Iran-Israel-US Tension: Larsen & Toubro, Kalyan Jewellers and More in Focus Amid Escalating Tensions

On Monday, March 02, 2026, the global equity markets are likely to open on a volatile note, reacting to significant geopolitical developments over the weekend. The reported joint strikes by the United States and Israel on Iran, the death of Iran’s Supreme Leader, and Tehran’s retaliatory attacks on key Gulf nations, including Saudi Arabia have sharply escalated tensions in the region. Adding to investor anxiety are reports of the Strait of Hormuz being shut, a critical chokepoint for global oil supplies.

When it comes to India, the Middle East is not just a trade partner but a major revenue and order-book contributor for several large companies. This signals a meaningful implication for business execution, order inflows, and earnings visibility due to the heightened instability in the region

Larsen & Toubro

India’s largest infrastructure and engineering major, Larsen & Toubro has deep exposure to the Middle East. Nearly ₹3.6 lakh crore, about 49% of its consolidated order book, comes from international operations. Of this, more than 80% is concentrated in Saudi Arabia, the UAE, and other Middle Eastern markets. The company has also secured several large project wins in the region recently, underscoring its strategic reliance on Gulf economies.

Kalyan Jewellers

The jewellery retailer, Kalyan Jewellers derives around 12% of its consolidated revenue from the Middle East. As of December, it operated 36–38 stores across the region and has outlined plans for further expansion. Any prolonged disruption could affect consumer sentiment and store operations in these key Gulf markets.

KEC International

The transmission and distribution major has a strong footprint in Saudi Arabia and the UAE. It recently secured orders worth ₹1,064 crore for a 380 kV transmission line and ₹1,038 crore for a GIS substation project in Saudi Arabia. Management has also indicated that it is the lowest bidder for several additional Middle Eastern projects that may be awarded shortly, highlighting the region’s importance to its near-term growth pipeline.

Welspun Corp

While the company has not disclosed the exact proportion of its order book linked to the Middle East, Saudi Arabia remains a key geography. Welspun is investing nearly ₹1,700 crore in regional capex, including a 250,000 MTPA ductile iron pipe facility expected to be operational by March 2026. It is also setting up a 350,000 MTPA LSAW pipe plant to cater to demand from Saudi Aramco and other infrastructure projects, further deepening its regional integration.

VA Tech Wabag

The water treatment specialist, VA Tech Wabag is currently executing a 200 MLD Al Haer Sewage Treatment Plant (STP) project in Saudi Arabia and a 300 MLD Yanbu Mega Desalination Plant, with commencement expected shortly. Early engineering work has been completed and key personnel deployed. Management has emphasized that the Middle East continues to offer sustained opportunities in desalination and wastewater treatment, supported by strong infrastructure investments across GCC nations.

Conclusion

With energy flows, infrastructure spending, and regional stability all at stake, companies with significant Middle Eastern exposure may see heightened volatility in the near term. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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