HBL Engineering Limited has officially announced receiving a Letter of Acceptance from Banaras Locomotive Works (BLW) for a significant contract worth ₹179.79 crores. The order encompasses supply, testing and commissioning of On-board KAVACH equipment (Ver.4.0), inclusive of 18% GST.

Contract Details

The company disclosed the contract award under Regulation 30 of SEBI Listing Regulations, providing comprehensive details about this substantial order win. The contract represents a major milestone for HBL Engineering in the railway safety technology sector.

Scope of Work

The contract covers supply, testing and commissioning of On-board KAVACH equipment version 4.0. This advanced railway safety technology forms a crucial component of India's train collision avoidance system, designed to enhance operational safety across the railway network.

Regulatory Compliance

HBL Engineering confirmed that none of the promoters have any interest in the transaction with Banaras Locomotive Works. The company also clarified that this contract does not fall under the Related Party Transaction category, ensuring complete transparency in the deal structure.

Strategic Impact

This order reinforces HBL Engineering's position as a key player in India's railway safety equipment market. The KAVACH system represents critical infrastructure advancement for Indian Railways, and this contract demonstrates the company's technical capabilities in delivering sophisticated railway safety solutions. The substantial contract value is expected to contribute significantly to the company's revenue pipeline and strengthen its market position in specialized railway technology manufacturing.

HBL Engineering Limited has executed a joint venture agreement with Cochin Shipyard Limited on March 25, 2026, marking a significant step toward developing indigenous electric mobility technology and energy storage solutions for the maritime sector. The partnership aims to capitalize on the growing adoption of sustainable maritime technologies both in India and globally.

Joint Venture Structure and Capital

The joint venture company will be incorporated under the name 'Green Maritime Propulsion Private Limited' with its registered office in Hyderabad, India. The financial structure and shareholding pattern demonstrate a strategic partnership between the two companies.

Business Scope and Operations

The joint venture will focus on developing electric mobility technology and energy storage solutions specifically for the maritime space. The scope encompasses both domestic and international markets, positioning the company to serve the growing demand for sustainable maritime propulsion systems.

The JV company will be managed by a Board of Directors consisting of five directors. HBL will be entitled to nominate three directors, including the Managing Director, while CSL will nominate two directors, including the Chairman. HBL may also nominate a Chief Executive Officer in lieu of a Managing Director for day-to-day operations.

Strategic Rationale

The collaboration is designed to leverage the complementary core strengths of both Cochin Shipyard Limited and HBL Engineering Limited. Key strategic benefits include:

• Development of indigenous capabilities for the maritime sector
• Alignment with the Government of India's Aatmanirbhar Bharat vision
• Capitalization on opportunities from growing adoption of electric and hybrid propulsion systems
• Positioning to serve emerging trends in sustainable maritime technologies

Regulatory Compliance

The joint venture agreement was executed following the Board of Directors' approval dated February 07, 2026. The disclosure has been made in compliance with Regulation 30 of the SEBI LODR Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The transaction does not fall within related party transactions, and no promoter, promoter group, or group companies have any interest in the entity being acquired. This partnership represents a strategic move to establish a strong presence in the sustainable maritime technology sector.