HBL Engineering shares rose following a ₹101.55 crore Kavach system order from IRCON. Despite weak Q4 and FY25 results, long-term returns remain strong, supported by a growing order book and focus on railway safety and defence technologies.
Shares of battery and engineering solutions provider HBL Engineering saw an uptick of up to 2.65%, reaching an intraday high of ₹579. As of 10:38 AM, the stock was trading at ₹574, marking a 1.77% gain. Meanwhile, the Nifty 50 index was down 0.31%, hovering around the 24,750 mark.
On a YTD basis, the stock price has declined by 7.87% while in the last 12 months it has jumped around 12.38%. In the longer period of 5 years, the stock has gained by 4,732%.
HBL Engineering Limited (formerly HBL Power Systems Limited) has announced that it has received a Letter of Acceptance from IRCON International Limited for the provision of Kavach, an indigenous Automatic Train Protection (ATP) system. The contract, valued at ₹101.55 Crores, inclusive of 18% GST, is to be completed within 18 months.
The scope of the contract includes the implementation of Kavach across 85 stations, covering 778 kilometres, and for 2 locomotives in the Bangalore and Mysore divisions of the South Western Railway. This significant order contributes to HBL Engineering's total accumulated order book, which now stands at ₹3,865.43 Crores.
KAVACH is an Indian Automatic Train Protection system (ATP), indigenously developed by the Research Designs & Standards Organisation. Automatic Train Protection (ATP) is a safety system used in trains to make sure they follow speed limits set by signals. It keeps checking the train’s speed while it’s moving, and if the train goes too fast or does not follow signal instructions, the system automatically applies emergency brakes to stop the train and prevent accidents.
In India, the indigenous ATP system called Kavach acts like a vigilant guardian for train drivers, stepping in if a driver fails to respond during critical moments. It not only prevents accidents by applying brakes automatically but is also built to handle India’s diverse weather conditions—like fog, heavy rains, and extreme heat—ensuring trains run safely and smoothly across the country.
In the March 2025 quarter, HBL Engineering reported a decline in its financial performance compared to the same period last year. Revenue from operations dropped by 22.05% YoY to ₹475.58 crore from ₹610.09 crore in March 2024. Profit after tax also saw a contraction of 20.17%, falling to ₹52.32 crore from ₹65.54 crore during the same quarter.
On an annual basis, the company posted a revenue of ₹1,967.20 crore for FY25, reflecting an 11.92% decrease from ₹2,233.36 crore in FY24. Despite the revenue dip, profit after tax remained almost flat, with a marginal decline of 0.03% to ₹262.57 crore compared to ₹262.66 crore in the previous financial year.
HBL Engineering Limited, formerly known as HBL Power Systems Limited, specialises in the design, development, and manufacturing of batteries and electronic products. The company has a diverse product portfolio catering to various sectors, including defence, industrial, and railway applications. Its offerings range from lead-acid and nickel-cadmium batteries to railway signalling equipment, train management systems, and specialised defence electronics. The company is actively involved in advanced technologies like the Kavach system, demonstrating its commitment to contributing to India's railway safety infrastructure.
Disclaimer: The article is for informational purposes only and not investment advice.
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