Yes i get it. He might be in because of political contacts as Kavach orders are all govt orders. Also good that after such cases, he is already out of the company in both directorship and shareholding
Yes there has been often the write off and almost every balance sheet and its on the instance of auditor rather than self. Since no concall so no answers just that they are non recoverable. rest assumptions we have to make
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But that also raises concerns for usâwhether Kernex will continue to receive large orders if the political person backing him is no longer a director in the company. Moreover, according to managementâs guidance, they plan to complete the remaining part of the âš550 crore order received in 2022 by Q1 FY26. However, I donât believe they have completed the full order yet. This raises further doubts about whether they can execute these orders at all, as they donât seem to have enough working capital to carry out these orders properly
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Kernex order book :
In marchâ25 PPT : Total Value of order book as on: 2,124.16 Crs
- CLW: 1,730 Crs
- SER: 179.21Crs
- KMIL Exclusive: 1,735.38 Crs
- With Partners : 388.78 Crs
Total 3500cr order book on 29 Aug (assuming 30% with partners in consortium). If someone knows the exact bifurcation of revenue to Kernex vs partner, please share.
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Hi..
Is kernex able to do the 4.0 kavach order.
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Status of various projects as per the details given in annual report:
| OA / Date | Client / Issuer | Consortium / Partner | Project / Scope | Order Value (INR) | Completion period | Detailed Status (as per AR FY25) |
|---|---|---|---|---|---|---|
| 04-May-2024 | Integral Coach Factory (ICF), Chennai | Kernex (single) | Supply & commissioning of 8 TCAS/KAVACH units | âš5.77 cr | By 31-Mar-2025 | Total 55 TCAS units supplied, of which 25 installed and commissioned at designated sites. Balance 30 units under active installation, being executed as per ICFâs planned schedule. All work is compliant with functional & technical specifications. |
| 06-Dec-2024 | Chittaranjan Locomotive Works (CLW) | Kernex (lead) | Supply & commissioning of 2,500 On-board KAVACH sets | âš2,041.40 cr | By 05-Dec-2025 | Raw material procurement in progress; purchase orders for key items released. First batch of onboard units under internal manufacturing. Project execution phased; long-term maintenance scope included. |
| 27-Feb-2025 | South Eastern Railway, Kolkata | KernexâMRT (Kernex lead) | KAVACH on GQ & GO routes (688 RKM, Kharagpur & Chakradharpur divisions) | âš325.33 cr | 1,000 days | Station survey completed in Chakradharpur, work started in Kharagpur section. RSSI survey initiated. Procurement of raw materials in progress. Appointment of Independent Safety Assessor (ISA) under way for project certification. |
| 01-Apr-2025 | North Central Railway, Prayagraj | KernexâKEC consortium | Provision of KAVACH with tower & 4Ă48 OFC backbone (BhuteshwarâDholpur) | âš85.14 cr | 500 days | Station surveys completed; RSSI survey ongoing. Material procurement under way. Appointment of ISA assessor initiated. Testing activities to follow after installation. |
| 06-Jun-2025 | Western Railway, Ahmedabad | KernexâKEC (~70% Kernex share) | KAVACH v4.0 + UHF & OFC (PalanpurâSamakhiyaliâGandhidham, 300.71 km) | âš182.81 cr | As per tender | Raw material procurement under progress; purchase orders placed. Station surveys scheduled. ISA assessor appointment in process. Execution being phased in line with tender. |
| 13-Jun-2025 | Southern Railway, Chennai | KernexâVRRC (~60% Kernex share) | MASâGDR, MASâAJJ, AJJâRU, AJJâJTJ KAVACH sections | âš311.03 cr | As per filing | Station surveys completed across awarded sections. RSSI survey under way. Raw material procurement for Milestone 2 in progress. Appointment of ISA assessor initiated. Project in early execution stage. |
| 23-Jul-2025 | South Central Railway | KernexâVRRC JV | Upgrade of KAVACH v3.2 â v4.0 (Sadashivpet RdâBidarâParliâParbhani section) | âš21.03 cr | As per filing | Inspection by Principal Chief Signal & Telecom Engineer (PCSTE) successfully completed (covering technical, operational, safety parameters). Handover process in progress: final documentation, resolving observations, transfer of control to Railways, training staff, signing certificates. Raw material procurement done, first batch under internal manufacturing. |
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That question u surely ask !
Why People are bullish for this company ?
Why MF has entered and increased stake here !
Invested & Baised !
In kernex FII are reduced from 1.16% in Dec 24 to 0.52 in June 25.
Kernex needs to have some plan after kavach as well as HBL clearly mention how their plans are till 2030, growth drivers other than kavach in railways etc. Looks like kernex is stuck in Kavach 4.0. This could be like Tejas network where after one big order they are losing track. Kernex management needs to clarify but they dont do concall
Out of 4 products mentioned 2 are done and 2 are not being worked on. I have company reply. What is worked on is also not with any big TAM .
Can you elaborate on the company reply? Which products are done and which ones are not being worked on?
Anybody attended agm today I tried to attend but couldnât due to other commitments
Kernex Microsystems 2025 AGM highlights:
Chairman Speech :
Domestic Project Updates:
- NCR- A,North Central Railway, KAnpur section - Milestone 1, 2 completed, installation completed testing in progress.. Supply of units for the entire project is complete and the supply of spares is planned. The loco installation is complete for all the planned 139 locos. Required documentation for the phase for ISA acti-vity is in progress.
- NCR-B sections between Kanpur and DDU-Milestone 1, 2 completed, installation completed testing in progress.Supply of units for the entire project is complete and the supply of spares is planned. The loco installation is complete for all the planned 150 locos. The required documentation for the ISA is in progress.
- Integral Coach Factory, Chennai- 55 units of TCAS supplied, 25 installed and commissioned from that at designated locations. The installation of the remaining units is currently in progress and is being carried out as per the schedule planned by ICF.
- SCR, South Central Railway project, automatic block signalling system in Vempulapadu and Mudunuru sections - this is a JV project of 109 cr for 70 km split into 4 milestones. For milestone 1 and milestone 2, covering a length of 18.69 kilometres, and milestone three, spanning 20.1 kilometres, the physical work has been completed and currently awaiting final approval and clearance from the concerned authorities. Milestone four, encompassing about 31.93 kilometres, this milestone is presently under active execution with installation-related works in progress as per schedule.
- Chittaranjan loco works - for the supply and installation of loco TCAS. Company has bagged an order for supply, installation, testing and commissioning of, defect liability, and long-term annual maintenance of onboard Kavach equipment, along with supply and installation of cab antenna including complete wiring, harnessing, cabling and connection with the loco power system for Chittaranjan loco works. The total number of units to be supplied is 2,500 with a value of approximately 2041.40 crores. Critical procurement for the project is currently in progress and orders have already been placed to ensure timely execution of the work. The first batch of units are getting manufactured internally.
- South Eastern Railway:. Kernex Microsystems in consortium has successfully secured a major, major contract valued at approximately 325.33 crores. This prestigious order involves the supply, installation, testing and commissioning of Kavach across the GD and GO routes, 688 route kilometres, in the Kharagpur to Chakradharpur division . This significant achievement underscores the technical expertise and execution capabilities of both consortium partners in the field of advanced railway signalling and safety systems. It also marks a key milestone in their contribution to Indian Railwaysâ modernization and safety enhancement initiatives. The survey of stations in the Chakradharpur section is complete and the work is in progress at the Kharagpur section. The other survey activities, like the radio survey, are in progress for the entire section to meet the milestone one requirements. Material procurement is in progress for the plan for milestone 2 requirements. Appointment of an SSR for the ISA activity is in progress.
- North Central Railway, between Bhuteshwar-to-Dholpur section. The Kernex-AEC consortium has bagged an order for the provision of Kavach along with the tower and 48-fibre OFC as a backbone on the Bhuteshwar-Mathura section in NCR, valued at approximately 85.14 crores. Material procurement for the project is currently in progress and purchase orders have been placed. The survey of stations is in progress for the entire section to meet the milestone 1 requirements. Material procurement is in progress for the units planned for milestone two requirements. Appointment of an SSR for the ISA activity is in progress.
- Madras-Gudur, Madras-Arakonam, Arakonam-Renigunta section. The Kernex-VRRC consortium has bagged an order for Kavach. This is approximately 271 kilometres of track in the Southern Railway. It is valued at approximately 173.1 crores. Material procurement for the project is currently in progress and purchase orders have already been placed. The survey of the stations in the entire section is completed. The other survey activities like the radio survey are in progress for the entire section to meet the milestone one requirements. Material procurement is in progress for the units for milestone two requirements, and the ISA activity is in progress.
- Arakonam-Jolarpet:The Kernex-VRRC consortium has bagged an order for Kavach along with a tower and 48-fibre OFC network on the Arakkonam-Renigunta section of the Chennai division in Southern Railway, valued at approximately 135 crores. Material procurement for the project is currently in progress and purchase orders have already been placed to ensure timely execution. The survey of stations in the entire section is complete. The other survey activities like the RSSA survey are in progress for the entire section to meet the milestone one requirements. Material procurement is in progress for units planned for milestone two requirements. Appointment of an SSR for the ISA activity is in progress.
- Palanpur-Samakhiali section of the Ahmedabad division of Western Railway. The Kernex-AEC consortium has bagged an order for TCAS Version 4.0 or latest, including the provision of a communication backbone based on UHF and OFC , valued at approximately 182.81 crores. Material procurement for the project is currently in progress and purchase orders have already been placed . The survey of stations is planned in the entire section and the POs were released. Material procurement is in progress for unit planning requirements. Appointment of an SSR for the ISA activity is in progress.
International Project Updates:
- Egyptian National Railways project: Total (Level Crossing System, LxCS) gates supplied are 136. Total gates installed and commissioned are 124 . Final handover status is in progress. 100% material supply has been completed. The project was mutually agreed to be shortened from 136LxCS to 124 LxCS. Two LxCS were repaired and rebuilt. Remaining material related to the 10 LxCS that were not installed is currently being handed over to Egyptian National Railways. So far, 102 wheel sensors have been handed over. Warranty maintenance for the three groups of 102 LxCS has been completed. For the fourth group, it is also completed. Final handover of LxCS is ongoing. Final handover has been completed for 81 out of 85 LxCS that are currently operational. ENR has dismantled and removed 39LxCS out of the 124LxCS that were commissioned.
Future outlook:
- From the Union Budget for the year 2024-25 : Key highlights and the strategic impact for the company are: Kavach deployment has been made a national priority as Indian Railways announced a basic rollout across 40,000 plus kilometres. Budgetary allocations for rail safety have seen a marked increase with priorities in high-density and high-speed corridors. Companies with proven expertise in Kavach, such as Kernex, are strategically positioned to leverage enhanced market visibility and it opens doors to participation in upcoming multi crore tenders.
QnA highlights-Company response :
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Order book open: Kavach is 2,550 crores and non-Kavach is 40 crores. Other than CLW, all projectsâ timelines for completion vary from 24 months to 30 months. These station Kavach projects have been planned in advance and kernex can achieve those station Kavach targets. One CLW tender which is the big order, is spread across the five zones, that is Central Railway, South East Central Railway, North Central Railway, East Central Railway and South Eastern Railway. There are some challenges. One is mainly from the RDSO side and Kernex side and the supply of the critical materials. On Kernex part, they have already procured the materials and production is on. For Kavach, all field trials are done and reports have been submitted and are awaiting the approvals. And as a part to speed up the execution, Kernex is in close contact with regulatory authorities. Kernex have increased our manpower, one is through direct employment and through vendors for implementation.
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The revenue which we are expecting this financial year is approximately 750 crores in this financial year 2026. For Kavach approval status, we have completed the field trials successfully and reports have been submitted to the ISA and as well as reports have been submitted to RDSO, which is under examination by the RDSO.
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Asia market for Kavach. The Government of India and Company is also exploring⌠Kernex last year made an agreement with a Indonesian company. It may take time, but there are possibilities for the market in GCC. With promoterâs support, Kernex is planning to utilise the electronic manufacturing facilities for the defence sector and other sectors. In discussion with DRDO and some of the companies who have their products but they donât have the production capacity. Kernex is planning, and it is in the discussion stage and will announce once it is toward the concrete stage.
*** The completion of the CLW is a real challenge, which is explained earlier. If it is completed, bidding capability will rise, and if it is not, bidding capability will have an impact.** -
For non-Kavach projects, they have already entered one JV project and we are planning to bid for non-Kavach projects in upcoming tenders of railways for ABS, or system integration, and then CTC.
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Reg JV partnerships. Kernex has given the JV partner non-Kavach works, that is OFC cable backbone and radio towers, and the service buildings required for the radio tests. This is the scope of JV partners. Increased the staff up to 560. May go beyond that in coming months. Company already planned the manpower required for the project execution.
*Regarding shareholding: The promoter shareholding was decreased due to the reclassification of promoters. None of the promoters has sold any shares.
CFO Response questions from the finance side:
- Q.What is the CAPEX required and what are the margins?
A.Have a huge infrastructure at the corporate office in Hyderabad. Having 10 acres of land and 2.65 lakh square feet of building construction already in place. So not much of CAPEX required. Regarding the working capital, Kernex have assessed limits as 275 crores for the financial year 2025-26 and have already tied up 267.5 crores already. Kernex has sanctions in place, and has started taking disbursements and also been issued bank guarantees. So donât see any issue from the working capital side. That is already well planned and they are being able to execute it. And regarding margins. FY25 EBITDA margins are 21.6%. Company is very much hopeful of maintaining the existing margins for coming future years.
President of Projects
- Introduce a new addition to the Kernex team, Mr. Ganesh Kumar Dwivedi, as President of Projects, Operations and related projects. Heâll be taking care of the entire Kavach related sector.
- Ganesh Kumar: âI am an ex-Principal Chief Signal and Telecom Engineer from Indian Railways. I carry along with me about more than 37 years of experience in signalling and control systems from design, project management, operations management and general management. For the first time in Indian Railways, this was introduced, and South Central Railway did the program management for about 1200 kilometres which is already under operation, and a new system has been established by way of that work. Every zone of Indian Railways is following those procedures and processes and Iâm confident that on the board of Kernex, we will take the company to greater heights in the field of not only Kavach, but control systems and further systems. So with the hope and with the cooperation of all the stakeholders, we will be taking it to greater heights. Thank you so much.â
Note : This is not a Company transcript, its my own notes. There could be few errors from my end as the audio was not clear sometimes.
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Thank you for the detailed notes Satish. Regarding Kavach V4 .0, During the last con call held in Q4FY25, the company had mentioned that 99% of the work is done and that they are awaiting approval very soon. Looks like they havenât received the approval yet. Did the management explain any reasons behind the delay?
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What I recall is its mostly delay from the RDSO on approvals.
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Kernex receives KAVACH ver 4.0 approval from RDSO! Please see the attached announcement.
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Consider!
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New onloboard locomotive tender floated. This time by Banaras Locomotive Works (BLW). Tender is for 2679 locos, worth approx Rs 2100 Cr (incl 18% GST). More details in this post:
This is nearly Rs 9600 Cr worth of just Loco KAVACH tenders.
In another update - GG Tronics, a subsidiary of CG Power & Industrial Solutions Ltd, has announced that their Loco KAVACH order awarded by CLW in Dec 2024 (part of the 1st 10k Loco KAVACH tender) stands cancelled due to delay in getting KAVACH v4.0 approval. The tender had a hard stop date of 11th Dec 2025. Please see this announcement:
While this is bad news for passenger safety because it implies that incomplete locos will go for retendering and result in delay of KAVACH rollout, it is a good thing for companies who already have v4.0 approval. They will get some share of un-finished locos in the future tenders.
This also means that Kernex wonât get any extension for the completion of their 2500 loco KAVACH order. Most likely a major part of this order will remain unfulfilled by 11th Dec 2025. HBL, which was the first one to receive v4.0 approval in June 2025, has gone on record to say that they wonât be able to complete their 2200 loco KAVACH order by the deadline. Kernex which received the approval only in mid-October, will likely end up with majority of their order being unfulfilled.
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