HBL Engineering Limited has updated stakeholders on recent developments in its Kavach business, including the outcome of a significant tender and revised revenue projections for the upcoming fiscal year. The company communicated these updates to stock exchanges on January 15, 2026, providing clarity on its position in the railway safety equipment market.

Tender Outcome and Impact

The company disclosed that it did not secure the CLW locomotive Kavach tender for 6,300 units, which was decided during the week. The primary reason cited was competitive pricing, with other bidders offering lower rates than HBL Engineering's proposal.

This development has resulted in a reduction of the company's visible locomotive demand from 18,429 units to 12,129 units, as previously communicated in the company's December 18, 2025 intimation to exchanges.

Revenue Projections for FY2027

Despite the tender setback, HBL Engineering maintains robust revenue expectations for its Kavach business across two key segments. The company has provided detailed projections for both locomotive and station business components.

The locomotive business projection of ₹1,000.00 crores is based on the reduced demand of 12,129 units, with additional business expected to carry forward into FY2028. For the station segment, the company has existing orders worth ₹900.00 crores planned for invoicing during FY2027, with an additional ₹400.00 crores scheduled for FY2028.

Current Business Performance

The company provided context for its projections by sharing current year expectations. For FY2026, HBL Engineering anticipates total Kavach sales of ₹1,880.00 crores, establishing a baseline for comparison with the projected FY2027 figures.

Future Business Opportunities

HBL Engineering indicated that additional opportunities remain on the horizon. The company expects more tenders in the station business segment during FY2027, with potential for some value delivery within the same fiscal year. This suggests continued growth prospects beyond the current order book.

Clarification on Previous Communications

The company clarified that its December 18, 2025 intimation to exchanges specifically addressed locomotive Kavach business and did not include station business projections. This distinction helps stakeholders understand the comprehensive scope of the company's Kavach operations across both locomotive and station segments.

The update demonstrates HBL Engineering's transparency in communicating both challenges and opportunities in its core business segments, providing stakeholders with a clear picture of expected performance despite competitive market pressures.

HBL Engineering has provided a comprehensive business update regarding its locomotive Train Collision Avoidance System (TCAS) delivery program through a regulatory filing. The company successfully delivered 1,659 units out of a total order of 2,200 units by the December 13, 2025 deadline, with the remaining 541 units deemed cancelled according to purchase order terms.

Delivery Performance and Order Completion

The company's delivery performance demonstrates strong execution capabilities in the specialized railway safety equipment segment, achieving a 75.40% completion rate of the original order.

The cancellation of 541 units occurred as per the terms of the purchase order when delivery could not be completed by the specified deadline.

Market-Wide Tender Performance

The regulatory filing reveals broader market dynamics in the locomotive TCAS segment. The total tender floated was for 10,000 units across multiple suppliers, with industry-wide delivery challenges.

All undelivered units across suppliers, approximately 7,000 units, are deemed cancelled and expected to be floated as a new tender with an unknown date.

Future Demand Projections

HBL Engineering projects substantial demand growth for locomotive TCAS units in the upcoming year. The company has identified three additional tenders totalling 11,429 units that may be decided before March 31, 2026.

The company notes that such substantial demand was unforeseen when the last intimation was made to stock exchanges, indicating significant market expansion potential.

Railway Safety Equipment Market Outlook

The substantial projected demand reflects growing emphasis on railway safety infrastructure and expanded TCAS implementation across railway networks. HBL Engineering's successful delivery rate of 75.40% positions the company favorably among suppliers in this specialized segment. The company's performance, delivering over half of the total market deliveries, demonstrates its technical expertise and execution capabilities in the critical railway safety equipment sector.