Railway kavach stock jumps 6% after securing ₹575 Cr order from Integral Coach Factory

Synopsis: HBL Engineering Limited rose 6% after securing a domestic order from Integral Coach Factory, Chennai, for the supply, testing, and commissioning of On-board KAVACH equipment (Version 4.0), to be completed within 12 months.

The shares of the Small-Cap company specialising in the design, development, and manufacture of advanced batteries, railway electronics, and defence equipment, are in focus upon securing an order from Integral Coach Factory.

With a market capitalization of Rs. 22,429.23 Crores on Sunday, the shares of HBL Engineering Limited rose upto 5.7 percent, reaching a high of Rs. 828.40 from its opening price of Rs. 783.20. 

HBL Engineering Limited, engaged in the design, development, and manufacture of advanced batteries, railway electronics, and defense equipment, has received a domestic order worth Rs. 575 crore from Integral Coach Factory, Chennai. The order is for the supply, testing, and commissioning of On-board KAVACH equipment (Version 4.0) and is to be completed within 12 months. 

Recently, HBL Engineering Limited has informed the stock exchanges that Cochin Shipyard Limited (CSL) has approved a proposal to form a domestic joint venture with HBL, as disclosed by CSL on 28 January 2026. The proposed JV will focus on developing electric mobility technologies and energy storage solutions for the marine sector, targeting both domestic and global markets.

Under the proposed structure, HBL will hold 60% and CSL 40% in the joint venture. The collaboration aims to leverage the complementary strengths of both companies to build indigenous, sustainable marine technologies, aligned with the Government of India’s Aatmanirbhar Bharat initiative, and to capitalize on the growing adoption of electric and hybrid propulsion systems in the marine space.

Financials

The company’s revenue rose by 135 percent from Rs. 521 crore in September 2024 to Rs. 1,223 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 87 crore to  Rs. 387 crore during the same period.

The company demonstrates strong financial efficiency with a ROCE of 27.3% and ROE of 20.6%, indicating effective use of capital and healthy shareholder returns. Its debt-to-equity ratio of 0.04 reflects a nearly debt-free balance sheet, while a PEG ratio of 0.70 suggests the stock may be attractively valued relative to its growth potential.

Operationally, the company has delivered robust profit growth at a CAGR of 64.6% over the last five years, highlighting consistent earnings expansion and strong business execution. This combination of high growth, low leverage, and solid returns points to a fundamentally strong and well-managed company.

HBL Engineering Ltd (formerly HBL Power Systems Ltd), founded in 1977 and headquartered in Hyderabad, is a leading Indian engineering company specializing in niche batteries (lead-acid, NiCd, lithium), defence electronics, railway signaling, and e-mobility solutions. It focuses on B2B/B2G markets, offering tailored, high-technology power systems for demanding sectors like aviation, defense, and oil & gas. 

HBL maintains strong, long-term relationships with leading system integrators, EPCs, and companies in railway, aviation, and defence, as well as with government customers in India, including the Indian Air Force, Indian Navy, and MOD labs. 

It serves customers in over 80 countries, providing specialist batteries, electronics, and engineering solutions tailored to specific needs. Through regional support offices in the EU and USA, HBL ensures timely delivery, resilient performance, and compliance with confidentiality and security standards, supporting customers throughout the full lifecycle of products and solutions.

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