January 16, 2026
Indian stock markets showed resilience on Friday, recovering from early volatility as news of ongoing trade talks between India and the US boosted investor sentiment.
At the time of writing, the BSE Sensex was trading 520 points higher than its previous close of 83,382, while the NSE Nifty was trading 154 points higher than its previous close of 25,665.
Despite the strong market, HBL Engineering stood out as one of the biggest losers of the day.
At the time of writing, the stock hit a low of Rs 757.7, down 14% from the previous closing price of Rs 878. The share price subsequently recovered to Rs 802.
What caused the sudden fall?
Missing Major Kavach locomotive tender
The sharp decline was due to a regulatory filing by the company, which revealed its failure to secure a major “Kavach” tender for locomotives from Chittaranjan Locomotive Works (CLW) for 6,300 units.
Management noted that rival bidders offered more competitive prices, leading to a downward revision in the company’s visible locomotive demand for the year from 18,429 units to 12,129 units.
This loss sparked immediate concerns over HBL’s market share in the fast-growing rail safety segment, leading to a sell-off despite the company’s optimistic revenue expectations for FY27.
The company clarified that its previous communication to the exchanges on December 18, 2025 covered only the Kavach locomotive business and not the Kavach station segment.
What next for HBL Engineering?
The company still maintains a FY27 Kavach sales projection of Rs 19 billion, of which Rs 10 billion from locomotive operations and Rs 0.9 billion from station projects.
While the company expects total revenue of Rs 18.8 billion for FY26.
To reduce dependence on individual major railway tenders, the company is focusing on niche, high-margin electronics, including electronic fuses, electric powertrains and the export market.
In electronic fuses, the company is investing heavily in research and development in electronic fuses, which it expects to be its second largest business contributor in FY30.
In terms of electric powertrains, there is a push towards e-mobility and electric drive systems for heavy trucks.
In terms of exports, HBL plans to take indigenous railway and defense electronics globally, targeting international markets where similar security and energy technologies are in demand.
How HBL Engineering’s share price has performed recently
Shares of HBL Engineering are down 21% since the start of 2026.
The stock touched its 52-week high of Rs 1,121.95 on November 10, 2025 and its 52-week low of Rs 404.3 on March 3, 2025.
About HBL Techniek
HBL Engineering is an Indian manufacturer of industrial batteries, power electronics and engineering products.
It has a strong presence in sectors such as railways, defence, telecom and UPS.
The company has preferred supplier status with Indian Railways and several metro rail operators, reflecting its strong technical expertise and long-term strategic partnerships. The products meet quality and safety standards, with an emphasis on longevity, interoperability and cost-effectiveness.
Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.
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