Railway Stock Kernex Microsystems Share Price Hits 10% Upper Circuit After RDSO Approval for Kavach 4.0

Summary: Kernex Microsystems share price hits 10% upper circuit, after RDSO approval for Kavach 4.0; can now begin deliveries for ₹3,346.35 crore railway safety system orders.

Indian equity benchmark indices recovered from lower levels on Tuesday, showing stock-specific momentum. As of 2:41 PM, the Nifty was down 0.26% and the Sensex declined 0.28%. Amid this mixed market trend, Kernex Microsystems (India) Ltd emerged as a standout performer.

The stock was locked in a 10% upper circuit on the NSE after a significant announcement from the company.

Approval for Kavach 4.0 Worth ₹3,346.35 Crore

Kernex Microsystems announced that the Research Designs and Standards Organisation (RDSO) has granted approval for Version 4.0 of the Kavach System on October 14, 2025.
This approval enables Kernex to commence deliveries of Kavach 4.0 against total accumulated orders — including those with consortium and joint venture partners — worth ₹3,346.35 crore (including GST), received since April 1, 2024.

What Is Kavach?

Kavach is an indigenously developed train collision avoidance system designed to enhance safety by continuously monitoring and controlling train speeds to prevent accidents.

Key highlights of Kavach include:

• Built to Safety Integrity Level 4 (SIL 4) — the highest safety certification standard.
• Development began in 2015 and was rigorously tested over three years.
• The system was first installed in the South Central Railway (SCR) network and received operational certification in 2018.
• Kavach 4.0, approved in May 2025, supports train speeds up to 160 kmph and integrates advanced communication features.
• All components are manufactured indigenously, supporting India’s self-reliance in railway technology.

Deployment Plans and Global Context

The Indian Railways plans to deploy Kavach 4.0 nationwide within six years, a remarkable timeline given that several developed nations took 20–30 years to implement comparable train protection systems.

This initiative is expected to significantly reduce human errors, enhance signalling efficiency, and improve overall safety across India’s vast railway network.

Kernex Microsystems Share Price Performance

Following the RDSO approval, Kernex Microsystems shares have gained significant investor interest as it is locked at upper circuit limit on October 14, 2025. 

• The stock has surged over 20% in the last one week.
• Over the past six months, it has delivered a robust 63% return.

About Kernex Microsystems

Kernex Microsystems (India) Ltd is a leading manufacturer of railway safety and security systems, with operations in India, Egypt, and the USA. The company’s expertise lies in developing train protection, signalling, and communication systems.

Kernex operates primarily in high-growth sectors such as railway security, telecommunications, and defence, with its core business focusing on rail safety equipment and software services.