Kernex Microsystems (India) Limited (KERNEX)
₹1,772.50 +3.18% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Kernex Microsystems' revenue was ₹255 Cr (+207.0% year on year, +251.3% on the previous quarter), and net profit ₹68.0 Cr (+109.0% year on year); the operating margin was 41.2%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹255 | +207.0% | +251.3% |
| Operating profit | ₹105 | +513.3% | +525.1% |
| Net profit | ₹68.0 | +109.0% | — |
| EPS (₹) | 40.63 | +109.0% | — |
| Operating margin | 41.2% | — | — |
KERNEX delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 36.57% of the KERNEX shares traded on NSE were taken to delivery, against the stock's own 20-session average of 43.09%. The price rose 3.18% on unusually low delivery, so more of the move than usual was intraday trading.
Delivery in the last 5 sessions: 45.9% · 42.7% · 48.5% · 51.5% · 36.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CARE Ratings has upgraded Kernex Microsystems' credit ratings, reflecting improved financial and operational standing. Long-term bank facilities have been upgraded to CARE BBB; Stable from CARE BBB-; Stable, while short-term ratings moved to CARE A3+ from CARE A3. In addition, total rated bank facilities increased substantially to ₹660 Cr (up from ₹275 Cr), providing headroom to support larger order execution.
- Long-term facilities upgraded to CARE BBB; Stable from CARE BBB-; Stable
- Short-term facilities upgraded to CARE A3+ from CARE A3
- Total rated bank facilities scaled to ₹660 Cr from ₹275 Cr
- Long-term bank facilities significantly enhanced to ₹525.00 Cr from ₹175.00 Cr
- Long-term / Short-term facilities enhanced to ₹125.00 Cr from ₹100.00 Cr, plus ₹10.00 Cr standalone facility assigned
Kernex Microsystems (India) Limited has scheduled its 34th Annual General Meeting (AGM) for Wednesday, September 30, 2026, at 11:00 AM IST via video conferencing. The cut-off date to determine shareholder eligibility for voting is set as September 23, 2026. The company's Register of Members and Share Transfer Books will be closed from September 24 to September 30, 2026.
- 34th Annual General Meeting scheduled for September 30, 2026 at 11:00 AM IST
- Cut-off date for AGM voting eligibility is September 23, 2026
- Book closure period runs from September 24, 2026 to September 30, 2026
Kernex Microsystems has issued the notice for its 34th Annual General Meeting scheduled for September 30, 2026, via Video Conferencing. Key agenda items include adopting the FY26 audited financial statements and ratifying cost auditor remuneration of Rs 1,50,000. Additionally, the company seeks shareholder approval for the re-appointment of Whole-Time Director Mr. Badari Narayana Raju Manthena for three years with remuneration ranging between Rs 12.50 lakh to Rs 22.00 lakh per month.
- 34th AGM scheduled for September 30, 2026, at 11:00 AM IST via Video Conference
- Approval sought for FY26 standalone and consolidated audited financial statements
- Proposed re-appointment of Whole-Time Director Mr. Badari Narayana Raju Manthena for 3 years w.e.f. September 2, 2026
- Remuneration proposed for Mr. Badari Narayana Raju Manthena between Rs 12,50,000 and Rs 22,00,000 per month
- Ratification of Rs 1,50,000 annual remuneration for Cost Auditors M/s. M P R & Associates
Kernex Microsystems has reconstituted its board with the appointment of three new Independent Directors subject to shareholder approval. Mrs. C Renuka Rani has been appointed from September 6, 2026, to September 30, 2028, and Mr. A Seshagiri Rao for a 5-year term starting September 6, 2026. Mr. P Dinakara Rao has been appointed effective September 30, 2026, while Mr. A V Sarma ceased to be an Independent Director on September 5, 2026, following the completion of his 2-year tenure.
- Appointment of Mr. A Seshagiri Rao (aged 65, 35+ years banking experience) as Independent Director for 5 years w.e.f. September 6, 2026
- Appointment of Mrs. C Renuka Rani (25+ years corporate legal experience) as Independent Director from September 6, 2026, to September 30, 2028
- Appointment of Mr. P Dinakara Rao (aged 81, former CGM State Bank of Hyderabad) w.e.f. September 30, 2026
- Cessation of Mr. A V Sarma as Independent Director on September 5, 2026, upon completion of his 2-year term
Kernex Microsystems has announced the appointment of three Independent Directors and the cessation of one Director following the completion of his term. Mrs. C Renuka Rani has been appointed as Additional Independent Director from September 6, 2026, to September 30, 2028. Additionally, Mr. A Seshagiri Rao and Mr. P Dinakara Rao have been appointed as Independent Directors, while Mr. A V Sarma ceased to be an Independent Director on September 5, 2026, upon finishing his 2-year tenure. All new appointments remain subject to shareholder approval.
- Appointment of Mrs. C Renuka Rani as Additional Independent Director effective September 6, 2026, to September 30, 2028
- Appointment of Mr. A Seshagiri Rao as Independent Director for a 5-year term starting September 6, 2026
- Appointment of Mr. P Dinakara Rao as Independent Director starting September 30, 2026
- Cessation of Mr. A V Sarma as Independent Director on September 5, 2026, upon completing his 2-year consecutive term
Kernex Microsystems released its Q1 FY27 investor presentation, detailing a robust unexecuted order book of ₹3,487 Crore (against total orders received of ₹5,174 Crore). Standalone Q1 FY27 revenue stood at ₹502.03 Crore with a PAT of ₹109.57 Crore, already surpassing total revenue for the entirety of FY26 (₹425.81 Crore). Total bank working capital facilities expanded to ₹655 Crore (₹490 Crore sanctioned and ₹165 Crore in process) with ₹281 Crore undrawn headroom to support project execution.
- Unexecuted order book stands at ₹3,487 Cr (split: ₹2,599 Cr on-board Kavach and ₹888 Cr EPC trackside)
- Q1 FY27 standalone revenue reached ₹502.03 Cr with PAT of ₹109.57 Cr and basic EPS of ₹65.21
- Total working capital limits scaled 25.8x from FY23 to ₹655 Cr (including ₹165 Cr under sanction)
- Annual production capacity stands at 6,000 Loco Kavach units, 1,000 Station Kavach units, and 500 RIU units
- Indian Railways pipeline projected at 41,000 RKM across FY27-FY29 with an addressable target of 81,000 RKM
Kernex Microsystems has secured an order worth ₹31.87 crore (inclusive of GST) from the Integral Coach Factory (ICF), Chennai. The contract entails the supply, installation, testing, and commissioning of On-board KAVACH systems by upgrading from version 3.2 to version 4.0 as per RDSO specifications, along with warranty and CAMC. The order represents approximately 7.4% of the company's TTM revenue of ₹431 crore and is slated for completion on or before March 31, 2027.
- Order value of ₹31.87 Crores (inclusive of GST) awarded by Integral Coach Factory, Chennai
- Scope includes supply, installation, testing, and commissioning of On-board KAVACH upgrade from version 3.2 to 4.0
- Execution timeline set on or before March 31, 2027
- Order magnitude represents ~7.4% of FY26 TTM revenue (₹431 Cr)
Kernex Microsystems provided an operational update on its flagship CLW-II order of 3,024 units. As of 13 August 2026, 1,360 units have been supplied, leaving a balance of 1,664 units. The company has 175 units ready for August dispatch, 1,025 units (95% complete) scheduled across September and October (minimum 500 units/month), and targets full dispatch by November 2026. Final installation and commissioning are slated for completion by 5 February 2027, followed by a 4-year warranty and expected 11-year AMC revenue at ~3% of capital cost per annum.
- Supplied 1,360 units out of 3,024 total units under the CLW-II order up to 13 August 2026
- Balance 1,664 units to be fully dispatched by November 2026, with >=500 units/month planned for Sep and Oct 2026
- Installation and commissioning target set for completion by 5 February 2027
- Post 4-year warranty, company expects 11-year AMC revenue at ~3% of capital cost per annum
- Diversification vertical secured an order worth approximately Rs 15.90 crore
Kernex Microsystems has approved the re-appointment of Mr. Badari Narayana Raju Manthena and Mr. M Sitarama Raju as Whole-Time Directors for a three-year term effective September 2, 2026. Mr. Badari has 25 years of experience within the company, focusing on administration and government liaison, while Mr. Sitarama Raju brings over 20 years of international business expertise. These appointments ensure leadership continuity as the company manages its significant growth phase, with TTM revenue reaching Rs 431 Cr driven by KAVACH railway safety orders. The board also approved the Q1 FY27 financial results during the same meeting.
- Re-appointment of two Whole-Time Directors for a fixed term of 3 years each.
- Mr. Badari Narayana Raju Manthena has 25 years of tenure at the company in senior positions.
- Mr. M Sitarama Raju brings over 20 years of experience in international business development.
- New terms commence on September 2, 2026, following the expiry of current terms on September 1, 2026.
- Leadership remains stable during a period where TTM PAT has reached Rs 88 Cr.
Kernex Microsystems has approved the re-appointment of Mr. Badari Narayana Raju Manthena and Mr. Sitarama Raju Manthena as Whole-Time Directors for three-year terms effective September 2, 2026. Mr. Badari Narayana Raju Manthena brings 25 years of experience in administration and government liaison, while Mr. Sitarama Raju Manthena focuses on international business development. These re-appointments ensure leadership continuity as the company executes its KAVACH (Train Collision Avoidance System) orders, following a significant revenue jump to ₹431 cr in FY26 from ₹190 cr in FY25.
- Re-appointment of 2 Whole-Time Directors for a further period of 3 years each.
- New terms are effective from September 2, 2026, following the expiry of current terms on September 1, 2026.
- Mr. Badari Narayana Raju Manthena has been with the company for 25 years in senior positions.
- Company maintains a production capacity of 450 Kavach units per month to service Indian Railways.
Kernex reported a massive surge in Q1 FY27 performance, with consolidated revenue reaching Rs 503.58 Cr, an 800% increase compared to Rs 55.93 Cr in Q1 FY26. Net profit for the single quarter jumped to Rs 109.85 Cr, which already exceeds the total PAT of Rs 88 Cr for the entire FY26. The company maintains a robust order book of Rs 3,641 Cr, providing high revenue visibility as it represents approximately 8.4x its TTM revenue. Execution of the major CLW order is progressing well, with 45% completion reported as of August 2026.
- Consolidated revenue for Q1 FY27 stood at Rs 503.58 Cr, up from Rs 55.93 Cr in the same quarter last year.
- Net profit reached Rs 109.85 Cr for the quarter, resulting in a Basic EPS of Rs 65.37.
- Outstanding order book stands at Rs 3,641 Cr (including GST), which is ~845% of the TTM revenue.
- Completed 45% of the major CLW order execution as of August 13, 2026.
- Recognized a significant warranty provision of Rs 30.05 Cr for KAVACH and signaling systems during the quarter.
Kernex Microsystems has secured a domestic order valued at ₹66.62 crore (including GST) from the Integral Coach Factory (ICF), Chennai. The contract involves the supply, installation, and commissioning of on-board KAVACH equipment for EMU/MEMU trains. This order represents approximately 15.5% of the company's TTM revenue of ₹431 crore, providing significant revenue visibility through early 2028. The project must be completed by March 31, 2028, and includes warranty and Comprehensive Annual Maintenance Contract (CAMC) services.
- Order value of ₹66.62 Crores including GST from Integral Coach Factory, Chennai.
- Execution timeline requires completion on or before March 31, 2028.
- Order size represents ~15.5% of the company's TTM revenue of ₹431 Crores.
- Scope covers supply, installation, and interfacing of KAVACH Version 4.0 for EMU/MEMU trains.
- Includes long-term components such as Warranty and Comprehensive Annual Maintenance Contract (CAMC).
Kernex Microsystems has received shareholder approval for seven key resolutions via postal ballot as of July 29, 2026. Most notably, the company secured approval to increase its borrowing powers and create charges on assets, providing the financial flexibility needed to support its scaling KAVACH operations. Shareholders also ratified salary increases for the Managing Director and two Whole-time Directors, alongside the appointment of a new director and a related party transaction for a General Manager role. These moves follow a massive revenue jump to ₹431 Cr in FY26 from just ₹19 Cr in FY24.
- 7 resolutions passed by members with requisite majority on July 29, 2026
- Approval granted for increasing the borrowing powers of the Board of Directors beyond existing limits
- Managerial remuneration increased for MD Sreelakshmi Manthena and two Whole-time Directors
- Appointment of Mrs. Parvathi Manthena as a Director of the company approved
- Related Party Transaction approved for Mr. Alluri Sitarama Raju Manthena as GM (Operations)
Kernex Microsystems has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the period ended June 30, 2026. The certificate, issued by KFin Technologies Limited (the Registrar and Transfer Agent), confirms that share certificates received for dematerialization were processed and the names of depositories were updated in the company's records. This is a standard administrative filing required for all listed entities to ensure the integrity of electronic shareholding. It has no bearing on the company's operational performance or financial health.
- Compliance certificate issued for the quarter ended June 30, 2026
- Registrar and Transfer Agent (RTA) confirmed as KFin Technologies Limited
- RTA certificate dated July 1, 2026, and submitted to exchanges on July 14, 2026
- Confirms compliance with SEBI (Depositories and Participants) Regulations, 2018
Kernex Microsystems has secured a domestic contract worth Rs 100.53 crore from Integral Coach Factory (ICF), Chennai. The order involves the supply, installation, and commissioning of on-board KAVACH (Train Collision Avoidance System) equipment for trainsets. This contract represents approximately 23.3% of the company's TTM revenue of Rs 431 crore, providing significant revenue visibility. The project is slated for completion by March 31, 2028.
- Order valued at Rs 100.53 crore including GST from Integral Coach Factory, Chennai.
- Execution timeline set for completion on or before March 31, 2028.
- Scope includes supply, installation, testing, and commissioning of KAVACH equipment as per RDSO Specification 4.0.
- Order value represents approximately 23.3% of the company's TTM revenue of Rs 431 crore.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment (Railway Safety Systems). Revenue grew significantly to INR 189.88 Cr in FY25 from INR 18 Cr in FY21, representing a turnaround driven by the execution of KAVACH (TCAS) orders.
Geographic Revenue Split
Primarily India-based revenue (approx. 99%+) from Indian Railways contracts. The company maintains a wholly-owned subsidiary, Avant-Garde Infosystems Inc, in the USA, though its current revenue contribution is negligible.
Profitability Margins
Operating profit margin stood at 21.55% in FY25. Net profit for FY25 was INR 50.92 Cr, a significant recovery from a net loss of INR 20.41 Cr in FY24, aided by a deferred tax credit of INR 17.54 Cr.
EBITDA Margin
Operating Profit before working capital changes was INR 49.27 Cr in FY25 (approx. 26% margin) compared to a loss of INR 12.24 Cr in FY24, reflecting improved absorption of fixed overheads.
Capital Expenditure
Capital expenditure for FY25 was INR 4.13 Cr, primarily for property, plant, and equipment to support manufacturing scaling.
Credit Rating & Borrowing
CARE Ratings assigned a 'CARE BBB-; Stable' rating for long-term bank facilities (INR 175 Cr) and 'CARE A3' for short-term facilities (INR 100 Cr) in November 2025.
Operational Drivers
Raw Materials
Electronic components, PCB assemblies, sensors, and communication modules for TCAS units, representing approximately 60-70% of total project execution costs.
Import Sources
Not disclosed in available documents, though high-end electronic components are typically sourced from global semiconductor hubs.
Capacity Expansion
Current production capacity is 450 Kavach Units per month and 10 Level Crossing Gates per month (scalable to 25 units per month). The facility spans a 10-acre campus with 265,000 sq. ft. of infrastructure.
Raw Material Costs
Project execution expenses rose to INR 22.47 Cr in FY25 from INR 5.92 Cr in FY24 (up 280%) as project delivery accelerated.
Manufacturing Efficiency
Turnaround in FY25 indicates high capacity utilization compared to previous years where high fixed overheads led to losses.
Strategic Growth
Growth Strategy
Growth is driven by the mandatory implementation of KAVACH (Train Collision Avoidance System) by Indian Railways. Strategy involves leveraging its position as one of only three RDSO-approved vendors and utilizing its 450 units/month capacity to capture a large share of the national rollout.
Products & Services
KAVACH (TCAS) units, Level Crossing Gates, Railway Safety Systems design, and Turnkey Project Execution.
Brand Portfolio
Kernex, KAVACH (patented technology).
New Products/Services
Expansion into Telecom and Defense sectors using embedded and IoT product design services.
Market Expansion
Targeting pan-India railway networks for KAVACH installation and maintenance.
Market Share & Ranking
One of the top 3 players in the Indian Railway safety (KAVACH) market.
Strategic Alliances
Kernex TCAS JV (80% share), VRRC KERNEX CE RVR JV (35% share), and KERNEX VRRC JV (80% share).
External Factors
Industry Trends
The industry is shifting toward mandatory automated safety systems (KAVACH) across the entire Indian Railway network, moving away from manual signaling.
Competitive Landscape
Limited competition with only two other major players (HBL Power and Medha Servo) approved for KAVACH technology.
Competitive Moat
Sustainable moat through patented technology and the 'RDSO Approved' status, which acts as a massive entry barrier due to the multi-year testing and validation process required.
Macro Economic Sensitivity
Highly sensitive to Indian Government/Railway budgetary allocations for safety infrastructure.
Geopolitical Risks
Trade barriers on electronic components could impact input costs for TCAS manufacturing.
Regulatory & Governance
Industry Regulations
Strict adherence to Research Designs and Standards Organisation (RDSO) specifications and SIL-4 (Safety Integrity Level) standards is mandatory for all products.
Taxation Policy Impact
Effective tax benefit in FY25 due to deferred tax credit of INR 17.54 Cr.
Legal Contingencies
Pending income tax disputes at the Commissioner (Appeals) level for AY 2019-20 (INR 0.92 Cr) and AY 2020-21 (INR 3.92 Cr). Statutory auditors qualified their report regarding non-recognition of impairment loss of INR 12.76 Cr for the US subsidiary.
Risk Analysis
Key Uncertainties
Internal control weaknesses noted in discrepancies between bank statements and books (up to INR 29.77 Cr difference with HDFC Bank in Q1 FY25).
Geographic Concentration Risk
Over 95% of revenue is concentrated in the Indian market, specifically with the Ministry of Railways.
Third Party Dependencies
High dependency on RDSO for product approvals and project timelines.
Technology Obsolescence Risk
Risk of technology shifts in railway signaling; mitigated by continuous R&D in TCAS/KAVACH.
Credit & Counterparty Risk
Receivables from government entities (Railways) are generally secure but subject to long working capital cycles; trade receivables increased to INR 14.44 Cr in FY25.
