HBL Engineering provides an update on its Kavach tender and future business prospects. The company did not secure a 6,300-unit CLW loco Kavach tender. However, HBL anticipates significant Kavach-related business in FY 2027, projecting at least Rs.1,000 Crores from loco units and Rs.900 Crores from station units. Total Kavach sales for FY 2026 are expected to reach Rs.1,880 Crores.
Kavach Tender Outcome
HBL Engineering announced that it did not receive the CLW loco Kavach tender for 6,300 units due to more competitive pricing from other bidders. This decision was finalized this week.
Revised Business Expectations
While the initial total expected demand was projected at 18,429 loco units, it has now been adjusted to 12,129 units. Despite this adjustment, HBL anticipates strong business growth in the Kavach sector.
Future Kavach Business in FY 2027
HBL Engineering expects to generate at least Rs.1,000 Crores in business from loco Kavach units and Rs.900 Crores from Kavach station business during FY 2027. The company also has an additional Rs.400 Crores (approximate) expected to be invoiced in FY 2028 related to current orders. Further tenders are anticipated in FY 2027, with some value possibly being delivered during that same year.
FY 2026 Sales Expectations
For context, HBL Engineering anticipates total sales from Kavach business to reach Rs.1,880 Crores in FY 2026.
Source: BSE
