HBL Engineering Shares Slide ~13% After Tender Miss for Kavach

HBL Engineering shares fell as much as 14% on Friday, January 16, after the company disclosed that it failed to secure a key Kavach tender for locomotive safety systems, triggering a negative reaction from investors.

In a regulatory filing, HBL said it did not win any orders in the recently concluded Chittaranjan Locomotive Works (CLW) tender for 6,300 Kavach-equipped locomotive units, as rival bidders offered more competitive pricing. The missed order was the primary factor behind the sharp decline in the stock.

Clarification on Earlier Disclosure

The company clarified that its intimation to stock exchanges on December 18, 2025, referred only to the Kavach locomotive segment and did not include the Kavach station business.

HBL said the total visible demand for Kavach locomotive systems for the current year has reduced to 12,129 units from an earlier estimate of 18,429 units following the CLW tender outcome. From the remaining opportunity, the company expects to secure locomotive-related Kavach contracts worth at least ₹1,000 crore in FY27, with some execution extending into FY28.

Strong Outlook for Station Business

On the Kavach station segment, HBL said it has a healthy order book, with around ₹900 crore expected to be invoiced during FY27 and an additional ₹400 crore likely in FY28. The company also expects more station-related Kavach tenders to be floated during FY27, some of which could be executed within the same fiscal year.

FY27 Kavach Revenue Guidance

Overall, HBL estimates its Kavach-related revenue for FY27 at a minimum of ₹1,900 crore, comprising approximately ₹1,000 crore from locomotive systems and ₹900 crore from station projects. For FY26, total Kavach sales are expected to be around ₹1,880 crore.

Also Read: Groww Share Price in Focus: State Street to Invest ₹580 Crore in Groww AMC

Kernex Microsystems Bags CLW Order

Separately, Kernex Microsystems said CLW has awarded it a ₹2,465.71 crore order for the supply, installation, testing and commissioning of 3,024 sets of on-board Kavach locomotive equipment. The order is to be executed within 12 months from the date of the purchase order.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 market are subject to market risks, read all the related documents carefully before investing.