On June 17, 2025, HBL Engineering Limited (formerly known as HBL Power Systems Limited) officially issued a clarification responding to a request from the Bombay Stock Exchange (BSE). The BSE had asked the company to provide accurate names of the entities that had awarded recent Kavach system contracts to it. These contracts, meant for enhancing railway safety infrastructure, have drawn investor attention due to their significance and scale.

HBL Engineering, listed under NSE code: HBLENGINE and BSE stock code: 517271, has been actively involved in deploying the Kavach railway safety system, which is part of Indian Railways’ indigenous safety technology designed to prevent train collisions. The company's earlier disclosures made in May and June 2025 announced receipt of Letters of Acceptance (LoAs) for these projects. However, the specific names of the awarding entities were not clearly mentioned, leading the BSE to seek a correction.

In response, HBL Engineering clarified the names of the entities for each respective announcement as follows:

• May 1, 2025: The Western Railway issued the order.

• May 27, 2025: The contract was awarded by IRCON International, a government infrastructure arm under Indian Railways.

• June 14 and June 15, 2025: Both orders were granted by the South Central Railway.

This clarification ensures compliance with regulatory norms and reaffirms HBL’s commitment to transparent and timely communication with its stakeholders. The orders, linked with the implementation of the Kavach technology, place HBL Engineering in a key role in India’s ongoing rail safety modernization plan.

The Kavach system is one of the most significant safety advancements for Indian Railways. Designed to automatically control train speeds and prevent collisions, it forms part of the government's broader initiative to enhance passenger safety. Companies entrusted with these contracts, like HBL Engineering, are vital contributors to this mission.

IRCON International, one of the awarding entities, is a government enterprise with a long-standing reputation for executing large infrastructure projects. Its involvement alongside Western Railway and South Central Railway adds institutional credibility to the contracts received by HBL. Such projects are not just about manufacturing hardware but also include design, integration, testing, and deployment—areas where HBL Engineering has deep technical expertise.

By clarifying these award details, HBL Engineering Limited aims to uphold the standards of corporate governance and address investor queries proactively. The company’s initiative to specify the names of the contract-awarding authorities helps eliminate ambiguity and ensures that investors, analysts, and stakeholders have accurate and complete information regarding ongoing projects.

Given the significance of the Kavach safety system, this clarification also holds weight for market observers tracking the railway infrastructure sector. Companies like HBL Engineering are increasingly being seen as key players in India’s rail safety transformation. Securing multiple contracts from major railway divisions signals both the technical credibility and the scale at which the company is operating.

These orders are also likely to translate into substantial revenues for the company in the coming quarters. As such, the clarification improves transparency and may contribute to better investor confidence and potentially favourable movement in the stock market.

Moreover, the clarified information aligns well with corporate disclosure norms enforced by SEBI and stock exchanges like BSE and NSE. It reflects a well-structured approach to stakeholder communication, regulatory compliance, and operational transparency.

From a broader industry perspective, these updates reinforce India’s focus on advanced safety systems in public transport. The continued rollout of Kavach technology marks a pivotal move toward achieving the government’s vision for zero-accident railways. In this context, HBL Engineering continues to be a crucial contributor to public safety infrastructure, supporting national goals through technological excellence.

The company’s role in delivering such systems is backed by a history of innovation and engineering strength. Its work with the Kavach safety system places it at the intersection of technology and national infrastructure priorities, offering growth opportunities as well as reputational capital.

In conclusion, HBL Engineering’s clarification dated June 17, 2025, is a timely and responsible disclosure that supports the broader narrative of transparency in corporate India. It also highlights the company's increasing participation in public sector technology deployments and its role in delivering mission-critical railway safety solutions. These projects, awarded by Western Railway, IRCON International, and South Central Railway, mark another milestone in HBL’s journey as a trusted partner for Indian Railways and a frontrunner in India’s transportation safety revolution.

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