HBL Engineering Wins ₹31.49 Crore KAVACH Order From Integral Coach Factory; Shares Rise Over 2%

Mumbai, August 3: HBL Engineering Ltd. has secured a ₹31.49 crore contract from Integral Coach Factory (ICF), Chennai, reinforcing its position as one of the key suppliers participating in India’s railway safety modernisation programme.

According to the company’s exchange filing, the order covers the supply, installation, testing and commissioning of onboard KAVACH locomotive equipment (Version 4.0). The contract is domestic in nature and is scheduled to be completed on or before March 31, 2028.

While the order value is modest compared with some of HBL Engineering’s earlier railway contracts, it adds to the company’s steadily expanding KAVACH order pipeline. The automatic train protection system has become a major focus area for Indian Railways as it accelerates deployment across the national rail network to improve operational safety and reduce the risk of collisions.

The latest contract also highlights HBL Engineering’s continued participation in one of the country’s most significant railway technology programmes, where specialised execution capabilities and long-term customer relationships play an important role.

KAVACH Rollout Continues to Drive Order Flow

KAVACH has emerged as one of the fastest-growing opportunities for railway equipment manufacturers as Indian Railways scales up implementation of indigenous train protection systems across multiple routes.

The contract awarded by ICF is for Version 4.0 of the onboard KAVACH equipment, reflecting the continued evolution of the technology and its wider adoption across locomotive fleets.

For HBL Engineering, repeated order wins in this segment strengthen revenue visibility and reinforce its credentials as an established railway signalling and safety solutions provider. Although the current contract is relatively small in value, it supports the company’s broader strategy of building a long-term order book linked to railway infrastructure upgrades.

The company clarified that the transaction is not a related-party transaction and that neither its promoters nor promoter group have any interest in the awarding entity.

Stock Market Snapshot

Investors welcomed the order announcement during morning trade.

As of 9:41 AM IST on August 3, 2026, HBL Engineering share price was trading at ₹734.25, up ₹15.55 or 2.16%.

The positive move suggests investors continue to view fresh railway orders favourably, particularly those linked to the KAVACH programme, which is expected to generate sustained demand over the coming years.

Company Background

HBL Engineering, formerly known as HBL Power Systems, manufactures a range of products for the defence, industrial and railway sectors. In recent years, the company has significantly expanded its presence in railway electronics, signalling and safety systems, with KAVACH emerging as one of its key growth drivers.

Its railway business has benefited from increasing government investment in modern signalling infrastructure and indigenous safety technologies across the Indian Railways network.

Conclusion

The ₹31.49 crore order may not materially change HBL Engineering’s overall order book on its own, but it reinforces the company’s steady participation in India’s railway safety upgrade programme.

As KAVACH deployment gathers pace nationwide, investors are likely to watch for additional order wins from Indian Railways and related entities, which could further strengthen HBL Engineering’s long-term growth visibility.

Source:

• https://www.nseindia.com/get-quote/equity/HBLENGINE/HBL-Engineering-Limited
• https://nsearchives.nseindia.com/corporate/HBLPOWER_03082026091920_KavachorderAugust2026.pdf