HBL Engineering to be in Focus Following Major ₹1,714 Crore Kavach Order Win

HBL Engineering Sees Significant Order Win, Shares Likely to Attract Investor Interest

On May 29, shares of HBL Engineering, a leading player in the battery and power systems sector, are expected to draw investor attention after the company secured a substantial order worth ₹1,714 crore from Chittaranjan Locomotive Works. According to an exchange filing made on Thursday, the order is for the supply, installation, testing, and commissioning of onboard Kavach locomotive equipment (Version 4.0), with a completion deadline set for 12 months from the commencement date.

This latest order win is not an isolated incident for HBL Engineering, as the company has been under the spotlight of investors in recent months due to multiple Kavach-related order wins. In April, the company secured multiple orders, including a ₹179.79 crore contract from Banaras Locomotive Works (BLW) for the supply and commissioning of onboard Kavach equipment (Version 4.0), as well as a similar order worth ₹83.81 crore from Patiala Locomotive Works (PLW).

Kavach, also known as the Train Collision Avoidance System (TCAS) or Automatic Train Protection System (IRATPS), is an advanced railway safety solution designed to prevent train collisions and enhance operational safety. The company's latest order win is a testament to its growing presence in the battery and power systems sector.

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In its March quarter and FY26 financial results, HBL Engineering reported a 42.2% year-on-year rise in net profit, driven by strong revenue growth. Net profit for the quarter stood at ₹64 crore, compared to ₹45 crore in the corresponding quarter last year. Revenue rose 27% to ₹604.1 crore from ₹475.6 crore a year ago. Revenue from its core battery segment remained largely flat year-on-year, while revenue from the electronics segment improved sharply to ₹179 crore from ₹54 crore in Q4FY25.

However, operating performance remained weak, with EBITDA declining 6.5% year-on-year to ₹74.7 crore from ₹80 crore, while EBITDA margin contracted sharply to 12.37% from 16.80% in the year-ago quarter. For the full financial year FY26, revenue surged to ₹3,303 crore from ₹1,967 crore in FY25, while net profit jumped to ₹798 crore from ₹262.57 crore.

Amid multiple order wins, the stock staged a strong recovery in April, rebounding 30% and snapping a three-month losing streak. Between March 2023 and November 2025, the stock witnessed a one-way bull run, rallying from ₹107 apiece to ₹885 apiece, delivering a massive return of 727%. Along the way, the stock touched a record high of ₹1,122. In terms of annual performance, the stock has delivered positive returns in each of the last six years, including two multibagger years. During this period, the stock has surged by a massive 5,742%. Cumulatively, the stock has gained nearly 700% over the last three years and 1,708% over the last five years.

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