Railway KAVACH Company Bags Rs 311 Crore KAVACH Projects from Southern Railway
The company specialises in railway signalling and safety systems, particularly in the development and implementation of the Kavach (Train Collision Avoidance System).
Kernex Microsystems (India) Limited announced on June 13, 2025, that Southern Railways, Chennai, has issued Letters of Acceptance (LOA) to the KERNEX-VRRC CONSORTIUM for two significant projects. The total accepted bid cost for these projects is Rs 311.03 Crores (including GST at 18 per cent). Kernex Microsystems holds a 60 per cent share in this Joint Venture.
The first project involves the provision of Kavach (Train Collision Avoidance System) in the MAS-GDR, MAS-AJJ, and AJJ-RU Sections of the Chennai Division in Southern Railway. The cost for this project is Rs. 173.11 Crores (including GST at 18 per cent). The completion period for this project is 730 days from the date of the LOA.
The second project is for the provision of Kavach (Train Collision Avoidance System) along with Tower and 48 Fiber OFC as a backbone network in the ARAKKONAM (AJJ JN)-JOLARPETTAI (JTJ JN) Section of the Chennai Division in Southern Railway. This project is valued at Rs 137.92 Crores (including GST at 18 per cent). The completion period for this project is 540 days from the date of the LOA. Both contracts are domestic and were awarded to the KERNEX-VRRC CONSORTIUM. The company confirmed that neither the promoter nor the promoter group/group companies have any interest in Southern Railways.
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In the Quarterly Results of March 2025, the company reported a revenue of Rs 83.07 crore, reflecting a YoY growth of 832.32 per cent compared to Rs 8.91 crore in March 2024. The operating profit stood at Rs 17.12 crore, compared to an operating loss of Rs 12.35 crore in the same quarter last year, marking a turnaround. The profit after tax (PAT) came in at Rs 32.59 crore, against a loss of Rs 12.62 crore in March 2024, indicating a YoY growth of -358.24 per cent.
In FY25, the company posted a revenue of Rs 189.77 crore, registering an 868.21 per cent growth compared to Rs 19.60 crore in FY24. The net profit for the year stood at Rs 50.24 crore, compared to a net loss of Rs 26.41 crore in the previous financial year, reflecting a growth of -290.23 per cent.
The company specialises in railway signalling and safety systems, particularly in the development and implementation of the Kavach (Train Collision Avoidance System). This technology is crucial for enhancing railway safety by preventing train collisions. Their services also include establishing robust communication networks like fibre optic cables, which are essential for modern railway operations.
Disclaimer: The article is for informational purposes only and not investment advice.