Kernex Microsystems (India) Limited has secured a Letter of Intent (LOI) from Jindal Steel Limited (JSL) for the design, supply, installation, testing, and commissioning of an advanced Yard Safety Management & Automation System. The contract, valued at Rs 15.90 Crores excluding GST, was awarded on May 28, 2026. This order marks a significant step for Kernex as it expands its safety-critical technology beyond the railway sector into large-scale industrial yards.

The project entails the deployment of a proprietary, end-to-end integrated platform known as the Torpedo & Loco Tracking System. This solution combines real-time locomotive tracking, safety interlocking systems, sensor-based field integration, and AI-enabled central command and monitoring software. The system is engineered as a ground-up industrial safety and automation architecture specifically tailored for complex industrial environments.

Management believes that no comparable integrated yard automation and safety solution currently exists in Indian industrial environments at this scale. This positions Kernex as an early mover and technology leader in this emerging segment. The project further validates the company's capabilities in mission-critical systems integration, industrial automation, software engineering, and safety-focused infrastructure deployment.

While pursuing this new opportunity, Kernex continues to remain strongly focused on its core KAVACH business. The company noted that a substantial and long-term opportunity pipeline from Indian Railways continues to evolve. The present project represents a natural extension of the engineering competencies developed through its railway safety operations, including safety-critical systems design, embedded electronics, sensor integration, real-time monitoring, and field commissioning.

The order was awarded by a domestic entity, Jindal Steel Limited. The execution timeline will be as per the Work Order to be received from JSL. The company confirmed that the promoter or promoter group has no interest in the entity awarding the order, and the transaction does not fall within related party transactions.

Order Details

Kernex Microsystems has secured an order worth ₹475.21 Crores from Chittaranjan Locomotive Works for the supply, installation, testing, and commissioning of On-board KAVACH Loco Equipment. The order, awarded under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enhances the company's revenue visibility in the railway safety sector. The equipment must be supplied as per RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or latest.

Order Details

The contract is a domestic award with a stipulated execution timeline of 12 months from the date of the contract. Chittaranjan Locomotive Works, a locomotive manufacturing unit under Indian Railways, is the entity awarding the order. The project scope encompasses the full deployment cycle of the KAVACH system, which is a critical collision avoidance technology.

Significance

This order reinforces Kernex Microsystems' position as a key supplier in the railway electronics domain. The deployment of KAVACH technology is vital for safety upgrades across the Indian Railways network. The company confirmed that the order does not involve any related party transactions and that the promoter group has no interest in the entity awarding the contract.