Yes, the large Kavach contracts have materially boosted HBL Engineering’s 5-year CAGR by significantly increasing its revenue visibility and order backlog.

HBL Engineering secured a series of high-value Kavach orders in 2024-2025 totaling over ₹3,700 crore from various Indian Railway zones. These contracts cover the deployment and upgrade of the Kavach automatic train protection system across thousands of kilometers and hundreds of stations, effectively doubling the company’s FY24 revenue in order book size to over ₹40 billion.

The Kavach contracts have provided HBL with strong revenue visibility for the next few years, underpinning the company’s growth trajectory. The system’s key role in Indian Railways’ modernization strategy has positioned HBL as a trusted technology provider, resulting in repeat large-scale orders and boosting profitability—net profit jumped 79% year-on-year in recent quarters even while overall industrial battery revenues remained flat.

Hence, the robust inflow and execution of Kavach-related contracts have been a major contributor to HBL’s exceptional share price growth and 5-year CAGR outperformance in the battery and railway electronics sector.