The Principal Chief Materials Management office, Patiala, has awarded a contract to Kernex Microsystems (India) Limited for the supply, installation, testing and commissioning of on-board KAVACH loco equipment. The contract is valued at Rs 675.3 million (mn) inclusive of goods and services tax. The equipment will be supplied in accordance with Research Designs and Standards Organisation (RDSO) specification RDSO/SPN/196/2020, version four point zero or latest. The order covers full turnkey delivery and on-site commissioning across designated railway workshops.

The company stated that the order is domestic and is to be executed on or before 15/04/2027. The award is expected to strengthen the company's presence in the rail signalling and safety segment and to support ongoing deployment of KAVACH technology. Project execution will involve coordination with multiple railway departments and adherence to prescribed quality and testing protocols. The timeline reflects the scope of supply and onsite integration activities.

The disclosure has been made to the stock exchanges in line with Securities and Exchange Board of India listing obligations and circulars issued in November and December 2024. The company indicated that there is no interest of promoters or group companies in the entity that awarded the contract and that the order does not constitute a related party transaction. Governance and compliance processes will be followed during contract execution and invoicing. The company secretary lodged the filing for record.

The contract is material for the company's revenue mix and is expected to support manufacturing and service capabilities through the contract period. Delivery and commissioning activities are likely to create opportunities for local suppliers and skilled manpower engagement. The company will report progress in subsequent regulatory filings and financial disclosures. Stakeholders will be kept informed of material developments.