Shares of Larsen & Toubro Limited climbed to a day high of Rs 4,214.90 on the NSE on Monday, 15 June, rising sharply after the United States and Iran announced a peace deal ending a four-month war in the West Asia region.

The reason this matters so much for L&T is straightforward. The company earns a significant chunk of its revenue from the Middle East. 

In the first nine months of FY26, around 37% of L&T’s order book and 33% of its order inflows came from West Asia.

With the conflict now winding down, that business pipeline looks far less uncertain. he two countries are set to formally sign the agreement in Switzerland on Friday, 19 June, after which the Strait of Hormuz will reopen for shipments.

Monday’s rally is the second straight day of gains for the infrastructure giant on the back of this development. The stock had already risen 5% last Friday as peace deal hopes grew over the weekend.

The journey to this point was rough. When the war broke out on 28 February, L&T shares fell 23% to hit a 52-week low of Rs 3,288.10 on 23 March. The stock climbed back above Rs 4,000 on 8 April, the day the US and Iran first announced a ceasefire.

On the business outlook, L&T has held its topline growth guidance at 10% to 12% for FY27, with operating margins expected to stay at 8.3%. 

Order inflow growth is also targeted at 10% to 12% for the year, despite some expected disruptions in Q1 and Q2 due to delayed shipments caused by the conflict.

At 12:10 pm on the NSE, shares were trading at Rs 4,184.90, up 3.35% from the previous close of Rs 4,049.30.

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