Kernex Microsystems (India) Ltd has announced a major contract win, securing an order worth Rs. 91.12 crores from Banaras Locomotive Works (BLW), Varanasi. The order encompasses the supply, installation, testing and commissioning of 112 sets of On-board KAVACH Loco Equipment, marking a significant business development for the technology company.

Order Details and Specifications

The contract has been awarded for equipment complying with RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or latest. The comprehensive scope includes not just supply but also installation, testing and commissioning services for the KAVACH locomotive equipment.

Contract Terms and Timeline

The order is scheduled for completion by February 15, 2027, providing the company with a clear execution timeline for this substantial project. The domestic nature of the contract reinforces Kernex Microsystems' position in the Indian railway technology sector.

Corporate Governance and Compliance

In compliance with SEBI regulations, the company has confirmed that there are no related party transactions involved in this contract. Additionally, the promoter, promoter group, or group companies have no interest in Banaras Locomotive Works, ensuring arm's length transaction principles.

Company Background

Kernex Microsystems (India) Ltd is an ISO 9001:2015 certified company headquartered at Technopolis, Hardware Technology Park in Hyderabad, Telangana. The company operates in the technology sector with a focus on railway equipment and systems, as evidenced by this latest KAVACH equipment contract.

This order win represents a significant addition to the company's order book and demonstrates its capabilities in the railway safety and signaling equipment domain. The KAVACH system is part of India's railway safety infrastructure, making this contract strategically important for both the company and the broader railway modernization efforts.

Kernex Microsystems (India) Limited has announced a strategic joint venture agreement with Bharat Heavy Engineering Private Limited, marking a significant step in railway signalling technology development. The partnership was disclosed through a regulatory filing dated 7th March 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Joint Venture Structure and Shareholding

The proposed joint venture establishes a strategic partnership with clearly defined ownership structure and operational framework.

Railway Signalling Technology Development Focus

The joint venture aims to develop sophisticated railway signalling and control systems that represent cutting-edge technology in the Indian railway sector. The primary objective centers on creating Moving Block System integrated with Automatic Train Supervision (ATS) and Automatic Train Operation (ATO) on the Kavach platform, complemented by Centralized Traffic Control (CTC) systems.

These signalling technologies are crucial for modern railway operations, enhancing safety protocols and operational efficiency. The Kavach platform represents India's indigenous train collision avoidance system, making this partnership strategically important for the country's railway modernization efforts.

Regulatory Compliance and Governance

The agreement maintains arm's length transaction principles with no related party implications. Key governance aspects include:

• No special rights granted to either party
• No impact on management or control of Kernex Microsystems
• No restrictions or liabilities imposed on the listed entity
• No nominee director appointment from Bharat Heavy Engineering
• No relationship with promoter or promoter group entities

Strategic Implications

This joint venture positions Kernex Microsystems to leverage combined expertise in developing advanced railway signalling technology solutions. The partnership allows both companies to pool their technical capabilities and resources for complex railway system development projects.

The flexible shareholding structure, which can be adjusted based on project scope, demonstrates the pragmatic approach adopted by both partners to ensure optimal resource allocation and project execution efficiency.