Synopsis:
West Central Railway, Bhopal, has awarded a Rs. 151.41 crore contract to the KERNEX-KEC Consortium for KAVACH implementation, raising cumulative orders since April 2024 to Rs. 3,136.5 crores. Completion in 600 days.
During Tuesday’s early trading session, shares of a company that manufactures and sells safety systems and software services for railways hit a 5 percent upper circuit on the stock exchanges, after the company secured an order worth Rs. 151.4 crores from West Central Railways.
At 10:55 a.m., the shares of Kernex Microsystems (India) Limited were trading in the green at Rs. 1,082 on BSE, up by around 3 percent, as against its previous closing price of Rs. 1,054.1, with a market cap of Rs. 1,813 crores. The stock has delivered positive returns of around 24 percent in the last one year, but has fallen by over 23 percent YTD.
What’s the News
According to the latest regulatory filings, West Central Railways, Bhopal, has issued a Letter of Acceptance (LoA) to KERNEX-KEC Consortium for the implementation of KAVACH, the indigenous Automatic Train Protection (ATP) system, over UHF backbone along with Optical Fibre Cable (OFC) and route diversity.
The project covers the sections Itarsi (excluding)–Khandwa (excluding), Bina (excluding)–Ruthiyai, and associated sections of the Bhopal Division, under West Central Railway.
The total accepted Bid cost for the project stands at Rs. 151.41 crores, with a scheduled completion period of 600 days from the date of the LoA. With this award, the cumulative KAVACH orders received (including those through consortium and JV partners) from 1st April 2024, till date have reached Rs. 3,136.5 crores.
Financials & more
Kernex Microsystems reported a significant growth in its revenue from operations, showing a year-on-year increase of around 95 percent from Rs. 28.7 crores in Q1 FY25 to Rs. 56 crores in Q1 FY26. Likewise, it reported an impressive rise in net profit over the same period to Rs. 7.4 crores from Rs. 3.6 crores, marking a growth of around 106 percent YoY.
Kernex Microsystems (India) Limited is engaged in the business of manufacturing and sales of safety systems and software services for railways, with its plant location at Hyderabad and a branch in Cairo, Egypt. The company operates exclusively in the Rail Safety equipment and services sector, which constitutes its single business segment.
Written by Shivani Singh
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