Multiple Tenders have been issued to upgrade the Kavach version from 3.2 to 4.0. HBL had said in the AGM that such tenders would be issued but there is not much opportunity here as there are low installations until now.
Snippets from the tender docs
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Hi @fabregas, could you share the path/link from where you have downloaded the vendor list. Need the current status so any info on this would be really helpful. Thanks!
Go to the IREPS website - https://www.ireps.gov.in/ - on the top right click on ‘Approval of Vendors’. You will be taken to a new page. On that page you will see a link for ‘Vendor Directory’. You will be asked to login via OTP. After logging in you will see a form. In the form enter details as shown below and click on ‘Proceed’:
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HBL-Shivakriti Consortium has been received for an order worth Rs 410.42 crores inclusive of GST at 18prcnt from Ahmedabad Division of Western Railway for supply and installation of way-side Kavach on Ahmedabad-Palanpur section and Ahmedabad-Samakhiyali section on Ahmedabad Division of Western Railway.
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HBL reported lacklustre quarterly results for Q3 FY 25.
Sales down from 600 cr to 451 cr ( y-on-y)
EBIDTA down from 113 cr to 94 cr.
PAT down from 79 cr to 65 cr.
Demonstrates the lumpiness in quarterly numbers.
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- Below was HBL guidance issued in May 2024:
Post that, there have been no further guidance revision. Assuming this is still management view, TTM revenue is 2100 Cr, EBIDTA is 444 Cr. It seems HBL is on par to meet the guidance, at least for EBIDTA.
- As expected, major moderation in Electronics, due to delay in Kavach orders.
Hopefully this should start reversing from FY26, given they have won orders close to 2000 Cr now.
- Employee benefits continue to increase. Interpreting this as ramp up to execute new orders, which is good news.
Key questions to my mind are -
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Will Kavach continue to provide good flow of orders for a few more years ? As the competitive intensity increases, does it impact incremental revenue and margins? To show Y-o-Y growth, there has to be larger tenders and HBL has to win more compared to FY26.
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Will other businesses grow significantly? How will EV trucks shape up? Will only know in a few more quarters.
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Will core business of industrial batteries continue to slow down? If not, what is the sustainable growth rate here?
Disc - invested.
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Florintree leads Rs 175 cr funding in defence tech startup Tonbo (Source: Economic Times)
HBL is invested in Tonbo.
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Is this a completely different opportunity or would the approved/developmental vendors under existing Kavach tenders are eligible?
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Actual video is here , https://youtu.be/ZZ5BlJazbcA?si=i0Ts1xiL1CK22VWn
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Bit late in posting this. I work in the defence sector and I had been to an international defence exhibition in Feb 2025. The exhibition was called IDEX Abu Dhabi. It is the biggest middle east focussed defence exhibition. UAE, Saudi etc are rich countries which almost entirely rely on foreign military equipment. Any company which is serious about exports will come to this exhibition.
HBL had a stall at this event. I interacted with the HBL rep at the stall. He mentioned that HBL has been attending this exhibition for a long time. This was the first time they also had Electronic Fuzes at their stall. Otherwise its only defence batteries. He mentioned that they have been overwhelmed with enquiries for electronic fuzes.
It has been difficult for HBL to get orders from Indian Army. Would be a positive surprise if they get any export orders.
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