Mumbai: In a breakthrough for India’s railway safety push, Kernex Microsystems (India) Ltd has secured a Rupees 2,465.71 crore contract from Chittaranjan Locomotive Works (CLW) to supply and install 3,024 sets of KAVACH on-board equipment. The project is scheduled for completion within 12 months from the purchase order date. The order, one of the largest for the company to date, covers end-to-end supply, installation, testing, and commissioning of the RDSO-specified KAVACH systems (Version 4.0 or latest). This deal reinforces Kernex's leadership in rail safety automation and significantly boosts its forward revenue visibility.
Q3 revenue outlook strengthens
This announcement comes on the heels of steadily improving quarterly results. In Q1 FY26, Kernex posted modest top-line recovery. Q2 showed acceleration with order conversions and execution gains, while Q3 marked a revenue inflection point with the company clocking its highest quarterly turnover of the fiscal year. The new CLW deal is likely to keep the Q4 pipeline strong, providing momentum heading into FY27.
Execution timeline in focus
Management confirmed the Rupees 2,465.71 crore contract is to be executed within 12 months. The sheer scale—3,024 locomotives—signals a rapid expansion in Indian Railways' KAVACH rollout, with Kernex positioned as a key implementation partner. The company sees this as a strategic validation of its technical capabilities and past execution performance in similar turnkey contracts.
Building long-term visibility
While the deal is domestic and does not involve any related party, it bolsters Kernex’s ambitions to scale operations, including exploring exports of its safety solutions. The contract aligns with the company's broader strategy to capitalize on national infrastructure upgrades, with digital signalling and automated safety systems at the core of future growth.
