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.

Kernex Microsystems (India) Limited has successfully concluded its board meeting on February 12, 2026, approving the company's unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The meeting, which commenced at 09:05 AM and concluded at 11:00 AM, delivered strong financial performance across key metrics.

Board Meeting Outcome

The board of directors approved the unaudited standalone and consolidated financial results in compliance with Regulation 30 read with Part A of Schedule III of the SEBI (LODR) Regulations, 2015. The board also took note of the Limited Review Report on unaudited financial results as required under Regulation 33 of SEBI (LODR) Regulations, 2015.

Consolidated Financial Performance

The company demonstrated robust financial performance with significant growth across revenue and profitability metrics. The consolidated results show strong operational efficiency and market expansion.

Standalone Financial Results

The standalone financial performance mirrors the consolidated strength, with the company maintaining healthy profit margins and operational efficiency.

Order Book and Business Outlook

Kernex Microsystems maintains a strong order book position with approximately ₹3,268 crores (excluding GST) in aggregate outstanding orders. Notably, ₹2,500 crores (excluding GST) relates to LOCO TCAS projects awarded by Chittaranjan Locomotive Works (CLW) and Banaras Locomotive Works (BLW), providing substantial revenue visibility.

Regulatory Compliance

The company has fulfilled all regulatory requirements with proper notifications to BSE Limited and National Stock Exchange of India Limited. The financial results are available on the company's website and stock exchange platforms in compliance with SEBI LODR Regulations. The results have been reviewed by NSVR & Associates LLP, Chartered Accountants, ensuring adherence to Indian Accounting Standards (Ind AS).