Synopsis: Hirect Limited has secured its maiden Vande Metro and MEMU trainset development orders worth around Rs. 120 crore, marking its entry into next-generation railway systems. The orders validate the company’s indigenous R&D capabilities and position it for larger opportunities in India’s rapidly expanding railway modernization programme.
Shares of Hirect Limited (formerly Hind Rectifiers Limited) are likely to remain in focus after the company announced that it has secured its first-ever development orders for both Vande Metro (Namo Bharat) and MEMU trainsets, with the combined value of the two contracts standing at approximately Rs. 120 crore. The orders represent a major strategic milestone as the company expands from supplying individual railway components to delivering complete propulsion systems for next-generation trainsets.
Hirect Limited has a total market capitalization of approximately Rs. 4737 crore. The company’s shares were trading at Rs. 1335 apiece on the stock exchange, up by 2.55 percent. The stock has gained 4.15 percent over the last five trading sessions and gained 18.15 percent over the past month. The stock touched a 52-week high of Rs. 1399 and a 52-week low of Rs. 565.
What are the new orders?
According to the company’s press release, Hirect has secured its first Vande Metro (Namo Bharat) development order from the Rail Coach Factory (RCF), Kapurthala. The order, valued at approximately Rs. 60 crore, includes the design, development, manufacture, supply, installation, testing and commissioning of an IGBT-based three-phase propulsion system, traction transformers, traction motors, Train Control and Management System (TCMS) and other equipment, along with a comprehensive annual maintenance contract. The project is scheduled to be executed over 21 months.
The company has also secured its maiden Mainline Electric Multiple Unit (MEMU) trainset order from MCF, valued at approximately Rs. 60 crore. This contract involves supplying complete propulsion systems for four MEMU trainsets, including traction transformers, traction motors and integrated propulsion systems with TCMS. The execution period for this project is 24 months.
These are not routine commercial orders they are development orders, which serve as qualification projects for future large-scale production contracts. Successful execution will demonstrate the reliability and performance of Hirect’s indigenously developed propulsion technologies, significantly improving its eligibility to participate in larger railway rolling stock programmes.
Until now, Hirect has primarily supplied railway components such as transformers and power electronics. These projects elevate the company into the category of system-level solution providers, enabling it to deliver complete propulsion systems rather than standalone products. This transition substantially increases the addressable market and creates opportunities for higher-value contracts.
A major opportunity from railway modernisation
Indian Railways is rapidly expanding its fleet of Vande Bharat, Vande Metro, MEMU and other next-generation trainsets as part of its railway modernisation programme. These advanced trains require sophisticated propulsion systems, traction motors, transformers and digital train control technologies, areas where Hirect is now building expertise.
With increasing government investments in railway electrification, semi-high-speed trains and indigenous manufacturing under the Make in India initiative, companies capable of supplying complete railway systems are expected to benefit significantly from long-term order inflows.
Strong R&D provides competitive advantage
Management stated that both orders validate Hirect’s long-term investments in indigenous research and development. Over the past several years, the company has expanded beyond conventional traction transformers into advanced propulsion technologies and integrated railway systems.
The successful execution of these projects could establish Hirect as a credible domestic supplier of complete propulsion systems, reducing dependence on imported technologies while positioning the company to participate in future railway tenders.
Hirect Limited manufactures power electronic equipment including power converters, inverters, propulsion systems, rectifiers, traction transformers, traction motors, locomotive panels, battery chargers and modular pantry systems. The company serves sectors such as railways, defence, power, hydrogen, steel, cement, chemicals and industrial manufacturing through its manufacturing facilities in Mumbai, Nashik and Dehradun, while exporting its products to more than 30 countries.
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