Several Indian listed companies generate a portion of their revenue from Israel, bringing them into focus amid the ongoing conflict between Israel and Iran. The geopolitical tensions have heightened investor attention on these companies due to their direct business links with the region.
Beyond those with revenue exposure to Israel, a number of other sectors and businesses are also indirectly impacted by the conflict. Explore the key reasons behind this heightened sensitivity and discover the names of companies and sectors potentially affected by the unfolding situation.
Companies with Operations in Israel
The first and the most prominent company that comes up is Adani Ports. It has ownership in the Haifa Port in Israel; however, the contribution to the overall revenue from the port is relatively small.
Adani Ports and Special Economic Zone is India’s largest integrated port and logistics company. Part of the Adani Group, it operates a network of ports and terminals across the Indian coastline
The second name and a prominent Indian company is SunPharma, which holds a majority stake in Israel’s Taro Pharma. However, Sun Pharma’s stock has shown no major reaction to the news of Israel and Iran. Sun Pharma is one of India’s foremost pharmaceutical companies, specialising in a diverse range of generic and speciality medications.
Laresen & Turbo also gets some revenue contribution from Israel; however, a major chunk of revenue from the company comes from the Middle East. For FY25, 34 percent of the company’s total order inflow was from the Middle East, and instability in the region could cause delays in the projects. Larsen & Toubro Limited is a leading Indian multinational conglomerate headquartered in Mumbai, operating across engineering, construction, manufacturing, technology, and financial services.
Several other companies also derive a portion of their revenue from Israel, particularly within the IT and pharmaceutical sectors. Leading IT firms such as Tata Consultancy Services (TCS), Wipro, and Infosys have operations and clients in the region, making them sensitive to developments there. Similarly, in the pharmaceutical space, companies like Lupin and Dr. Reddy’s Laboratories maintain business ties with Israel, contributing to their international revenue streams.
Rising tensions between Israel and Iran have prompted the U.S. to withdraw non-essential staff from several Middle Eastern embassies, including in Baghdad, Bahrain, and Kuwait.
This follows an explosion at Iran’s Natanz nuclear facility after Israeli airstrikes, which led Iran to vow retaliation and retaliate against Israel. There are growing fears of a broader regional conflict posing risks to global oil markets, particularly due to Iraq’s significance as OPEC’s second-largest oil producer.
Several industries remain in focus due to their reliance on crude oil derivatives. The paint sector, with companies like Asian Paints and Berger Paints, is impacted as inputs like titanium dioxide and monomers account for 30–40 percent of costs.
In aviation, firms such as IndiGo and SpiceJet face margin pressure from rising aviation turbine fuel (ATF) prices. Tyre manufacturers like MRF and Apollo Tyres are affected by crude-based inputs like synthetic rubber and carbon black. Similarly, the lubricant industry, including Castrol India and Gulf Oil Lubricants relies on base oils and additives, making it sensitive to crude price fluctuations.
Written By Abhishek Das
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