Kernex Microsystems (India) Ltd announced on Wednesday (February 11) that Banaras Locomotive Works (BLW), Varanasi, has awarded the company an order valued at ₹411.17 crore, including GST. According to a stock exchange filing, the contract involves the supply, installation, testing and commissioning of 505 on-board Kavach loco equipment units as per RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or the latest. This critical order requires Kernex to deliver equipment that passes rigorous railway safety approvals before installation on locomotives.
The execution period for the contract is 12 months from the date of the purchase order, with the total consideration standing at ₹411.17 crore, inclusive of GST. As reported by CNBC TV18, the order has been awarded by a domestic entity and is domestic in nature. The contract covers the supply of on-board Kavach loco equipment units for railway safety systems, with the company responsible for delivering hardware that meets stringent railway safety standards.
Shares of Kernex Microsystems (India) Limited ended at ₹1,233.15, up by ₹36.55, or 3.05%, on the BSE following the contract announcement. According to CNBC TV18, this positive market response reflects investor confidence in the company's ability to secure significant railway infrastructure contracts. The stock gained over 3% on the latest contract win, demonstrating strong investor interest in the company's railway safety technology capabilities.
This latest contract adds to Kernex Microsystems' growing railway portfolio, following a ₹21.03 crore order from South Central Railways, Secunderabad, last year. The Kavach safety system automatically applies brakes when train drivers miss red signals or when two trains approach dangerously close on the same track. After recent rail mishaps, safety has become a top priority for Indian Railways, with the government pushing large-scale deployment of KAVACH across thousands of kilometres. Together with a much bigger ₹2,466 crore order from Chittaranjan Locomotive Works for 3,024 KAVACH units, these wins significantly strengthen Kernex's order book and position the company as a key player in India's railway safety modernization drive.
