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Kernex Microsystems Wins ₹209.82 Crore DFCCIL Contract for Kavach

Written by: Team Angel OneUpdated on: 29 Aug 2025, 7:24 pm IST
Kernex Microsystems has been awarded a ₹209.82 crore contract by DFCCIL to implement the Kavach Train Collision Avoidance System over a 931 km stretch.
Kernex Microsystems Wins ₹209.82 Crore DFCCIL Contract for Kavach
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Kernex Microsystems (India) Limited has obtained a significant order from the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), New Delhi. This contract, valued at ₹209.82 crore inclusive of 18% GST, covers the survey, design, supply, installation, testing, and commissioning of the Kavach system and associated towers across a 931 km double line automatic signalling section on the Eastern Dedicated Freight Corridor.

Kavach System Deployment on Eastern Dedicated Freight Corridor

The awarded project spans from New Boraki-New Khurja to New Bhaupur-New Unchdih-New Sonnagar, focusing on improving railway operational safety through the indigenously developed automatic train protection Kavach system. The scope includes the installation of signalling towers and other critical infrastructure along this extensive corridor.

The contract is earmarked for completion within 730 days from the date of the Letter of Acceptance (LoA), underlining Kernex Microsystems’ commitment to enhancing India's railway safety technology.

Read More: Power Grid Corporation Wins Karnataka Transmission Project to Boost Renewable Energy!

Significance and Financial Impact

This order adds substantially to Kernex Microsystems’ cumulative orders, which now stand at ₹3,346.35 crore (including GST) for projects starting from April 1, 2024, onwards. This reinforces the company’s strong footprint in the railway safety and signalling sector.

Kavach, as an automatic train collision prevention system developed by Indian Railways, is central to improving safety and reducing accidents, especially on dedicated freight corridors where efficiency and safety are paramount.

Project Execution and Expected Outcomes

The comprehensive project involves multiple stages from surveying and designing to installing and commissioning the system, ensuring a robust safety framework for freight operations. Once completed, this will enhance signalling security over one of the busiest and strategically important freight corridors, enhancing operational reliability in Indian Railways.

Kernex Microsystems (India) Share Price Performance

On August 29, 2025, Kernex Microsystems (India) share price opened at ₹981.00 on NSE, below the previous close of ₹994.50. During the day, it surged to ₹1,027.50 and dipped to ₹980.00. The stock is trading at ₹1,018.90 as of 1:12 PM. The stock registered a significant gain of 2.45%.

Over the past week, it has declined by 4.52%, over the past month, it has declined by 2.14%, and over the past 3 months, it has declined by 15.12%.

Conclusion

Kernex Microsystems’ ₹209.82 crore contract from DFCCIL for the Kavach system project marks a significant milestone in railway safety technology implementation. The project strengthens the company’s market position and contribution towards safer and more efficient rail freight operations in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 29, 2025, 1:53 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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