Middle East conflict disrupting execution
Supply chain constraints and logistics cost increases from the West Asia conflict may delay project execution and pressure margins in H1 FY27.
LARSENANDTOUBRO / bear-case history
Track the concerns that keep returning.
Larsen and Toubro · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Legacy project costs in energy segment
Cost overruns and closeout costs in legacy hydrocarbon projects have depressed energy segment margins; improvement depends on resolution.
Working capital normalization
NWC to sales ratio improved to 4.1% partly due to one-off advances; management expects normalization to ~10% in FY27, which could impact cash flows.
Revenue mix impact on margins
Shift towards lower-margin international and energy projects may continue to weigh on overall P&M margins despite stable guidance.