Synopsis: The Rising Iran tensions hit markets, impacting Indian stocks with Middle East exposure. Companies like Larsen & Toubro Ltd, KEC International Ltd, Kalyan Jewellers & Others Ltd saw significant declines due to regional project and revenue risks.
Global equity markets reacted over the weekend to escalating war tensions, with the Sensex and Nifty opening in the red. On the morning of Saturday, February 28, Israel and the US launched attacks on Iran, prompting Iran to retaliate by striking US naval bases in Bahrain, the UAE, and Kuwait.
The initial attacks reportedly led to the death of Iran’s Supreme Leader, Ali Khamenei. In response, Iran declared that “there are no red lines now, and everything is possible” and has since carried out multiple attacks across the Middle East and in Israel. The escalation has caused airspace closures, stranded travellers, and widespread disruption to work and daily life in the region.
Several Indian companies derive a substantial portion of their revenues from the Middle East, with significant involvement in executing large-scale projects across sectors. Their strategic presence in the region not only drives topline growth but also strengthens international partnerships and enhances global market exposure. Here are some stocks that earn a lot of their business from the Middle East:
Larsen & Toubro Ltd
Larsen & Toubro Limited (L&T) is a premier Indian multinational conglomerate with over eight decades of excellence, specializing in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and services. Operating in many countries, it holds leadership positions in critical sectors including infrastructure, hydrocarbons, power, process industries, and defense.
With a market capitalization of Rs. 5,57,810.48 Crores on the Day’s Trade, the shares of Larsen & Toubro Ltd declined by 7.4 percent, reaching a low of Rs. 3960.20 compared to its previous close of Rs. 4280.55.
L&T is India’s largest infrastructure company and has substantial exposure to the Middle East, with nearly Rs. 3.6 lakh crore or 49% of its consolidated order book, coming from international projects. Of this international order book, over 80% is concentrated in Saudi Arabia, the UAE, and the broader Middle Eastern region. The company has also recently secured significant new orders in the region, including its latest contract valued at up to Rs. 10,000 crore across the Middle East and India.
KEC International Ltd
KEC International Ltd, a flagship company of the RPG Group a billion-dollar global Engineering, Procurement, and Construction (EPC) major with a dominant presence in infrastructure sectors. Headquartered in Mumbai, it is one of the world’s largest manufacturers of power transmission towers, with a footprint in many countries and manufacturing facilities in India, Dubai, Brazil, and Mexico.
With a market capitalization of Rs. 15,330.46 Crores on the Day’s Trade, the shares of KEC International Ltd declined by 11.7 percent, reaching a low of Rs. 517.90 compared to its previous close of Rs. 586.70.
The company has a significant presence in Saudi Arabia and the United Arab Emirates. Recently, it secured a Rs. 1,064 crore contract for a 380 kV transmission line and a Rs. 1,038 crore order for a GIS substation in Saudi Arabia. During the Q3 earnings call, management noted that the company has emerged as the lowest bidder for several projects in the Middle East, which are expected to be awarded in the ongoing Q4.
Kalyan Jewellers India Ltd
Kalyan Jewellers India Ltd is one of India’s largest and most trusted organised jewellery retail chains, founded by T.S. Kalyanaraman in Thrissur, Kerala. With over 30 years of experience, the company has grown from a single showroom into a multinational brand with a significant presence across India, the Middle East, and the USA.
With a market capitalization of Rs. 41,389.12 Crores on the Day’s Trade, the shares of Kalyan Jewellers India Ltd declined by 4.3 percent, reaching a low of Rs. 392.30 compared to its previous close of Rs. 409.95.
India’s one of the largest and most trusted jewellers has a presence in the Middle East, contributing 12 percent to its consolidated topline. As of December, the company operated 36–38 stores in the region and has plans to expand further.
Welspun Corp Ltd
Welspun Corp Ltd (WCL), the flagship company of Welspun Group, is a premier global manufacturer of large-diameter pipes, offering comprehensive end-to-end pipe solutions for sectors such as oil & gas, water, and infrastructure. The company is ranked among the top 3 line pipe manufacturers globally, with manufacturing facilities in India, the USA, and Saudi Arabia.
With a market capitalization of Rs. 21,446.18 Crores on the Day’s Trade, the shares of Welspun Corp Ltd declined by 6.9 percent, reaching a low of Rs. 768.15 compared to its previous close of Rs. 825.10.
The company has a strong presence in Saudi Arabia, having secured multiple orders from the region, although it has not disclosed the exact exposure of its order book to the Middle East. It is investing approximately Rs. 1,700 crore in the region, primarily toward establishing a new 2,50,000 MTPA Ductile Iron pipe facility, which is expected to be operational by March 2026. In addition, the company is setting up a 3,50,000 MTPA Longitudinal Submerged Arc Welded (LSAW) line pipe plant to support orders from Saudi Aramco and other local infrastructure projects.
Va Tech Wabag Ltd
VA Tech Wabag Ltd is a leading Indian multinational company specialising in water technology solutions, with over a century of experience in delivering comprehensive, engineering-led projects across the municipal and industrial sectors. The company operates globally, providing end-to-end services from design, engineering, and construction (EPC) to long-term operation and maintenance (O&M) of water and wastewater treatment plants.
With a market capitalization of Rs. 7,660.28 Crores on the Day’s Trade, the shares of Va Tech Wabag Ltd declined by 12.1 percent, reaching a low of Rs. 1110.00 compared to its previous close of Rs. 1262.80.
The company in its third-quarter earnings call, highlighted ongoing projects in Saudi Arabia, including the 200 MLA Al Haer STP and the 300 MLD Yanbu Mega Desalination Plant, with early works and key personnel already in place and full execution expected soon. They noted that the Middle East continues to offer strong opportunities in desalination, wastewater treatment, and reuse, driven by significant GCC infrastructure investments and a disciplined bidding strategy.
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