HBL Engineering drops 13% after it misses major order from Indian Railways

HBL Engineering share price today: HBL Engineering share price slumped over 13 per cent to the lowest level in nearly one month after it missed a major order from the Indian Railways. 

 

HBL Engineering share price slumped 13.73 per cent to ₹757.70, the lowest level since December 18, 2025. The stock resumed its declining streak in Friday’s session after a one-day break in the previous session. 

 

The stock has been trading under pressure since January 8. In the last 12 months, however, HBL Engineering's share price has risen 44.05 per cent, compared to 10.87 per cent advance in the NSE Nifty 50 index. 

 

 

As of 10:33 AM, HBL Engineering share price was trading 9 per cent down at ₹799.25, as against 0.72 percent advance in the Nifty 50 index.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why did HBL Engineering share price fall today?

HBL Engineering's share price slumped in Friday’s session as the company clarified it has not receive any order in the tender process for CLW loco Kavach. The tender was for 6,300 loco units. 

 

HBL Engineering also said the total orders are reduced to 12,129 loco units in the ongoing financial year, compared to the earlier estimate of 18,429 loco units. 

 

The company estimates total sales for the Kavach business in the financial year 2026(FY26) at around ₹1,880 crore. 

 

Overall, HBL Engineering has ₹900-crore orders in hand, which are scheduled to be invoiced in the next financial year. For the financial year 2027 (FY27), the company expects sales for the Kavach business to be at ₹1,000 crore for loco units and ₹900 crore for stations.

 

Kavach is a key product for HBL Engineering as it contributes a majority portion of the order book and profits, according to the annual report for the financial year 2025 (FY25).

 

Kavach, along with charger and train electronics, contributed 28.96 per cent of HBL Engineering's total turnover in FY25, the company said in its annual report. 

 

Kavach is an indigenous train collision avoidance system (TCAS). In September 2024, HBL Engineering became the first Kavach original equipment maker to demonstrate the functioning of the Kavach system with this new specification in the West Central Railway from Kota to Sawai Madhopur. After this, orders for Kavach systems started from the next month, according to the annual report.   ALSO READ | Here's why Reliance Power share price declined 8% on bourses on Jan 16

Analyst view:

 

Technically, HBL Engineering is trading around the 'neckline' support of ₹755 levels of the 'head and shoulder' formation that also coincides with its 200-day double exponential moving average (DEMA), placed at ₹772 levels, said Vipin Kumar, assistant vice president, technical and derivatives research at Globe Capital Markets.

 

A decisive close below the ₹755 levels will be a negative development that might take the stock down towards ₹700 levels in the near-term. The possibility of some recovery cannot be ruled out as long as it is trading above ₹755 levels on a closing basis, he added.  Anand Rathi Share and Stock Brokers's Senior Manager of Equity Technical Research Jigar S. Patel suggested a wait-and-watch approach. HBL Engineering's current price trading below the 9-period exponential moving average (EMA), indicating weakening short-term momentum. Although DMI remains positive, the setup appears slightly overbought, suggesting limited upside in the near term.   Traders holding long positions may consider profit booking in the ₹800–840 range. A fresh directional move is likely only after a decisive breakout above resistance or a confirmed bounce from support, Patel added. 

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