This Railway Kavach stock, engaged in designing, manufacturing, and supplying specialized batteries, defence and aviation electronics, solar photovoltaic modules, and railway electronics, is in focus after the company announced its revenue guidance of Rs. 3,000 crore for the financial year 2026
With a market capitalization of Rs. 24,570.56 crore, the shares of HBL Engineering Limited were currently trading at Rs. 886.40 per equity share, rising nearly 1.01 percent from its previous day’s close price of Rs. 877.50.
Management Guidance
HBL Engineering Limited is expecting strong growth in the coming years. For FY26, the company is aiming for sales of around Rs. 3,000 crore, which is more than 50 percent higher than its FY25 revenue of Rs. 1,967 crore.
FY30 Vision
HBL Engineering Limited has set a long-term revenue target of over Rs. 4,500 crore by FY30. If achieved, this would mean the business will more than double in size compared to its current level.
This growth is expected to be driven mainly by the company’s key business segments, starting with Rail Signalling as the leading contributor, followed by Fuzes, Defence Li-ion systems, and its Batteries division.
Kavach Future Outlook
Kavach-related sales are projected to be around Rs. 1,300-1,500 crore annually in FY26, FY27, and FY28, after which the demand may slightly decline. HBL also expects that completing Kavach implementation across the entire Indian Railways network will take more than five years.
Capital Allocation
HBL Engineering Limited has also planned a capital expenditure of around Rs. 100 crore in CY25 to begin in-house production of high-energy-density cells, building on its earlier investment of Rs. 40 crore for a pilot plant.
Order Book
As of July 31, 2025, HBL Engineering Limited has a strong order book of Rs. 4,479 crore, a significant increase from Rs. 1,178.75 crore recorded on August 31, 2024. This includes a major order from CLW for supplying and installing onboard TCAS equipment in 2,200 locomotives, to be completed within 12 months.
Client Base
HBL Engineering Limited has been consistently receiving repeat orders from well-known clients such as Bharat Sanchar Nigam Limited, Indian Railways, and Indus Towers Limited, among others.
The company’s order book includes a wide range of products and solutions like TCAS/TMS systems, NiCad and sintered batteries, Silver Zinc, submarine and Lithium batteries, valve-regulated lead-acid batteries, railway signalling projects, and various defence electronics.
Company Overview
HBL Engineering Limited was founded in 1977 and is based in Hyderabad, and is a leading manufacturer of specialized batteries and power systems. The company was created through the merger of Hyderabad Batteries Ltd. and SAB Nife Power Systems Ltd., and has steadily grown into a strong engineering-driven organization serving many key industries.
The company offers a wide range of batteries, including lead-acid, nickel-cadmium, silver-zinc, lithium-ion, and other custom-designed battery solutions used in defence, railways, telecom, aviation, and renewable energy.
In addition to batteries, the company also produces railway and defence electronics, solar photovoltaic modules, and other engineered power products, supplying its solutions to both Indian and global markets.
Recent quarter results
Coming into financial highlights, HBL Engineering Limited’s revenue has increased from Rs. 521 crore in Q2FY25 to Rs. 1,223 crore in Q2 FY26, which has grown by 134.74 percent. The net profit has also grown by 344.83 percent from Rs. 87 crore in Q2 FY25 to Rs. 387 crore in Q2 FY26. HBL Engineering Limited’s revenue and net profit have grown at a CAGR of 21.19 percent and 110.71 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE stand at 27.3 percent and 20.6 percent, respectively. HBL Engineering Limited has an earnings per share (EPS) of Rs. 23.1, and its debt-to-equity ratio is 0.04x.
Written By – Nikhil Naik
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