Synopsis:
HBL Engineering Ltd. secured a ₹54.12 crore contract from West Central Railway for installing KAVACH safety systems across 18 stations over 166 km in the Kota division.
The shares of the Small-Cap company, specializing in the design, development, and manufacturing of specialized batteries and power electronics, jumped by upto 4 percent upon receiving a work order from West Central Railway for a Kavach Project.
With a market capitalization of 19,639.26 Crores on Tuesday, the shares of HBL Engineering Ltd jumped upto 4.3 percent, making a high of Rs. 713.40 compared to its previous close of Rs. 683.55.
HBL Engineering Ltd (formerly HBL Power Systems Ltd.), engaged in the design, development, and manufacturing of specialized batteries and power electronics, has received a Letter of Acceptance from West Central Railway for a contract worth Rs. 54.12 crores (inclusive of GST).
The project involves the survey, design, supply, installation, testing, and commissioning of trackside KAVACH safety equipment across 18 stations and level crossing gates over a 166 km stretch in the Kota-Ruthiyai and Sogaria-Kota “C” sections of the Kota Division. The work is to be completed within 700 days, and HBL’s total order book now stands at Rs. 4,083.17 crores.
Financials & Others
The company’s revenue rose by 18.23 percent from Rs. 525.59 crore to Rs. 621.41 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 80.09 crore to Rs. 143.27 crore during the same period.
The company maintains a strong financial position with a low debt-to-equity ratio of 0.05 and healthy liquidity, as its current assets exceed current liabilities. This indicates financial stability and low reliance on external borrowing.
Over the past three years, the company has delivered solid performance with an average ROCE of 15.76%, showcasing efficient capital usage. It has also achieved impressive average revenue growth of 21.79% and net profit growth of 44.09%, reflecting strong momentum and profitability.
In the latest quarter, HBL Engineering Ltd reported segment revenues of Rs. 337.38 crore from Industrial Batteries (up from Rs. 333.67 crore YoY), Rs. 73.65 crore from Defence & Aviation Batteries (down from Rs. 92.16 crore), and Rs. 180.40 crore from Electronics (up from Rs. 87.30 crore). Unallocated revenue stood at Rs. 12.63 crore, compared to Rs. 10.20 crore in the same quarter last year.
HBL Engineering Ltd, formerly known as HBL Power Systems Limited, is a prominent Indian company specializing in the design, development, and manufacturing of advanced battery technologies, power electronics, and engineering solutions.
It specializes in three key areas: Batteries, producing a variety of specialized types like Lead Acid, Nickel Cadmium, Silver Zinc, and Lithium for defense, railways, aviation, and industrial use; Electronics, focusing on railway and electric mobility solutions such as the Kavach Train Collision Avoidance System and electric drivetrain kits; and Defense, developing specialized batteries for military aircraft and torpedoes alongside electronic systems for defense applications.
The company has a set of prominent clients with which they have strong, long-term relationships, including the Indian government customers, the Indian Air Force, Navy, Ministry of Defence labs, and Indian Railways, with certifications to deploy safety-critical systems.
Written by Sridhar J
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