Kernex Microsystems India Ltd

Order details

• Awarding entity: Integral Coach Factory, Chennai (ICF).
• Scope: Supply, installation, testing and commissioning of On-board Kavach upgrade from v3.2 to v4.0, including hardware and software.
• Contract value: Rs. 31.87 crores, inclusive of GST.
• Entity is domestic.
• Timeline: to be completed on or before 31/03/2027.
• Significant terms: includes warranty and CAMC.
• Promoter group interest: none.
• Impact: may provide revenue visibility and order-book growth.

CLW-II order progress

• Total CLW-II order quantity: 3,024 units.
• Total CLW-II order quantity overall: 113,024 units.
• 1,360 units supplied during FY2025-26 up to 13 August 2026.
• Balance to be supplied: 111,664 units.
• 175 units completed; 1,025 units ~95% complete for Sep–Oct 2026.
• Target to complete remaining balance by Nov 2026; installation/commissioning by Feb 2027.

Warranty provisions

• Warranty period: four years from completion certificate; price includes warranty.
• Provision recognised under Ind AS 37; reviewed quarterly; reversals if no longer required.
• AMC revenue expected post-warranty: about 3% of capital cost annually for 11 years.

Diversification / new order

• Diversification into other verticals; new order secured worth approximately Rs 15.90 crore.

Re-appointment: Badari Narayana Raju Manthena (WTD)

• Re-appointed as Whole-Time Director for three years from 2 September 2026; term ends 1 September 2029.
• Senior executive; 25 years with the company; formerly Chief Administrative and Commercial Officer and WTD.
• No relationship with other directors.

Re-appointment: Sitarama Raju Manthena (WTD)

• Re-appointed as Whole-Time Director for three years from 2 September 2026; term ends 1 September 2029.
• Bachelor in Computer Science with Business Administration minor; 20+ years in international business development.
• Son of Dr. Anji Raju Manthena and Parvathi Manthena; brother of Ms. Sreelakshmi Manthena.
• Not debarred from holding the office of Director.

Financial highlights

• Consolidated revenue from operations: ₹50,358.23 lakh; total income: ₹50,406.74 lakh.
• Profit before tax: ₹14,813.71 lakh; tax: ₹3,829.14 lakh; PAT: ₹10,984.57 lakh.
• Basic EPS ₹65.37; diluted ₹65.37; quarter not annualised.
• Standalone revenue from operations: ₹50,203.27 lakh; total income: ₹50,251.15 lakh.
• Standalone PAT: ₹10,957.16 lakh; basic EPS ₹65.21.

Operational & corporate actions

• Outstanding consolidated order book ₹3,641 crore as on 13-Aug-2026; CLW major order with 45% supplies completed.
• JV with Bharat Heavy Engineering Private Limited formed on 07-03-2026; not commenced by 30-Jun-2026.
• Stock options: 1,200 equity shares allotted during quarter.
• Company operates with a single reportable segment; Ind AS 34 applied.

Audit & notes

• Unaudited results reviewed by Audit Committee; limited review by statutory auditors.
• Emphasis of Matter on recoverability of long-outstanding trade receivables ₹422.73 lakh with ECL ₹334.59 lakh and bank guarantees ₹265.03 lakh under arbitration.
• Auditors' report states conclusion not qualified in respect of these matters.

Board meeting details

• No agenda items disclosed in the provided filing chunk.

Resolutions (data not disclosed)

• No resolutions text available in the provided extract.

Reporting to stock exchanges

• Details of securities dematerialised/rematerialised during the quarter ended 30 June 2026 were furnished to all stock exchanges.

Order award details

• Awarding entity: Integral Coach Factory (ICF), Chennai, domestic.
• Nature and scope: Supply, installation, interfacing with electrics, testing and commissioning of on-board KAVACH equipment.
• Contract value: Rs 100.53 crores inclusive of GST.
• Execution period: To be completed on or before 31/03/2028.
• Domestic awarding entity; no promoter group interest; not a related-party transaction.
• Terms: Warranty and CAMC included; ROSO/RDSO specification version 4.0 or latest.
• Impact: Adds significant order to Kernex’s order book.
• Specification: ROSO/RDSO SPN196/2020, Version 4.0 or latest Trainset.

ESOP listing approval

• 1,200 equity shares of ₹10 each allotted under KMIL ESOS-2023.
• NSE and BSE approved listing on 6 July 2026; trading starts 7 July 2026.
• Distinctive numbers allocated: 16802423 to 16803622.
• Listed and admitted to dealings on NSE/BSE from 7 July 2026.

Kavach V4.0 commissioning on NCR

• Kernex Kavach Version 4.0 commissioned on 207 km Tundla–Panki Dham section of North Central Railway.
• 130 kmph on 207-km section; NCR Kavach coverage now 652 route km, Kernex handling 572 km.
• Kavach 4.0 demonstrated readiness to support 160 kmph on 175 route kilometres.
• Trial runs conducted on Kanpur Shatabdi Express and Sikkim Mahananda Express.
• System integrated with Hitachi Electronic Interlocking System without any operational issues.
• Project includes Kavach installations at 39 stations, and 10 WAP-7 locomotives commissioned.
• Over 4,600 RFID tags installed.
• 17 communication towers constructed; 48-core optical fibre cable laid; 30 dedicated equipment rooms established.
• Validation by ROSA, North Central Railway, and ISA (Italcertifier) completed.