Kernex Share Price Hits 5% Upper Circuit After Securing ₹311 Crore Railway Contracts

Kernex Microsystems (India) Limited made headlines on June 13, 2025, after its share price hit the 5% upper circuit on the BSE. The surge in stock price comes on the back of a major announcement, the company, as part of a joint venture, has secured railway safety system contracts worth ₹311 crore from Southern Railways.

Kernex Share Price Hits 5% Upper Circuit

Kernex Microsystems (India) Limited witnessed a sharp surge in investor interest on June 13, 2025. As of 3:09 PM, the Kernex Microsystems share price hit the 5% upper circuit on the BSE and was quoting at ₹1,301.30. This jump follows the company’s announcement of receiving significant project orders from Southern Railways.

Southern Railways Awards ₹311 Crore Contracts

Kernex Microsystems, through its joint venture with VRRC, has secured two contracts from Southern Railways for the implementation of the Kavach system, which is a train collision avoidance system designed to enhance railway safety.

The total value of the contracts is ₹311.03 crore, including GST. Kernex has a 60% share in the joint venture, indicating a substantial order inflow for the company.

Project Details and Execution Timeline

The 2 awarded projects include:

1. Kavach Implementation in MAS-GDR, MAS-AJJ, AJJ-RU Sections
   – Contract Value: ₹173.11 crore
   – Completion Period: 730 days
    
2. Kavach System with Optical Fibre Cable (OFC) Backbone in Arakkonam–Jolarpettai Section
   – Contract Value: ₹137.92 crore
   – Completion Period: 540 days

Both projects fall under the Chennai Division of Southern Railway and are domestic in nature.

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Nature and Scope of Work

The scope of work involves the installation of the Kavach system, which helps prevent train collisions and enhances railway operational safety. One of the projects also includes setting up towers and laying 48-fibre Optical Fibre Cable as a backbone communication network.

Conclusion 

These orders are strategic wins for Kernex as the Kavach system is being promoted under the Indian Railways’ safety modernisation programme. With a 60% stake in the consortium, Kernex is well positioned to benefit from the expanding need for rail safety technology across India.

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