Indian engineering, procurement and construction (EPC) companies are seeing a surge in business opportunities from West Asia as governments and energy majors in the region invest in oil and gas facilities, power transmission networks, renewable energy and water infrastructure.
Industry estimates peg the addressable opportunity for Indian EPC companies in the region at around Rs 1 lakh crore this financial year. The pipeline spans new energy and infrastructure projects, upgrades to existing facilities and, potentially, reconstruction work once geopolitical tensions ease.
Saudi Arabia, the UAE, Oman and Kuwait are among the key markets driving the demand. While the conflict in the region has caused some disruption to ordering, shipping and execution, companies say the longer-term investment cycle remains intact, supported by spending on energy security, utilities and economic diversification.
Larsen & Toubro (L&T), Kalpataru Projects International (KPIL), Waaree Renewable Technologies, Waaree Energies and Thermax are among the Indian companies either securing projects or bidding for large contracts in the region.
L&T on Friday said its energy hydrocarbon onshore vertical had signed a six-year EPC framework agreement with Petroleum Development Oman. It is one of four contractors selected to participate in the oil and gas major’s upcoming front-end engineering design and EPC projects during the period.
The agreement came days after L&T secured a major order from Kuwait Oil Company for its Jurassic Light Oil export facilities and the upgrade of the existing export network.
West Asia accounted for around 20% of L&T’s international order inflows in the first quarter of FY27, and company sources expect its share to rise further once hostilities ease. Opportunities are emerging across oil and gas, power transmission and distribution, and renewable energy, they said.
“The order book in West Asia has gone up year-on-year. So, even on a lower execution pace, the absolute numbers are better because of the size of the order book,” L&T President, Whole-time Director and Chief Financial Officer R Shankar Raman said during a post-earnings interaction this week.
Although a large European contract overshadowed West Asian orders during the June quarter, Raman said the opportunity in the region remained encouraging. The company expects ordering activity to pick up from the second half of FY27.
L&T’s prospect pipeline for the remaining nine months of FY27 stands at Rs 15 trillion. Motilal Oswal said ordering in West Asia was likely to accelerate from the second quarter, even as L&T had diversified its inflow mix through Europe and the domestic private sector.
For KPIL, the opportunity is widening beyond its traditional strengths in oil and gas and power transmission. The company, which is executing a major pipeline project for Saudi Aramco, has recently secured its first water project in the region.
“Despite geopolitical uncertainties, project execution has remained largely on track across the transmission and distribution and oil and gas businesses,” said Amit Uplenchwar, director, KPIL.
The company’s oil and gas revenue grew 55% in FY26, driven by the Saudi project. Its West Asian portfolio now spans Saudi Arabia, the UAE and Kuwait, including transmission and distribution projects in the latter two markets.
Uplenchwar said government spending on energy security, utilities and long-term infrastructure provided robust business visibility across segments. KPIL would continue to evaluate opportunities in the region while maintaining a disciplined bidding approach, he added.
The regional opportunity is also drawing companies focused on the energy transition. Waaree Renewable Technologies is pursuing EPC orders totalling 11 gigawatt in markets such as the UAE and Kuwait.
“We are participating in EPC orders in West Asian countries that are not affected by geopolitical tensions. These orders are likely to come up for execution over the next one or two years,” Chief Financial Officer Manmohan Sharma told FE. Operations and maintenance contracts are expected to follow the EPC orders, he said.
Its parent, Waaree Energies, has submitted bids for contracts worth Rs 4,000-5,000 crore across Saudi Arabia, Oman, Bahrain and the UAE. Chief Financial Officer Abhishek Pareek said most opportunities were turnkey contracts because customers in West Asia typically require suppliers to undertake installation, commissioning and on-site servicing in addition to supplying equipment.
Yet, the region’s large order pipeline comes with near-term execution risks. Thermax, which secured orders from the West Asian oil and gas sector during the June quarter, could not recognise revenue on equipment worth around Rs 300 crore because customers were unable to accept delivery.
“These were mainly international customers in the Middle East,” Thermax Managing Director Ashish Bhandari said, adding that shipping delays had restricted revenue growth despite a significant backlog.
For Indian EPC companies, therefore, West Asia presents a two-speed opportunity: geopolitical tensions may slow deliveries and near-term execution, but spending on energy, utilities and infrastructure continues to expand the order pipeline. Companies with the capacity to absorb delays and execute across sectors are positioning themselves for an acceleration in awards once conditions stabilise.
(With inputs from Geeta Nair)