LT

June 4 (Reuters) - India's Larsen and Toubro LART.NS signed a pact with the southern factory hub of Tamil Nadu to invest 186 billion rupees ($1.94 billion) in projects that include electronics manufacturing and a data centre, the state government said on Thursday.

Here are some details of the memorandum of understanding:

• This is the first investment pact in the industrial sector signed by actor-turned-politician Joseph Vijay's government since he became chief minister last month.

• The largest investment share, worth 150 billion rupees, will go towards a data centre expansion project in Kancheepuram district, which the state said would create 500 jobs.

• L&T will also invest 25 billion rupees in an electronics manufacturing project in Coimbatore, expected to create 2,000 jobs.

• The company will invest the rest to expand its Kattupalli shipbuilding yard to create 5,700 jobs, the state said.

• L&T did not immediately respond to a Reuters request for comment.

($1 = 95.7650 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Harikrishnan Nair)

(([email protected]; +91 867-525-3569;))

By Aftab Ahmed and Saurabh Sharma

NEW DELHI, June 3 (Reuters) - India is likely to order more than $2 billion worth of military drones from domestic firms this year in its biggest such purchase, an industry body working with the government told Reuters, as global and regional conflicts boost demand.

The plans are in advanced stages with deliveries expected over 18 to 24 months, for a jump in value from recent government orders worth 30 billion rupees ($313 million) for tactical-class drones, said Smit Shah, president of the body.

"In the next phase, tactical drone procurements in India may exceed 200 billion rupees, or more than $2 billion," said Shah, whose Drone Federation India represents more than 550 companies and works closely with the government.

Shah said the new orders may follow a fast-track procurement route designed to meet urgent operational needs, with deliveries probably needed within 24 months.

The defence ministry did not immediately respond to requests for comment on the likely purchase order, which Reuters is the first to report.

OFFENSIVE POTENTIAL OF LOW-COST DRONES IN SPOTLIGHT

India's push follows clashes with arch-rival Pakistan in May last year, when both sides deployed unmanned aerial vehicles at scale for the first time, highlighting the offensive potential of low-cost drones.

The conflicts in Ukraine and Iran have further sped adoption globally, driving down costs and reshaping battlefield tactics.

In March, the defence ministry approved a proposal worth about 2.38 trillion rupees ($24.85 billion) to buy transport aircraft, missiles system and "remotely piloted strike aircraft", or armed drones, without giving a spending breakdown.

"Drones are force multipliers on the modern battlefield," said Ramesh Chandra Padhi, an executive at IG Defence, a builder of advanced unmanned aerial and short-range missile systems.

"The Indian army is following emergency or fast-track procurement to expedite the induction of drones on a very large scale," the former senior army officer added.

DRONE INDUSTRY EXPLODES IN INDIA

India has more than 600 firms making drones and components, with more than 100 focused on defence applications.

The companies range from large players such as Adani Group, Larsen & Toubro and Tata Advanced Systems to startups like ideaForge, Newspace Research and Asteria Aerospace.

They work on building reconnaissance, logistics, loitering munition, precision-strike and critical component systems.

In recent years, India has overhauled a typically slow defence procurement process to allow faster acquisition of drones, particularly after clashes with Pakistan exposed gaps in surveillance and strike capabilities, Reuters has reported.

New Delhi has started relying on emergency procurement powers and swifter efforts under the Defence Acquisition Procedure, compressing timelines to months instead of years.

At the same time, in its push to boost domestic manufacturing, it is giving priority to systems made at home.

The government has also expanded schemes such as Innovations for Defence Excellence (iDEX) to fund prototypes and enable smaller firms to win initial orders and help scale up production quicker.

At the same time, the defence ministry has opened more areas of procurement to startups and private firms, eased testing norms and pushed the armed forces to add systems through repeat and interim orders that let companies refine products rapidly.

The changes are reshaping India's drone industry, long dominated by small players, as better order visibility and policy support unlock funding and partnerships, DFI's Shah said.

Venture investment and tie-ups with larger defence firms have picked up, with companies ramping up manufacturing and research to fill rising military demand, he added.

($1=95.7750 rupees)

(Reporting by Aftab Ahmed and Saurabh Sharma; Editing by Clarence Fernandez)

(([email protected]; +91 99109 33884;))

Adds details, background

NEW DELHI, May 27 (Reuters) - India has sought initial proposals to locally manufacture a fifth generation combat aircraft from three short-listed bidders, news agency ANI reported on Wednesday, citing defence officials.

Here are some details:

• The bidders are Tata Advanced Systems, and joint ventures between Larsen and Toubro LART.NS-Bharat Electronics BAJE.NS, and Bharat Forge BFRG.NS-BEML BEML.NS – all of them Indian companies.

• India approved a programme to build the stealth fighter jets and invited interest for the same from defence firms last year, weeks after a fierce military conflict with nuclear-armed foe Pakistan.

• The programme is critical to boost the strength of the Indian Air Force, whose fleet of mostly Russian aircraft has shrunk to below 30 squadrons in recent months, compared to the approved strength of 42.

• The push aligns with Prime Minister Narendra Modi's larger ambition to ramp-up local manufacturing and boost its military might to take on threats from both Pakistan and China.

• Washington has pitched its advanced F-35 jet to India and Russia has countered that by offering its own fifth-generation Su-57. India has maintained a distance from both offers.

• New Delhi has long relied on importing machinery and weapons for its armed forces, but a recent push by Modi has helped boost domestic manufacturing.

• India's defence production hit a record high of 1.54 trillion rupees ($16.09 billion) in the financial year ended March 2025.

($1 = 95.6900 Indian rupees)

(Reporting by Hritam Mukherjee; Editing by YP Rajesh)

(([email protected]; @MukherjeeHritam;))

May 26 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN TOUBRO GOT ORDER WORTH BETWEEN 10-25 BILLION RUPEES

• LARSEN AND TOUBRO - GEOSTRUCTURE SECURES MULTIPLE ORDERS IN INDIA

Source text: ID:nBSE23c5hd

Further company coverage: LART.NS

(([email protected];))

May 22 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LTM OFFERS TO ACQUIRE RANDSTAD’S TECHNOLOGY AND CONSULTING SERVICES BUSINESS IN EUROPE AND AUSTRALIA

• PROPOSED TRANSACTION VALUES OPERATIONS TO BE ACQUIRED AT AN ENTERPRISE VALUE OF EUR 160 MILLION ON A CASH AND DEBT-FREE BASIS

Source for text: Here

Further company coverage: LART.NS

(Gdansk Newsroom)

(([email protected]; +48 587 785 110;))

May 14 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - PARTNERS FRANCE-BASED EXAIL FOR INDIAN NAVY'S UNMANNED MINE COUNTER MEASURE SUITE

• LARSEN AND TOUBRO - ENTERS STRATEGIC COLLABORATION WITH EXAIL FOR INDIAN NAVY MINE COUNTER-MEASURE SUITE

Source text: ID:nBSEbGQ3hd

Further company coverage: LART.NS

(([email protected];;))

May 13 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - WINS SIGNIFICANT ORDERS FOR POWER TRANSMISSION DISTRIBUTION BUSINESS

• LARSEN AND TOUBRO - SIGNIFICANT ORDER CLASSIFICATION VALUE IS 10 BILLION RUPEES TO 25 BILLION RUPEES

Source text: ID:nBSE2YhFLR

Further company coverage: LART.NS

(([email protected];))

May 8 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - SECURES SIGNIFICANT EPC ORDER FROM BCGCL FOR COAL-TO-AMMONIUM-NITRATE PROJECT IN ODISHA

• LARSEN AND TOUBRO - SIGNIFICANT ORDER INDICATES VALUE BETWEEN 10 BILLION RUPEES AND 25 BILLION RUPEES

Source text: ID:nNSE3dCQtF

Further company coverage: LART.NS

(([email protected];))

May 7 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - CO'S BUILDINGS FACTORIES BUSINESS WINS MULTIPLE ORDERS ACROSS THREE INDIAN STATES

• LARSEN AND TOUBRO - ORDER CLASSIFIED AS LARGE, VALUED AT 25 BILLION RUPEES TO 50 BILLION RUPEES

Source text: ID:nBSE73scTd

Further company coverage: LART.NS

(([email protected];))

Adds analyst comment in paragraph 6,8

May 6 (Reuters) - Shares of India's Larsen & Toubro LART.NS slid to a more than three-week low on Wednesday after the conglomerate posted a 3.1% drop in quarterly profit a day earlier and warned that the ongoing Middle East conflict would slow revenue growth this fiscal year.

Shares of L&T, seen as a barometer of India's infrastructure sector, fell as much as 3.8% to 3,900 rupees in early trade, after the company flagged on Tuesday that pressures from the Middle East conflict would build over the next two quarters.

The Middle East accounted for about 40% of L&T's $77.82 billion order backlog in the quarter ending March 31.

The stock has shed about 8.2% since the Iran war began on February 28, compared with a 4.2% drop in the broader Nifty 50 index .NSEI.

On Tuesday, the firm said it expects revenue to grow at a slightly slower pace of 10-12% for the current fiscal year.

Emkay Research cut its rating on the stock to "Add" from "Buy" and lowered the price target to 4,450 rupees from 4,800 rupees.

The brokerage said that despite strong order inflows and a robust backlog, L&T's results were impacted by weaker execution and margin pressures.

The firm said it aims to keep margins broadly stable at around the reported 8.3% for fiscal 2027 and expects an order book growth of 10-12%.

"Challenging geopolitical conditions may slow market share gains and new market expansion. While strong execution supports a long-term outlook, near-term growth and margin risks persist," analysts at HSBC Global Investment Research said.

($1 = 95.0912 Indian rupees)

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)

(([email protected]; Ph no. +91 9590227221;))

** Shares of India's Larsen & Toubro LART.NS fall 1.68% to 4032.10 rupees

** Infrastructure major to report fourth quarter earnings on the day

** Stock has been sensitive to Middle East developments, with the region contributing ~35% of revenue and recent tensions raising concerns over project delays and execution

** Analysts at Goldman Sachs flagged near-term execution risks from potential project delays in the Middle East, while brokerage Citi said the company's strong domestic business should help cushion any impact -note

** In Q3, co's profit fell 4.3% y/y, dragged by slower order inflows and a one-time labour charge of 11.9 billion rupees ($124.78 million)

** LART rated "buy" on average by 29 analysts, median PT at 4554 rupees -- data compiled by LSEG

** Stock down 5.7% since the Iran war began on February 28

($1 = 95.3675 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

Updates with banker comment in paragraph 7; recasts throughout

By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, April 30 (Reuters) - India's Torrent Power TOPO.NS is set to launch its largest-ever corporate bond issue to fund an acquisition, marking the first such bond sale of the current financial year, three merchant bankers told Reuters on Thursday.

The power producer plans to raise as much as 40 billion rupees ($421.8 million) through the sale of longer-tenor bonds, the bankers said, adding that the company is expected to tap the market in May, with discussions likely to conclude within the next week.

Proceeds from the sale will be used to fund Torrent Power's acquisition of Nabha Power, which was approved by India's competition regulator earlier this month, the bankers said.

In February, Torrent Power said it would buy the coal-fired power plant operator from Larsen & Toubro for about 69 billion rupees, including debt, as it steps up capacity in the region.

Bond issuance to fund acquisitions gathered pace in 2025 as companies sought to diversify funding sources away from banks.

The planned bond issue is expected to feature staggered redemptions, under which principal is repaid in multiple installments rather than as a lump sum at maturity.

The company may also issue three-year bonds to attract large mutual funds and lower the weighted average cost of borrowing, one of the bankers said.

"The company has also tied up with some mutual funds, so it is highly possible that they end up splitting the quantum in shorter as well as longer tenors," one of the bankers said.

The bonds are rated AA+ by Crisil and India Ratings.

In March, Torrent Power raised 20 billion rupees through staggered redemption bonds maturing in eight years, nine years and 10 year at an annual coupon of 7.97%.

Nabha Power operates a 1,400-megawatt coal-based plant in the northern state of Punjab and supplies all of its output to the state power corporation under a 25-year contract.

The acquisition will add to Torrent Power's recent push to scale up its thermal portfolio, as utilities turn to coal-based capacity to meet India's rising electricity demand.

The bankers requested anonymity as they are not authorised to speak to the media. Torrent Power did not immediately respond to a Reuters request for comment.

($1 = 94.8400 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sumana Nandy)

(([email protected];))

April 29 (Reuters) - Larsen and Toubro Ltd LART.NS:

• DISPOSAL OF STAKE HELD BY COMPANY IN L&T METRO RAIL (HYDERABAD) LIMITED

• LARSEN AND TOUBRO - LARSEN AND TOUBRO TO SELL ENTIRE STAKE IN L&T METRO RAIL (HYDERABAD) FOR 14.61 BILLION RUPEES

Source text: ID:nBSE9rHdCV

Further company coverage: LART.NS

(([email protected];;))

April 27 (Reuters) - Larsen and Toubro Ltd LART.NS:

• L&T REALTY EXPANDS DEVELOPMENT PORTFOLIO WITH NCR LAND ACQUISITION

Source text: ID:nnAZN4SSSI5

Further company coverage: LART.NS

(([email protected];;))

The views expressed here are those of the author, the founder and CEO of Emmer Capital Partners Ltd

By Manishi Raychaudhuri

HONG KONG, April 27 (Reuters) - Asia has been the most vulnerable region in the Iran war given its heavy reliance on Middle East energy, but it could turn out to be a major winner from several long-term trends this conflict is likely to accelerate, including higher cybersecurity investment, the pivot away from fossil fuels and supply-chain diversification.

The region's energy-intensive economies - led by China, Japan, South Korea, and India — are highly dependent on Middle Eastern oil and gas. Around 80% of oil and 90% of gas that normally transit through the Strait of Hormuz are destined for Asian markets. The closure of the Strait for most vessels has thus led to sharp spikes in regional energy prices.

While China has been relatively insulated due to its massive stockpiles, the rest of the region has faced supply shortfalls, and in some countries, rationing.

Yet even though the crisis has laid bare Asia's energy vulnerabilities, it may simultaneously be accelerating several structural shifts that favour the region in the long term.

BUILDING THE ASIAN ARSENAL

The conflict is apt to accelerate the global push for more defense spending as well as Asia’s ongoing drive for greater defence self-sufficiency. The region’s world-class semiconductor and manufacturing supply chains may give Asian contractors a production edge that Western peers will struggle to match.

For example, Korean arms manufacturers – Hanwha Aerospace 012450.KS, LIG Defense & Aerospace 079550.KS, formerly LIG Nex1, and Hyundai Rotem 064350.KS - have commanded investor attention over the past year due to their strong earnings growth forecasts and large order backlogs.

Their market dominance could increase further, bolstered by growing penetration of European markets.

Both the Iran conflict and the Russia-Ukraine war have also underscored the efficacy and cost-effectiveness of "new" weaponry, especially drones. The global military drone market is expected to nearly double to $29 billion by 2030 from $15.3 billion in 2025, according to market research firm Technavio.

Technavio also forecasts similar growth for Asia's military drone market, which is led by state-backed Chinese aerospace giants. The region's manufacturers are apt to compete against U.S., Israeli, and Turkish rivals by leveraging their production scale, cost-effectiveness, and product range.

CHIPS, CYBER AND AI

Asia's cybersecurity ambitions sit at the heart of a broader global race, underpinned by rapid digital transformation, high threat exposure, government-led investment, and massive hardware manufacturing capacity supporting artificial intelligence-powered cyber defenses.

The World Economic Forum’s (WEF) January survey reveals that geopolitically motivated cyberattacks are the principal risk corporations perceive today.

Unsurprisingly, the WEF survey shows most companies view AI as the technology that will most significantly affect cybersecurity in the next 12 months.

AI already appears to be doing just that.

For example, Anthropic's Mythos - a model that is reportedly capable of identifying software vulnerabilities at scale - illustrates both the offensive potential and the defensive imperative.

The need to stay one step ahead in the AI arms race could push the U.S., Europe and others to seek to develop more of their own domestic manufacturing. Until then, the hunger for Korean and Taiwanese semiconductors looks set to remain insatiable.

THE ENERGY PIVOT

The energy shock created by the Iran war may encourage more nations to accelerate their push away from fossil fuels, expanding electric vehicles, energy storage and green energy overall.

China, with its commanding share of the EV battery market, stands to be a disproportionate winner. According to SNE Research data, Chinese manufacturers account for over 70% of global battery installations, followed by Korean companies at roughly 15%.

China also dominates intellectual property in the sector. Chinese firms held 18 of the top 20 rankings for patents in power battery systems in 2023, according to the China National Intellectual Property Administration. This means countries will likely be reliant on Chinese technological prowess as they seek to build up their low-carbon energy capabilities.

Nuclear energy is also back in focus as part of the response to the Middle East energy shock – particularly in Asia. South Korea is considering expanding its nuclear power capacity, and Taiwan is contemplating restarting two nuclear reactors. Meanwhile, Japan has signed a $40 billion reactor deal with the U.S. and a nuclear fuel recycling agreement with France.

This should create a strong tailwind for Asia’s nuclear power equipment manufacturers, with Korea’s Doosan Enerbility 034020.KS, China’s Shanghai Electric 601727.SS and Dongfang Electric 600875.SS, India’s Larsen and Toubro LART.NS and Japan’s Mitsubishi Heavy Industries 7011.T all potentially standing to benefit.

The current energy shock has also shown the danger of over-reliance on a single chokepoint. Diversification of supply routes is thus already moving from aspiration to operational necessity.

For example, there are renewed discussions about the India-Middle East-Europe Economic Corridor, a U.S.-backed rail and shipping project to link India to Europe, and Saudi Arabia is considering expanding its East-West oil pipeline, according to the Financial Times.

Several Asian companies with long experience and expertise in the Middle East – India’s Larsen and Toubro, PetroChina 601857.SS and Abu Dhabi-based NMDC NMDC.AD – could all potentially gain from this buildout.

Several hurdles remain. If the Strait of Hormuz remains closed for an extended period, it could trigger shortages of energy and industrial inputs, significantly denting Asia's manufacturing capability. Additionally, Western reshoring efforts, though gradual, could also dampen Asia's gains. Meanwhile, rising capital costs driven by inflationary expectations risk delaying both the green energy transition and defense projects.

The Middle East conflict will end at some point, but its impact on global policy direction will not.

(The views expressed here are those of Manishi Raychaudhuri, the founder and CEO of Emmer Capital Partners Ltd and the former head of Asia-Pacific Equity Research at BNP Paribas Securities.)

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(Writing by Manishi Raychaudhuri;
Editing by Marguerita Choy and Anna Szymanski)

(([email protected]))

April 24 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - ENTERS B2B INDUSTRIAL ELECTRONICS WITH MANUFACTURING IN TAMIL NADU

Source text: ID:nBSE7ZHKJw

Further company coverage: LART.NS

(([email protected];))

April 23 (Reuters) - Larsen and Toubro Ltd LART.NS:

• WINS SIGNIFICANT ORDERS FOR BUILDINGS & FACTORIES BUSINESS

• SIGNIFICANT ORDER CLASSIFICATION VALUE IS 10 BILLION RUPEES TO 25 BILLION RUPEES

Source text: ID:nNSE13nTTP

Further company coverage: LART.NS

(([email protected];;))

April 22 (Reuters) - Indian infrastructure giant Larsen and Toubro LART.NS said on Wednesday that its green energy unit has signed an agreement with Japanese trading firm ITOCHU Corp 8001.T for the long-term supply of 300,000 tonnes of green ammonia per annum.

Here are some details:

• L&T Energy GreenTech will supply green ammonia, a key fuel option to decarbonise the shipping sector, from its proposed production facility in the western Indian state of Gujarat.

• ITOCHU aims to develop a global green ammonia supply ecosystem across crucial maritime trade routes, including Singapore.

• Indian companies are increasingly winning orders to supply green ammonia to countries including South Korea and Japan.

• India aims to produce about 5 million tons of green hydrogen and its derivatives, such as green ammonia, by 2030 through state subsidies.

(Reporting by Sethuraman NR in New Delhi; Editing by Sonia Cheema)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

MUMBAI, April 20 (Reuters) - India's L&T Finance LTFL.NS is set to raise up to 5 billion rupees ($53.86 million), including a greenshoe option of 3.5 billion rupees, through the sale of bonds maturing in five years and two months, three bankers said on Monday.

It has invited coupon and commitment bids for the issue later in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on April 20:

*Size includes base plus greenshoe for some issues

($1 = 92.8375 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra)

(([email protected], [email protected]))

April 8 (Reuters) - Larsen and Toubro Ltd LART.NS:

• SECURES WORK ORDER FROM LARSEN & TOUBRO WORTH UPWARDS OF 7.5 MILLION RUPEES

Source text: ID:nBSEbxtpj0

Further company coverage: LART.NS

(([email protected];;))

March 31 (Reuters) - Larsen and Toubro Ltd LART.NS:

• COMPLETES TRANSFER OF L&T SUFIN BUSINESS TO SUFIN LIMITED

• TRANSFER VALUED AT 429 MILLION RUPEES

Source text: ID:nBSE6rqMz

Further company coverage: LART.NS

(([email protected];))

March 24 (Reuters) -

• S&P: LARSEN & TOUBRO IS LIKELY TO REMAIN RESILIENT DESPITE ESCALATING GEOPOLITICAL TENSIONS IN MIDDLE EAST

• S&P: LARSEN & TOUBRO'S DIVERSIFIED BUSINESS MODEL AND ROBUST FINANCIAL HEADROOM PROVIDE CUSHION AGAINST POTENTIAL OPERATIONAL DISRUPTIONS

• S&P: ESTIMATE MIDDLE EAST WILL LIKELY CONTRIBUTE 35% OF L&T'S CONSOLIDATED REVENUE FOR THE FISCAL YEAR ENDING MARCH 2026

• S&P: PROLONGED CONFLICT COULD EXPOSE L&T TO COST ESCALATION, GIVEN 55% OF ITS CONTRACTS ARE FIXED PRICE

Further company coverage: LART.NS

(([email protected];))

** Shares of Larsen and Toubro LART.NS rise as much as 2.6% to 3,524 rupees

** The Indian infrastructure firm says exchanges have issued a no-objection letter for the transfer of its Realty Business Undertaking to L&T Realty

** Transfer through a slump sale under a scheme of arrangement was approved by board in December 2025

** Co had said the move marks the beginning of a phased consolidation of all real estate assets and undertakings to create a unified, future-ready entity

** Analysts have a "buy" rating on avg; median PT is 4,612.50 rupees - data compiled by LSEG

** YTD, LART down ~15%

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

March 4 (Reuters) - Shares of Indian infrastructure major Larsen & Toubro LART.NS fell more than 6% on Wednesday to a one-month low as escalating tensions in the Middle East rattled markets.

The construction and engineering firm has lost about 11% over the last four sessions.

(Reporting by Brijesh Patel in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; Ph no. +91 9590227221;))

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March 3 - By Ira Dugal, Editor Financial News, with global Reuters staff

Just when things seemed to be finally going right for the $3.8 trillion Indian economy, war has broken out between Iran and U.S.-Israel and engulfed other parts of the Middle East, bringing to the fore risks to the South Asian nation's external sector that have not been fully priced in.

Can a protracted conflict prematurely end the economy's Goldilocks phase? That's our focus this week. Write to me with your views at [email protected]

To stay updated on developments, sign up for Reuters Gulf Currents newsletter and follow live coverage here.

And, technical incidents at Air India have risen. Scroll down for more on that Reuters exclusive.

THIS WEEK IN ASIA

** Khamenei killing shatters Iran's order, triggers high-stakes succession race

** How Dubai's safe-haven status is being put to the test

** Bank of Japan deputy governor says rate hikes likely to continue

**China's annual parliament meet to unveil roadmap for tech race with the West

** 'Will it give me a job?': Nepal's election promises don't stop youth exodus

PRESSURE ON OIL COSTS

With the overhang of U.S. tariffs lifted recently, the Indian economy has been chugging along at a strong pace of growth with low inflation. But the Iran versus U.S.-Israel military conflict threatens to upend it.

The risks of an extended conflict in the Middle East, analysts say, could range from higher commodity prices to lower worker remittances and disruptions to businesses that have diversified to the flourishing economies in the region.

"A prolonged conflict, alongside a large jump in energy prices, would be a major macro negative (for India)," brokerage Jefferies said in a note on Monday.

The region accounts for 17% of India's exports, provides 55% of crude oil and 38% of worker remittances, it said.

Oil prices surged 8% on Monday following the military strikes over the weekend, with Brent crude LCOc1 for a while trading above $82 a barrel.

Prices could spike to $100 per barrel, Barclays said.

Global energy markets could face one of their gravest crises in decades with the scale of disruption likely to be determined by the duration of the conflict, Reuters Open Interest columnist Ron Bousso wrote. Read that piece here.

India could be among the most vulnerable if higher oil prices are sustained, analysts said. Read here to understand why. Government officials said on Monday steps will be taken to ensure local fuel supplies.

Every $10 per barrel increase in oil prices widens India's current account deficit to GDP ratio by 0.5%, Mumbai-based brokerage Emkay Global Financial Services said. It can add up to 35 basis points to retail inflation and hit GDP growth by 15-20 basis points, the brokerage added.

Nomura economists said that an extended increase in fuel costs could prompt governments in the region to use higher subsidies and lower taxes to protect consumers from the impact.

"Higher oil prices solidify the case for central banks to stay on hold," Nomura said.

Disruption of crucial sea routes could also hurt. Roughly a third of global seaborne crude oil exports pass through the Strait of Hormuz, with most volumes destined for economies such as China, India, Japan and South Korea, Moody's Analytics said.

An added risk for India is another spurt in already-high gold prices. Together oil and gold accounted for nearly a third of India's import bill in value terms in the current financial year till January.

Indian asset markets reflected these risks in Monday's trading, with equities and the rupee sliding and bond yields rising.

WORKER REMITTANCES MAY DWINDLE

India is walking a tightrope in the conflict, boasting historical cultural ties with Iran and strong strategic relations with Israel. Prime Minister Narendra Modi held talks with Israeli Prime Minister Benjamin Netanyahu in Jerusalem last week.

Weakness in the economies of Middle East nations could also hit large remittances that India gets from workers in the region, while putting businesses at risk.

Larsen and Toubro LART.NS, India's largest engineering and construction company, has nearly 40% of its engineering, procurement and construction order book coming from the region, Jefferies said. A few consumer goods companies, such as Dabur DABU.NS and Titan TITN.NS, along with pharma firms, also have material revenues linked to the Middle East, it said.

Additionally, airlines and tourism companies could be at risk of hits to profits if oil prices remain high and travel remains disrupted.

Extended uncertainty could also weigh on the near 10 million Indian workers in the Middle East, according to government data, many of whom send earnings home, boosting household finances and acting as a major source of foreign currency inflows into India.

The widening of the conflict across the region could slow down remittances, said Emkay Global, adding, though, that this was not their base case.

MARKET MATTERS

India's economy grew at 7.8% in the October-December period and is seen expanding at 7.6% in the current financial year, according to data released by the government under a revamped GDP series.

Read here for the key takeaways and catch up on views from economists here.

The new series is expected to provide a clearer read on the economy as it widens the sources of information, shifts to a more technically sound way of computing real GDP growth and updates the base year.

THIS WEEK'S MUST-READ

Technical incidents such as engine oil and fuel leaks affecting Air India flights reached their highest rate in at least 14 months in January, Reuters' Abhijith Ganapavaram and Aditya Kalra reported.

The airline in December admitted there was a "need for urgent improvements in process discipline, communication, and compliance culture".

In January, Air India recorded 1.09 technical incidents per 1,000 flights, quadrupling from levels of just 0.26 in December 2024.

Read that exclusive report here.

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

** U.S.-Israel strikes on Iran that killed Supreme Leader Ali Khamenei and spurred a rise in crude prices could have adverse consequences on Indian sectors, brokerages say

** Brent crude LCOc1 up 6.7% at $77.8 a barrel on Monday

** Higher oil prices will likely hurt Indian oil marketing cos, paints, agro-chemicals, building materials, and tyre makers, according to Jefferies, BofA Securities and Bernstein

** Larsen & Toubro LART.NS particularly exposed, with Middle East forming ~50% of its order book and ~40% of revenue

** Building-materials players (tiles, PVC pipes) could see margin pressure due to higher gas costs

** Upstream oil cos, such as ONGC ONGC.NS and Oil India OILI.NS, to benefit from higher crude, while BPCL BPCL.NS, HPCL HPCL.NS and IOC IOC.NS face sharp profitability hit

** Agro-chemical firms at risk as India imports ammonia and sulphur via Strait of Hormuz

** Higher crude could raise India's borrowing costs, lift bond yields, and reduce PSU banks' treasury gains

** A 10% rise in crude will trim 200–250 bps from margins at Asian Paints ASPN.NS and Kansai Nerolac KANE.NS

** Indian benchmarks fall 1.3%, with broad-based sector declines on Monday .BO

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Feb 26 (Reuters) -

• LARSEN & TOUBRO BUYS 5.6 MILLION UNITS IN CAPITAL INFRA TRUST AT 69.50 RUPEES APIECE VIA BULK DEAL - NSE DATA

Further company coverage: CPII.NS

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Feb 25 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - WINS MAJOR ORDERS FOR POWER TRANSMISSION INFRASTRUCTURE

• LARSEN AND TOUBRO - ORDER RANGES BETWEEN 50 BILLION RUPEES- 100 BILLION RUPEES

Source text: ID:nBSE24Zngs

Further company coverage: LART.NS

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Feb 24 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LARSEN AND TOUBRO - WINS SIGNIFICANT ORDER FOR LIGO INDIA OBSERVATORY

• LARSEN AND TOUBRO - ORDER VALUE BETWEEN 10 BILLION RUPEES AND 25 BILLION RUPEES

Source text: ID:nBSE4zgCfX

Further company coverage: LART.NS

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Adds details from paragraph 2 onwards

Feb 23 (Reuters) - Indian IT services company LTIMindtree LTIM.NS on Monday said it has secured a $100 million, seven-year deal with a Europe-based medical technology company that provides hearing solutions.

The IT company did not reveal the name of the European firm.

Under the agreement, LTIMindtree will develop and support the client's main hearing aid brands and private-label products, including core wearable devices, and a mobile app for users.

Earlier this month, LTIMindtree's the board approved a proposal to rename the company LTM Limited, subject to shareholder and regulatory clearances.

In January, the IT firm said total order bookings for the quarter ended December 31 hit a record $1.69 billion.

(Reporting by Nishit Navin; Editing by Mrigank Dhaniwala)

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