Another order today.
Management is actually walking their talk 
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Important of IGBT order. look small but its not
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Has anyone attended this investor meet yesterday? Is it’s recording available on youtube? Anyone has link of access?
It was one-to-one. Unlikely that you will get any link to the meeting.
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The Daily Brief episode by Zerodha dated 22 Jan 26. Link attached
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Yes they took Concord name at 10:45 time stamp
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The above order is to be executed within 12 months. So I am just wondering, one single order execution revenue is way higher than their full year consolidated revenues. Of course, Progota is their associate with close to 50% stake.
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Management is walking there talk for real
Soon stake will be increased in Progota to above 50% to make it wholly subsidiary. Every possibility that if Kavach trial order completes by March 2026 , then by Fy27 Concord post a consolidated revenue of around 400 cr. With huge DPWCS order book + this big kavach order can easily make it to 400 cr.
Vendors need to have KAVACH v4.0 approval before executing any orders. Concord does not have this approval as of today. It only has field trial level approval, not final approval. Final approval is required.
Field trials and rigorous testing (around 5000 route kms) need to be carried out before this approval is received. Independent Safety Assessor (ISA) needs to give compliance certificate as per Safety Integrity Level - 4 (SIL-4) which is the most stringent safety standard for electronics in railways, aerospace and defence. Usually the ISAs are European agencies. Italian in the case of HBL and Kernex.
I think some 2-3 months back Concord had received a small order for field trials. They were supposed to start installations for field trails in Jan 2026.
Based on experience of other vendors this can easily take 1 year or longer. Vendors like Quadrant Futuretek, GG Tronics have been in this field trials process for more than 1 year and still they have not received the SIL-4 certification. HBL received it May 2025, Medha in July 2025 and Kernex in Oct 2025. No other vendor has it as of today.
If vendors have cleared the lab prototype stage and received orders for field trials, then they can receive KAVACH orders as a part of 20% quota for developmental vendors. That is why Quadrant, GG Tronics and Concord have received orders. However SIL-4 certification is a must for beginning order execution.
GG Tronics’ and Quadrant’s CLW tender (awarded in Dec 2024) order was cancelled because they could not get the SIL-4 certification before the contract end date (Dec 2025). This is more likely to happen with Concord for its current orders. I could be wrong and Concord may surprise everyone by getting SIL-4 certification faster than any other vendor has done previously. However this is unlikely IMO.
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Yes we cannt predict the time frame. I am expecting them to finish it quite early, not 1 year from now. Mr Gaurav lath said it takes a month for performance if goes smoothly and then assessment will take time as you rightly pointed out time frame of other developmental vendors.
For now Concord has surprised at every step and i am sure going forward as well. Lets see.
Besides Concord has multiple verticals for revenue. Its DPWCS has 300 cr orderbook. Even if kavach does not come in picture ,45-50% annual growth will still come. They have 2 tech cracked as of Hydro loco which is commissioned in Dec 2027 as of Ntpc Order and Diesel to loco conversion where they are expecting big orders. Other than that also got one order for Currently used IGBT propulsion system for locos. So expecting good growth overall
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Agree with you. They have a diversified portfolio in railway signalling and electrification.
Do you happen to know which are the other approved/developmental vendors for the 2 products that you mentioned:
- DPWCS
- IGBT Propulsion System
Since the total addressable market (TAM) seems to be large, I would not be surprised is bigger vendors such as Medha, HBL etc are also in the picture. While this has no impact on Concord, it is always a good idea to know the competitors and keep a track of them.
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Found a presentation from RDSO about DPWCS. It seems to be old (my guess is 2015). Here is a link to the presentation: https://rdso.indianrailways.gov.in/works/uploads/File/DPWCS%20.pdf
As of the date of publication of the presentation the three vendors involved in DPWCS development were:
- LOTUS WIRELESS TECHNOLOGIES INDIA PRIVATE LIMITED
- GE
- Medha
Now obviously since Advanced Rail Controls (Concord subsidiary) has received orders for DPWCS, it is also one of the vendors. However I am unable to find the latest list of all approved vendors for DPWCS. Would be great if someone could dig this out.
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Concord Management in latest Concall mentioned about 3 more vendors for DPWCS so i guess you got the right names already.
Company said 2500 cr TAM in DPWCS in coming 4 years.
IGBT propulsion system is the latest propulsion system which is used to propel new locos and also retrofitting is being done. This segment has many players.
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In one of the prior conference calls (May 2025) the management had indicated that they are working on SIL4 certification in parallel with Kavach RDSO approval. Therefore, it’s already been few quarters that SIL4 certification has been under works.
The part of the SIL4 certification that’s in-sync with Kavach trial order is pending. I would not be surprised if they get the final approval well within one year.
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I am referring to the news that was published at the time (Sep 20205) of receiving the initial trial order (Rs.19.45 cr,), where it also mentioned that a 70% of SIL-4 certification is completed, and the remaining stages are expected to be completed along with trials.
So, why would the remaining 30% take 1 year?? Are we talking any additional approvals?
Secondly enlighten me, why would the Railways award a Rs 185 cr. Kavach order which is to be executed in 1 year, if the complete certification is not in place yet?
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Railway has done that before that they gave order and approval was not done for kavach 4.0 , then orders were cancelled. Ex of Quadrant and G g tronics, both developmental vendors like Concord progota and had developmental orders of 100s of cr and still cancelled. But as rightly pointed out in above comment that Concord has completed 70% of certification work sometime back as mentioned in concall and rest is being completed along with trial order so we will see early approval and need not wait 1 year. Every company has different competence so need see case to case basis.
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I have nothing against Concord, but we should keep realistic expectations. The only way to estimate the timeline for receiving final KAVACH v4.0 approval is to look at how long other vendors have taken. Lets take the case of GG Tronics (subsidiary of CG Power).
- They received an order worth Rs 600 Cr from Chittaranjan Locomotive Works (CLW) in Nov 2024. This means that prior to receiving this order they had already entered the field trials stage and received trial order from Railways.
- In Nov 2025, 1 year post receiving the CLW order, they announced that their order stands cancelled because they could not get final approval before the contract expiry. At the same time they also mentioned that ISA and RDSO approval activities are in final stages.
- On 30th Jan 2026 they announced a new order, worth Rs 433 Cr, from CLW. In the press release they mentioned that the final ISA assessment is scheduled to commence in Feb 2026.
- During the concall held on 27th Jan 2026, they mentioned that the passenger trials are about to start and will take another 4-5 weeks. By “passenger trials” I assume that they mean the ISA assessment.
- So going by their commentary it looks like, if everything goes well, they should get the final KAVACH v4.0 by March or later.
- Knowing how slow the govt machinery works I would not be surprised if they get this approval by May or June 2026.
- So to summarize, GG Tronics has been in the field trials stage for at least 16 months (Nov 2024 to Feb 2026) and realistically it looks like they will get their approval in another 2-3 months. So that is at least 18 months.
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