L&T shares jump 8%, KEC surges over 6% post Trump’s 2-week Iran ceasefire deal; here is why

This is after his threat that “a whole civilisation will die tonight” if Tehran did not comply with his demands.

On Tuesday evening, within hours of the planned attack, Trump took to his platform, Truth Social, to announce he had reversed course.

Shortly after Trump’s message, Iran’s Minister of Foreign Affairs Abbas Araghchi confirmed that a tentative agreement had been reached.

“For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces and with due consideration of technical limitations.”

Business details

Other engineering firms, such as KEC International and Kalpataru Projects International Ltd (KPIL), also have big regional exposures, as do Cummins India, Thermax, and AIA Engineering.

In a nutshell, the Middle East is a key market, accounting for a large share of order books (over one-third in the case of L&T). During the conflict, companies faced logistics issues, supply chain disruptions, and delays. A ceasefire would ease these bottlenecks, helping projects move faster and improving revenue visibility.

Besides, geopolitical instability often leads to delays in awarding new contracts. Once the situation stabilises, governments in the Gulf are likely to restart infrastructure, energy, and transmission projects—benefiting EPC players like L&T and KEC.

What L&T said recently on the Middle East crisis

The engineering, procurement, and construction major in late March 2026 said it had not seen any major business impact due to the Middle East conflict, as nearly 95% of the projects were continuing to function, a top official has said.

The company, which gets over 35% of its revenue from the geography witnessing conflict after the US and Israel's attack on Iran and the subsequent retaliations, however, flagged logistics and supply chain as key challenges and noted revenue risks if the situation remains unchanged.

“L&T does not see any immediate impact on revenues, as the 5% of projects where work has been stalled do not contribute significantly to the topline," Subramanian Sarma, its deputy managing director, told reporters over the weekend.

However, if the logistical issues do not get resolved in three months, there can be an impact on revenue deferment, he added.

The top company official, who directly oversees the energy portfolio, declined to directly answer queries on profit margins' impact but hoped that it would be able to pass on the increase in costs to the customers.

Stating that none of its sites have faced any attack and all its staff and workers in the Middle East are safe, Sarma said work at 5 of the 100 projects in the region has ceased either because the company took a decision to that effect by itself or because a customer suggested doing so due to risk factors such as proximity to a military base, and so on.