Engineering and infrastructure giant Larsen & Toubro (L&T) says the ongoing Middle East conflict has had limited impact on its operations, though supply chain disruptions remain a concern. The company reports that around 95% of its projects in West Asia are running smoothly, highlighting resilience despite rising geopolitical tensions in the region.
L&T derives over one-third of its revenue from the Middle East, making stability in the area a key factor for its business. While a small fraction of projects, roughly 5%, face delays, these are not significant enough to affect the company’s overall performance.
Supply chain issues are the main risk flagged by L&T. Shipping delays from international suppliers, particularly in China and Europe, have affected timely material movement. To address this, the company is maintaining on-site inventory and exploring alternative logistics routes via Oman and the Red Sea, ensuring continuity for ongoing projects.
Looking ahead, L&T sees post-war reconstruction and energy diversification as major growth opportunities. With increased infrastructure, power, and energy sector activity expected, the company is positioning itself for upcoming project awards and accelerated execution.
Executives also highlighted opportunities in alternative energy projects, including solar, green hydrogen, and carbon capture, as well as alternative pipeline routes. These initiatives are gaining importance as countries in the region seek to strengthen energy security and reduce reliance on critical chokepoints like the Strait of Hormuz.
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