HBL Power Systems Shares Surge 10% After Securing ₹762 Crore Kavach Contracts

Market Performance

HBL Power Systems' stock price surged by 10.3% during intraday trading on April 1, 2025. The stock reached a six-week peak, trading at ₹520.65 per share. This jump in stock price followed the announcement that the company had secured several significant contracts from Central Railway.

Main News

The primary news driving the stock's increase was the company's successful acquisition of five Letters of Acceptance (LoAs) to implement the Kavach system across 413 railway stations. The combined value of these contracts amounted to ₹762.56 crore, including 18% GST. These contracts, set to be completed within 18 months, highlight HBL Power Systems' continued growth and influence in the rail safety sector.

This was the third set of contracts the company secured in March 2025. Before this, HBL Power Systems, as part of a consortium with Shivakriti, had obtained two additional orders from Western and North Central Railway for similar safety system installations.

Earlier in the month, the company also won an order from the Bhopal Division, valued at ₹148.44 crore, to provide Kavach in various sections of the West Central Railway. These continuous wins underscore the company's expanding role in developing train collision avoidance technologies.

Company Details

HBL Power Systems is a prominent player in the battery and power systems sector. It emphasizes advanced safety solutions, including Kavach, commonly known as the Train Collision Avoidance System. The Kavach system is designed to prevent train collisions, significantly enhancing operational safety in the railway sector.

In addition to its recent contracts, the company secured an order worth ₹1,522.40 crore from Chittaranjan Locomotive Works in December, further solidifying its position in the rail safety industry.

Summary

HBL Power Systems' stock price saw a significant boost, driven by its recent success in securing contracts for the Kavach system across multiple railway divisions. With a total of ₹762.56 crore in new orders, the company continues to establish itself as a leader in rail safety technology. Despite a broader market pullback, HBL Power Systems has maintained impressive gains over the past few years.