Indian firms with Gulf projects at risk

The escalating US - Iran conflict has wreaked havoc on market sentiment, leaving investors anxious about spiking crude oil prices and the economic fallout of a prolonged confrontation.

- Mayur Bhalerao & Niti Kiran

This instability carries significant implications for Gulf Cooperation Council (GCC) economies, particularly with the threat of supply disruptions through the Strait of Hormuz, a vital choke point for global energy.

Consequently, Indian firms with meaningful exposure to the Middle East are facing heightened near-term volatility. The impact is particularly acute for the engineering, procurement and construction (EPC) sector, alongside oil & gas services, power transmission, and infrastructure. According to a PL Capital note, the extent of the damage will depend on project concentration, contract terms, receivable cycles, and the potential for a slowdown in fresh order inflows.