The decline comes amid the intensifying Iran conflict following coordinated U.S.–Israeli airstrikes on Iranian military and nuclear targets. The strikes reportedly killed Supreme Leader Ali Khamenei and triggered retaliatory missile and drone attacks by Iran. Iran launched strikes on Israel and several U.S. bases located across Gulf countries. The conflict has disrupted shipping routes and energy flows across the Middle East. The turmoil has also pushed crude oil prices higher and increased regional business uncertainty.

The region is a key market for the company, accounting for 37% of its Rs 7.33 lakh crore order book and 33% of order inflows in 9MFY26.

Analysts warned that L&T could face execution disruptions in its Middle East projects, while a potential slowdown in the UAE real estate market may intensify competition.

L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services, operating across multiple geographies.

On a consolidated basis, L&T's net profit declined 4.27% year-on-year to Rs 3,215.11 crore in Q3 FY26, even as revenue from operations rose 10.48% to Rs 71,449.70 crore in Q3 FY26.