HBL Engineering shares jump 5% after bagging Rs 133 cr railway contract for Kavach safety system

Shares of Hyderabad-based HBL Engineering, formerly known as HBL Power Systems, surged 5% to Rs 619 on the BSE in Monday's trade after the company secured a contract worth Rs 132.95 crore from South Central Railway for the deployment of the indigenous Kavach safety system.

The project involves the implementation of Kavach across the Vijayawada–Ballarshah section, covering 446 kilometres, 48 stations, and 10 locomotives. It is expected to be completed within 18 months, the company said in a stock exchange filing.

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Kavach is an automatic train protection system developed in India to minimise the risk of signal passing at danger (SPAD) and collisions. It is part of Indian Railways’ broader initiative to boost safety through homegrown technology.

In a separate development, HBL Engineering also received a letter of acceptance from South Central Railway to upgrade Kavach from Version 3.2 to Version 4.0 along the Mudkhed (including)–Manmad (excluding) section. The Rs 30.67 crore contract, including GST, spans 350 kilometres and is scheduled to be executed within 24 months.

With these recent wins, the company’s total order book now stands at Rs 4,029.05 crore.

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Q4 results

For Q4 FY25, HBL Engineering reported a 20% year-on-year decline in net profit to Rs 52.32 crore, compared to Rs 65.53 crore in the same quarter last year.

Revenue from operations fell 22% YoY to Rs 475.57 crore, down from Rs 610.08 crore in Q4 FY24.

The steepest decline came from the electronics segment, where revenue dropped 65.5% to Rs 57.96 crore, from Rs 168.08 crore last year.

The industrial batteries segment remained the top revenue contributor, generating Rs 355.59 crore, compared to Rs 364.98 crore in the year-ago period.

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Revenue from the defence and aviation batteries segment declined 26.9% to Rs 46.13 crore, versus Rs 63.08 crore in Q4 FY24.

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