Explained — Key reasons behind L&T share price fall, and company clarification

Larsen and Toubro Ltd. (L&T) on Tuesday, January 13, afternoon issued a clarification regarding the report on Kuwait discussing the cancellation of oil project tenders.

L&T said the projects referred to in the report were not part of its order book.

Earlier in the day, it was reported that Kuwait was discussing the cancellation of oil project tenders worth $8.7 billion, as per the Middle East Economic Digest (MEED).As per the MEED report,  Kuwait is looking to rebid the tenders as the bids came in over budget for five major upstream contracts.

MEED is a media company that reports on the economic and business news of the Middle East.

As per analysts, L&T was the lowest bidder in tenders worth over $4.5 billion. Its current consolidated order book is at ₹6.5 lakh crore.

L&T's order inflow guidance for the financial year 2026 was 10% higher than the previous fiscal.

CNBC-TV18 had reached out to L&T in the morning for a comment, but the response was awaited. It then issued a clarification to the exchanges in the afternoon. 

L&T wins 'significant' order

On another note, L&T on Tuesday said its transportation infrastructure business vertical won a "significant" order for an arterial cable-stayed bridge over the Muri Ganga River in South 24 Parganas district, West Bengal.

L&T classifies orders in the ₹1,000 crore to ₹2,500 crore range as "significant".

The firm's scope of work includes construction of 2+2 lane, 3.2km extradosed cable-stayed bridge with a maximum span of 177 metre, along with 0.9km approach road on Kakdwip Side nd 0.65km approach road on Sagar

Island side. The bridge will be equipped with advanced traffic management system, bridge health monitoring system, architectural bridge lighting and hybrid street lighting and essential road furniture, it said.

The bridge will provide direct, all-weather connectivity to Sagar Island, which currently depends on ferry services that are often disrupted during adverse weather conditions. It will benefit over 2 lakh residents of the island, L&T said.

It will also boost pilgrimage by ensuring safe and convenient travel for millions of devotees, from across India, to the annual Ganga Sagar Mela, the second-largest religious congregation after the Kumbh Mela, L&T said, adding that it will also help transform the socio-economic landscape of the island.

L&T shares, which declined over 4% in trade after the MEED report, witnessed recovery after the firm issued a clarification to the exchanges. L&T shares were down 3.1% at ₹3,894.2 apiece around 2.45 pm on Monday. The stock has gained 12.4% in the past year.

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