The sell-off followed the intensifying conflict involving Iran after coordinated U.S.-Israeli airstrikes on Iranian military and nuclear facilities. The strikes reportedly killed Supreme Leader Ali Khamenei and triggered retaliatory missile and drone attacks by Iran on Israel and several U.S. bases across Gulf countries. The conflict has disrupted shipping routes and energy flows in the region, pushed crude oil prices higher and increased uncertainty for businesses operating in the Middle East.

The region remains a key market for Larsen & Toubro, accounting for about 37% of its Rs 7.33 lakh crore order book and 33% of total order inflows in the first nine months of FY26.

Analysts have cautioned that prolonged tensions could disrupt project execution in the region, while a potential slowdown in the UAE real estate market may intensify competitive pressures.

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.