Kernex Microsystems secured ₹311.03 crore worth of Kavach system orders from Southern Railways. Its total order book as of March 2025 stands at ₹2,124.16 crore, alongside strong financial growth and multibagger returns over the past year.
On Monday, June 16, 2025, the share price of Kernex Microsystems jumped over 4% in early trade as the company received orders for the Kavach system. As of 10:53 am IST, the stock was trading at ₹1,327.80, up by 2.31%.
On a year-to-date basis, the stock is down by 2.53% while in the last 12 months, the stock has given multibagger returns of over 250%. In the last 3 months, the stock has gained over 103%. Let's have a look at the order received:
Kernex Microsystems (India) Ltd. announced on June 13, 2025, that Southern Railways, Chennai, has issued two Letters of Acceptance (LoAs) to the KERNEX-VRRC CONSORTIUM.
The first project involves the provision of Kavach (Train Collision Avoidance System) in the MAS-GDR, MAS-AJJ, and AJJ-RU sections of the Chennai Division in Southern Railway. This contract is valued at ₹173.11 Crores, including 18% GST, and has an execution period of 730 days.
The second project is for the provision of Kavach, along with a Tower and 48 Fiber OFC as a backbone network, in the Arakkonam (AJJ JN)-Jolarpettai (JTJ JN) Section of the Chennai Division, also in the Southern Railway. This second contract is valued at ₹137.92 Crores, including 18% GST, with an execution period of 540 days.
Both contracts are domestic, and the total accepted bid cost for these projects is ₹311.03 Crores, including 18% GST. Kernex Microsystems holds a 60% share in the Joint Venture.
As of March 2025, the company has a total order book of ₹2,124.16 crore
Check the latest Kernex Microsystems share price and performance history.
In the quarter ending March 2025, the company reported a sharp rise in performance. Consolidated revenue from operations jumped to ₹83.07 crore from ₹8.91 crore in March 2024, marking a year-on-year growth of 832.05%. Profit after tax turned positive at ₹32.53 crore, compared to a loss of ₹12.67 crore in the same period last year, reflecting a significant turnaround with a 356.73% improvement.
On an annual basis, the company posted strong results for FY25. Consolidated revenue from operations surged to ₹189.77 crore from ₹19.60 crore in FY24, showing an 868.33% increase. The profit after tax stood at ₹50.05 crore, reversing the previous year’s loss of ₹26.71 crore and achieving a turnaround with 287.38% growth.
Kernex Microsystems (India) Ltd. is a company operating in the railway signalling and telecommunications sector. It is involved in the design, development, and manufacture of safety-critical electronic products and systems for the railway industry, with a focus on railway signalling and train protection systems. Their offerings include the 'Kavach' (Train Collision Avoidance System), a crucial indigenous technology for enhancing railway safety.
Disclaimer: The article is for informational purposes only and not investment advice.
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