HBL Engineering Shares Slide Nearly 10 Percent as Kavach Loco Tender Miss Weighs on Near-Term Outlook

Hyderabad, January 16, 2026: HBL Engineering Limited (BSE: 517271 | NSE: HBLENGINE) shares witnessed sharp selling pressure in Friday’s early trade, extending losses after the company updated stakeholders on the outlook of its Kavach business following the outcome of a major locomotive tender.
The stock was trading at ₹792, down ₹86.25 or 9.82 percent from the previous close of ₹878.25 as of 10:03 am IST, reflecting investor concerns over reduced visibility in the locomotive segment of the Kavach programme.

Stock Performance Snapshot (Intraday)​

The order book showed higher sell-side pressure, with sell quantity exceeding buy quantity during the session, indicating cautious sentiment among market participants.

Kavach Business Update Drives Sentiment​

HBL Engineering informed stakeholders that it did not secure any orders in the recently decided CLW locomotive Kavach tender for 6,300 units, as competing bids were quoted at lower prices. Following this, the total visible demand for Kavach locomotive units has reduced from 18,429 units to 12,129 units.
Despite the setback in the locomotive segment, the company continues to maintain revenue visibility from the remaining demand. HBL expects to generate at least ₹1,000 crore from Kavach locomotive units during FY27, with execution extending into FY28.

Station Segment Provides Revenue Cushion​

The company clarified that its earlier communication focused only on the locomotive segment and did not factor in the station-side Kavach business, which remains strong.
HBL currently has confirmed station Kavach orders, with around ₹900 crore planned to be invoiced during FY27 and an additional ₹400 crore expected in FY28. The company also indicated that more station-related tenders are likely during FY27, with some deliveries expected within the same financial year.

Estimated Kavach Revenue Visibility​

For perspective, HBL expects total Kavach sales of around ₹1,880 crore in FY26, underscoring the scale of the programme despite near-term volatility in tender outcomes.