HBL Engineering bags ₹132.95 cr railway contract for Kavach safety system

In a parallel development, HBL received a ₹30.67 crore order to upgrade Kavach to Version 4.0 over 350 km in the Mudkhed-Manmad section, to be completed in 24 months

Hyderabad-based company HBL Engineering Limited, formerly known as HBL Power Systems Limited, has secured a significant contract valued at ₹132.95 crore from South Central Railway for the deployment of the indigenously developed Kavach safety system.

 

The project consists of implementation of the Kavach safety system across the Vijayawada–Ballarshah section, marking a major step forward in enhancing railway safety and accident prevention in the region.

 

The contract covers installation of Kavach over a 446-kilometre stretch, across 48 stations and 10 locomotives. The project is expected to be completed within 18 months, according to a stock exchange filing.

 

Kavach, an automatic train protection system developed in India, aims to reduce the risk of signal passing at danger (SPAD) and collisions. It is part of Indian Railways’ broader push to enhance safety through advanced technology and indigenous innovation.

 

In a parallel development, the company also received a letter of acceptance from South Central Railway for upgrading Kavach from Version 3.2 to Version 4.0 along the Mudkhed (including)–Manmad (excluding) section. The ₹30.67 crore contract, inclusive of GST, covers 350 kilometres and is to be executed within 24 months.

 

As per the latest disclosure, the company’s total accumulated order book now stands at ₹4,029.05 crore.

Q4 results

The fourth quarter net profit of the company declined 20 per cent to ₹52.32 crore in the financial year 2024–25. The company had reported a profit of ₹65.53 crore in the same quarter last year.

 

Revenue from operations stood at ₹475.57 crore in Q4 FY25, a 22 per cent decline from last year’s Q4 revenue of ₹610.08 crore.

 

In terms of segment-wise revenue, the steepest decline was recorded in the electronics segment. Revenue from electronics fell 65.51 per cent to ₹57.96 crore in Q4 FY25, compared to ₹168.08 crore in the same quarter last year.

 

The industrial batteries segment remained the highest revenue generator, posting ₹355.59 crore in Q4 FY25, against ₹364.98 crore in Q4 FY24.

 

Revenue from the defence and aviation batteries segment declined 26.85 per cent to ₹46.13 crore, compared to ₹63.08 crore in the same quarter last year.