Magellanic Cloud Limited has announced that its wholly owned subsidiary, Provigil Surveillance Limited, has received a Letter of Acceptance (LOA) from South Eastern Railway, Kharagpur Division, for a project with an aggregate value of approximately ₹3.44 Crore. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Circular dated November 11, 2024.

Project Scope and Key Details

The order covers the provision of CCTV systems at Goods Sheds, along with modernization and upgradation of infrastructure at Kharagpur and PKU Goods Sheds under the Kharagpur Division of South Eastern Railway. The project's scope is comprehensive, encompassing multiple technology and infrastructure components:

• Supply, installation, commissioning, and integration of AI-led CCTV surveillance systems
• Networking infrastructure deployment
• Centralized monitoring systems setup

The key parameters of the contract are summarized below:

Management Commentary

Commenting on the development, Mr. Joseph Sudheer Reddy Thumma, Global CEO & Managing Director, Magellanic Cloud Limited, stated:

"Railway and logistics environments operate across large, high-movement zones where conventional monitoring systems alone are no longer sufficient. For instance, at goods sheds and cargo handling points, AI-based e-surveillance can help authorities monitor movement patterns, detect unauthorized access, identify operational anomalies, and improve incident response in real time.

Projects such as these reflect the increasing convergence of physical infrastructure with intelligent AI-powered digital systems designed to support large-scale operational environments. The company remains focused on strengthening its presence in AI-powered e-surveillance, centralized monitoring systems, and critical infrastructure technology solutions across sectors like transportation and logistics."

Compliance and Related Party Disclosures

The company has confirmed that none of the promoter, promoter group, or group companies have any interest in South Eastern Railway, the entity that awarded the order. Additionally, the contract does not fall within the purview of related party transactions. The disclosure was made in accordance with the requirements of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the relevant SEBI Circular dated November 11, 2024.

Magellanic Cloud Limited has expanded its strategic defence partnership to include Xtend alongside Rayonix Tech Private Limited, with the updated collaboration now valued at $11 million. The enhanced partnership aims to create comprehensive local manufacturing, testing, and distribution capabilities for UAV systems to support India's defence modernization goals.

Enhanced Partnership Structure

The strategic agreement, originally executed on April 25, 2026, has been restructured to include Xtend as a key technology partner. The three-way collaboration focuses on developing and supplying warfare-grade UAVs and drones tailored to India's evolving national security requirements. The partnership will enable comprehensive local manufacturing, rigorous testing protocols, and efficient distribution networks for next-generation UAV solutions.

Comprehensive UAV Capabilities

The expanded partnership will establish end-to-end capabilities covering the entire UAV lifecycle from manufacturing to deployment. The collaboration encompasses tactical operations, surveillance, reconnaissance, and security applications, with particular emphasis on creating robust testing facilities and distribution networks. The joint venture aims to deliver cutting-edge autonomous drone technologies while supporting indigenous defence manufacturing.

Strategic Implementation Framework

The collaboration will continue to be executed through a Special Purpose Vehicle (SPV) with balanced governance structure ensuring all partners have appropriate representation. The agreement covers comprehensive technology support, investment commitments, and joint execution of UAV technology projects across India. The enhanced structure provides for coordinated manufacturing, quality testing, and strategic distribution capabilities.

Defence Sector Impact

This enhanced partnership represents a significant advancement in India's self-reliance in defence production, particularly in UAV and drone technology segments. The collaboration with Xtend brings additional technological expertise while the comprehensive approach covering manufacturing, testing, and distribution creates a complete ecosystem for UAV development and deployment in support of India's Atmanirbhar Bharat initiative.