HBL Engineering shares rise on ₹800 crore KAVACH order win

Shares of HBL Engineering Limited rose nearly 4% on Wednesday, February 11, after the company received a Letter of Acceptance from Banaras Locomotive Works for the supply, testing and commissioning of on-board KAVACH equipment.The order, valued at ₹800.36 crore, is inclusive of 18% GST and pertains to KAVACH Version 4.0, the indigenous automatic train protection system being rolled out across the Indian Railways network.

In a regulatory filing, HBL Engineering said the contract is required to be executed within 12 months.
KAVACH is a key safety system for Indian Railways, and the latest order further strengthens HBL Engineering’s position in railway safety and signalling solutions, a segment that has seen rising traction amid increased railway capex.Also read: Explained: Why Som Distilleries shares fell nearly 12% today

HBL Engineering, formerly known as HBL Power Systems, operates across defence, railways, and industrial electronics, with KAVACH emerging as a key growth driver in recent order inflows.

For the December quarter, the company reported a more than threefold rise in net profit. On a standalone basis, the net profit stood at ₹217.69 crore in Q3FY26, compared with ₹61.48 crore in the same quarter last year. Revenue from operations rose to ₹863.65 crore from ₹454.66 crore a year ago.

Shares of the company are currently trading 3.76% up at ₹809.65. the stock has gained 17.92% in the past six months.