As tension escalates across West Asia and feats of disruption in shipping through the Strait of Hormuz continues to worry the energy markets, three Indian corporate giants, Reliance Industries, Adani Group and L&T, are in the spotlight. In fact, the L&T stock is down almost 5%, while Mukesh Ambani-led Reliance Industries and the Adani group of stocks are also under significant selling pressure.
India’s economic links with the Middle East run deep. The region accounts for 17% of India’s exports, supplies 55% of its crude oil, and contributes 38% of its inward remittances, according to a March 1 report by Jefferies. Any prolonged conflict, especially one that constrains the Strait of Hormuz, therefore carries macro as well as corporate consequences.
India receives nearly 2.5–2.7 million barrels per day, roughly 50–60% of its crude imports, through this Strait, while about half of its LNG supplies also transit the route. The duration of any blockade, it noted, would be critical.
Larsen & Toubro: Heavy order book exposure to West Asia
Larsen & Toubro, India’s largest infrastructure and engineering group, has built a substantial presence across the Middle East, making the region central to its growth strategy.
Nearly Rs 3.6 lakh crore, about 49% of its consolidated order book, is tied to international projects. Of this overseas pipeline, more than 80% originates from Saudi Arabia, the UAE and other Middle Eastern markets. The company has also secured several large engineering and construction contracts in the region in recent months, further deepening its exposure. Any prolonged geopolitical instability in West Asia could slow project execution timelines, affect payment cycles or delay fresh order inflows.
The share price of L&T is down over 5% intra-day.
Reliance Industries: Logistics and margins at risk
Reliance Industries operates the world’s largest refining complex at Jamnagar in Gujarat, deeply integrated into global crude flows. While the company has diversified sourcing in recent years, including higher intake of Russian crude, its domestic-market refinery configuration continues to depend significantly on heavy and sour grades from the Persian Gulf.
Any disruption in Hormuz would complicate logistics. Gulf cargoes typically reach India within a week, whereas alternative barrels from the US or Latin America can take over a month, raising freight, insurance and working capital costs. War-risk premiums could further inflate landed crude prices.
The macro backdrop adds another layer of risk. Jefferies estimates that every $10 per barrel rise in crude can widen India’s current account deficit by about 35 basis points. If crude sustains above $80 per barrel, retail fuel price adjustments or excise duty cuts may follow, with implications for refining and marketing margins.
The RIL share price has fallen almost 2% intra-day today.
Adani Group: Haifa operations under watch
Adani Ports & Special Economic Zone, part of the Adani Group, operates Haifa Port in Israel through a consortium with Israel’s Gadot Group after winning the privatisation tender in 2022.
On Sunday, Haifa Port Company said all employees are safe and that port assets and infrastructure remain fully secure and operational despite the escalation in hostilities. The port authority said it is coordinating closely with Israel’s Ministry of Transport and Road Safety and continuing operations as per official guidance, while monitoring developments. The reassurance follows joint US-Israeli strikes on Iran and retaliatory attacks in the region, raising the risk of wider disruption to shipping and trade corridors.
While there is no reported damage to Haifa Port, prolonged instability could disrupt vessel schedules, raise insurance costs and affect cargo throughput.
The Adani Group stocks are under pressure, and the share price of Adani Enterprises slipped over 3% in early trading.
Short-term shock or prolonged disruption?
Jefferies’ base case is that any Hormuz blockade is likely to be brief, given the global energy implications. But it cautions that a prolonged conflict accompanied by sustained high energy prices would be a significant macro negative for India.