HBL Engineering Shares Surge on Securing ₹762.56 Crore Railway Kavach Orders

HBL Engineering Limited has recently been awarded a significant contract by Central Railway for the implementation of the Kavach railway safety system. 

This development marks a crucial step in enhancing railway safety and automation in India. The contract, comprising five separate agreements, highlights HBL Engineering’s growing role in the railway infrastructure sector.

Details of the Kavach Contracts

The Central Railway has awarded five letters of acceptance to HBL Engineering Limited for the provision of Kavach across its network. The key details of the contracts include:

• Total Contract Value: ₹762.56 crores (inclusive of 18% GST).
• Number of Stations Covered: 413.
• Total Distance Covered: 3,900 km.
• Project Duration: 18 months for each contract.

This deal significantly expands HBL’s portfolio in the railway safety sector. The Kavach system is an advanced safety solution designed to prevent train collisions by automatically controlling train movements under certain conditions.

Implications for HBL Engineering and Indian Railways

HBL Engineering’s successful acquisition of this contract positions the company as a major contributor to India’s railway modernisation efforts. With the total Kavach contracts awarded to date reaching ₹3,618 crores, the company is set to play a crucial role in enhancing railway safety and efficiency.

Additionally, the disclosure confirms that these contracts are not related party transactions, ensuring transparency in the deal. HBL Engineering’s expertise in railway signalling and automation further strengthens its reputation as a trusted partner in India’s railway infrastructure projects.

HBL Engineering Share Performance 

As of April 01 2025, at 10:00 AM, HBL Engineering share price was trading at ₹518.25 per share, reflecting a jump of 9.68% from its previous closing price. Over the past month it has surged by 22%.

Conclusion

The awarding of the Kavach contracts to HBL Engineering Limited is a major milestone in India’s railway safety initiatives. With the project covering 3,900 km across 413 stations, this contract underscores the company’s commitment to improving railway operations through cutting-edge technology. 

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