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What is the story about?
Shares of HBL Engineering Ltd. declined as much as 14% on Friday, January 16, after the company disclosed that it failed to secure a large Kavach tender for locomotive safety systems, weighing on investor sentiment.
HBL did not win any orders in the recently decided Chittaranjan Locomotive Works (CLW) Kavach tender for 6,300 locomotive units, as rival bidders quoted more competitive prices, it said in a regulatory filing.
The loss of this order has been a key trigger for the sharp negative reaction in the stock.
The company clarified that its earlier intimation to the exchanges on December 18, 2025, pertained only to the Kavach locomotive business and did not include the Kavach station segment.
HBL said the total Kavach locomotive demand that was already visible for the current year stood at 18,429 units earlier, but has now reduced to 12,129 units following the outcome of the CLW tender.
From this remaining demand, the company expects to secure locomotive-related Kavach business worth at least ₹1,000 crore during FY27, with some spillover into FY28.
On the Kavach station business, HBL said it has orders in hand, of which ₹900 crore is expected to be invoiced during FY27, with an additional ₹400 crore likely to be billed in FY28.
The company added that more station-related Kavach tenders are expected during FY27, some of which could be executed within the same financial year.
Overall, HBL estimates its Kavach-related sales in FY27 at a minimum of ₹1,900 crore, comprising around ₹1,000 crore from locomotive units and ₹900 crore from station projects.
For FY26, the company expects total Kavach sales to be around ₹1,880 crore.
On the other hand, Kernex Microsystems said CLW has awarded an order worth ₹2,465.71 crore to the company for the supply, installation, testing and commissioning of 3,024 sets of on-board KAVACH locomotive equipment.
The order is to be executed over a period of 12 months from the date of the purchase order.
HBL did not win any orders in the recently decided Chittaranjan Locomotive Works (CLW) Kavach tender for 6,300 locomotive units, as rival bidders quoted more competitive prices, it said in a regulatory filing.
The loss of this order has been a key trigger for the sharp negative reaction in the stock.
The company clarified that its earlier intimation to the exchanges on December 18, 2025, pertained only to the Kavach locomotive business and did not include the Kavach station segment.
HBL said the total Kavach locomotive demand that was already visible for the current year stood at 18,429 units earlier, but has now reduced to 12,129 units following the outcome of the CLW tender.
From this remaining demand, the company expects to secure locomotive-related Kavach business worth at least ₹1,000 crore during FY27, with some spillover into FY28.
On the Kavach station business, HBL said it has orders in hand, of which ₹900 crore is expected to be invoiced during FY27, with an additional ₹400 crore likely to be billed in FY28.
The company added that more station-related Kavach tenders are expected during FY27, some of which could be executed within the same financial year.
Overall, HBL estimates its Kavach-related sales in FY27 at a minimum of ₹1,900 crore, comprising around ₹1,000 crore from locomotive units and ₹900 crore from station projects.
For FY26, the company expects total Kavach sales to be around ₹1,880 crore.
On the other hand, Kernex Microsystems said CLW has awarded an order worth ₹2,465.71 crore to the company for the supply, installation, testing and commissioning of 3,024 sets of on-board KAVACH locomotive equipment.
The order is to be executed over a period of 12 months from the date of the purchase order.
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