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Larsen & Toubro has reported that more than 95 per cent of its project sites in West Asia continue to operate normally despite escalating geopolitical tensions linked to the ongoing regional conflict. The company, which has a significant exposure to markets such as Saudi Arabia, the UAE and Qatar, indicated that only a small proportion of projects near sensitive zones have been temporarily paused. While operations remain largely stable, the company has flagged emerging risks including supply chain disruptions and rising insurance costs. West Asia continues to account for a substantial share of L&T's international order book, underlining the region's importance to its overall business operations.
Larsen & Toubro has indicated in the past week that its operations across West Asia remain largely stable, with over 95 per cent of its project sites functioning normally despite ongoing geopolitical tensions arising from the regional conflict involving Iran, the United States and Israel. The company's assessment reflects continued execution across key markets, even as external risks persist. Advertisement
Senior management stated that only a small proportion of projects estimated at around 5 per cent have been temporarily affected. These disruptions are largely limited to sites located near sensitive areas such as military installations and airports, where work has either been paused as a precaution or at the request of clients. The company has maintained that the majority of its operations continue without interruption, supported by ongoing coordination with local authorities and project stakeholders.
L&T operates more than 100 project sites across West Asia, including in countries such as Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Oman. The region remains a critical market for the company, contributing a significant share of its international order book and revenue pipeline. As of recent estimates, West Asia accounts for a substantial portion of L&T's global business, highlighting its strategic importance within the company's long-term growth framework.
Despite operational continuity, the company has identified emerging challenges linked to the geopolitical situation. Supply chain disruptions, particularly in shipments originating from Europe and China, have been flagged as near-term risks that could affect project timelines. In addition, rising insurance costs associated with operating in high-risk zones have added to execution complexities. These factors are being monitored closely as part of ongoing risk management efforts.
The company has also indicated that it has not initiated any evacuation of personnel from project sites, with employee safety and asset protection remaining a priority. While existing teams continue to operate on-site, management has adopted a cautious approach towards deploying additional workforce to the region amid uncertainty.
The current geopolitical situation has had a broader impact on market sentiment, with investor concerns reflected in the company's share price movements in recent weeks. However, L&T has maintained that there has been no material disruption to project execution or revenue flows at this stage, with invoicing and payments continuing as scheduled across most sites.
The developments come against the backdrop of wider disruptions in the region, including constraints on shipping routes and supply chains linked to tensions around the Strait of Hormuz. These external factors have affected multiple industries and raised concerns over logistics and project execution timelines across West Asia.
L&T's continued operations in the region indicate resilience in managing large-scale infrastructure projects under volatile conditions. With West Asia remaining a key contributor to its international portfolio, the company's ability to sustain execution amid geopolitical uncertainty is expected to remain a critical factor in its ongoing project pipeline and order inflows.
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