touching a one-month low.

Here's what weighed on the stock.

# Cancellation of Oil Project

According to media reports, shares of Larsen & Toubro (L&T) fell nearly 3% on 13 January after Kuwait was reported to be discussing the cancellation of oil project tenders worth US$ 8.7 billion (bn). The stock slipped to a one-month low of Rs 3,911 during morning trade on Tuesday.

With this decline, L&T shares are now down about 7% from their recent 52-week high of Rs 4,195, touched on 5 January.

The discussions in Kuwait reportedly follow bids for multiple contracts coming in significantly above budget, raising concerns over cost efficiency and the potential fiscal impact of the projects.

Analysts quoted by CNBC-TV18 noted that L&T was the lowest bidder in tenders valued at over US$ 4.5 bn.

Recent Developments

1) Order Win

As per a BSE exchange filing dated 13 January 2026, Larsen & Toubro's Transportation Infrastructure business vertical has secured a significant order for the construction of an arterial cable-stayed bridge over the Muri Ganga River in South 24 Parganas district, West Bengal.

The project involves building a 2+2 lane, 3.2-km extradosed cable-stayed bridge with a maximum span of 177 metres, along with approach roads of 0.9 km on the Kakdwip side and 0.65 km on the Sagar Island side.

The bridge will be equipped with advanced traffic management systems and a bridge health monitoring system, among other features. As per L&T's classification, an order value in the range of Rs 10-25 bn qualifies as a "significant" order.

2) Acquisition of JV Partner's Stake

L&T has entered into a share purchase agreement to acquire the entire shareholding of its joint venture partner, Sapura Nautical Power, in L&T Sapura Shipping (LTSSPL), a subsidiary of the company. Upon completion of the transaction, LTSSPL will become a wholly owned subsidiary of L&T.

The acquisition is expected to enhance L&T's operational flexibility and asset availability for offshore project execution, particularly in India and the Middle East.

LTSSPL operates in the offshore marine construction segment, which complements L&T's core engineering and construction businesses.

What Next?

Going forward, L&T plans to meaningfully scale up its real estate portfolio with a sharper focus on major urban markets such as Mumbai, Navi Mumbai, Chennai, Bengaluru and the NCR region.

The company is currently prioritising project launches through monetisation of owned land parcels and joint development agreements, while also exploring selective land acquisitions to expand its development pipeline.

A clearer roadmap for the real estate business, including scale and capital allocation, is expected to be outlined as part of L&T's strategic planning exercise for FY26 to FY31.

On the infrastructure and order inflow front, L&T expects the domestic prospects pipeline to remain robust, supported by sustained public sector spending and rising private capex in select segments.

While international opportunities have grown faster in recent years, the company sees domestic order momentum strengthening over the medium to long term as policy uncertainty related to elections fades and large projects move into execution.

Internationally, L&T's growth engine is expected to remain strong, led by infrastructure and hydrocarbon segments. The international infrastructure prospects pipeline stands at nearly Rs 2.93 trillion (tn), driven largely by renewables, power transmission and distribution, along with opportunities across other infra verticals.

In hydrocarbons, the nine-month order prospects pipeline is estimated at Rs 5.78 tn, with over 95% coming from international markets.

The Middle East is expected to account for around 70-80% of these opportunities, spanning both offshore and onshore projects, while offshore wind projects worth about Rs 1.31 tn add to diversification beyond the region.

How shares of L&T have performed recently

Over the past month, L&T's share price dropped over 4%.

The company touched its 52-week high of Rs 4,194.7 on 5 January 2026 and its 52-week low of Rs 2,967.7 on 7 April 2025.

About L&T

L&T is a leading Indian multinational conglomerate with a diverse presence in engineering, construction, manufacturing, technology, and services.

Founded in 1938 and headquartered in Mumbai, L&T operates in over 50 countries worldwide, serving sectors such as infrastructure, hydrocarbon, power, defence, aerospace, shipbuilding, and information technology.

The company has a strong global footprint with manufacturing facilities in eight countries and offices across more than 30 countries.

L&T has ventured into new areas, launching platforms like L&T-SunFin for industrial e-commerce and L&T EduTech for digital education in engineering.

It's a powerhouse in India's industrial and infrastructure landscape, actively transforming into a technology-driven, service-oriented conglomerate with a strong commitment to sustainability and global expansion.

To know more, check out L&T fact sheet and latest quarterly results. You can also compare L&T with its peers on our website.

L&T vs Rail Vikas Nigam

L&T vs GE Power India

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...