HBL Engineering Wins ₹148.44 Crore KAVACH Contract from Indian Railways

Shares of HBL Engineering Limited (formerly known as HBL Power Systems Limited) are in focus after the company announced that it had received a ₹148.44 crore contract from the Bhopal Division of West Central Railway for the installation of KAVACH, India's indigenous train collision avoidance system.

Contract Details

The Letter of Acceptance (LoA) was issued to the HBL-Shivakriti International consortium, with HBL Engineering as the lead member. The project includes the installation of KAVACH in key railway sections, enhancing rail safety and operational efficiency.

The awarded contract covers:

• Bina-Itarsi-Jujharpur section
• BPL-SHRN section
• Up and Down flyover track from Jujharpur to Powarkheda in the Bhopal Division of West Central Railway

The total contract value is ₹148.44 crore (including GST @ 18%), and the project is expected to be completed within 540 days.

What is KAVACH?

KAVACH is an advanced safety technology developed for the Indian Railways to prevent train collisions and enhance operational efficiency. It acts as an Automatic Train Protection (ATP) system, minimizing human errors and improving railway safety.

HBL Engineering’s Role in Railway Safety

HBL Engineering has been actively involved in railway safety and signalling projects, with a strong portfolio in:

• Railway protection systems
• Signalling and telecommunication solutions
• Battery and energy storage solutions for railways and defence

This new contract solidifies HBL’s position as a leading player in railway automation and safety technology.

Impact on HBL Engineering

The latest order adds to HBL Engineering’s growing railway infrastructure business and is expected to:

• Strengthen revenue visibility in the coming quarters.
• Enhance its position in the railway safety segment, an area of strong government focus.
• Improve operational growth, as KAVACH deployment expands across India.

The company confirmed that none of its promoters have any financial interest in the contract, and the transaction does not fall under related party transactions.

Investor Outlook

With India’s aggressive railway modernization plans, companies like HBL Engineering are expected to benefit from increased government spending on rail safety. Investors will watch for:

• Execution progress of the contract within 540 days
• Potential future orders from Indian Railways for further KAVACH installations
• Financial impact on upcoming quarterly results

The ₹148.44 crore contract win is a significant boost for HBL Engineering, reinforcing its role in India's railway safety and infrastructure development. As Indian Railways continues its modernization drive, HBL is well-positioned for future growth in this sector.

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