HBL Engineering Shares Plunge 13% After Losing Major Kavach Tender

• HBL Engineering shares dropped 14% on January 16 after failing to secure a large Kavach tender for locomotive safety systems.
• The company did not win any orders in the Chittaranjan Locomotive Works (CLW) Kavach tender for 6,300 locomotive units due to competitive pricing from rivals.
• HBL clarified its December 18, 2025, intimation was only for the Kavach locomotive business, not the station segment.
• Despite the loss, HBL expects to secure at least ₹1,000 crore from locomotive-related Kavach business in FY27 and has ₹900 crore in station orders for FY27.
• Competitor Kernex Microsystems secured a ₹2,465.71 crore order from CLW for 3,024 sets of on-board KAVACH locomotive equipment.

Why It Matters: HBL Engineering's stock fell sharply after losing a significant Kavach locomotive tender to competitors.