HBL Engineering, formerly HBL Power Systems, has a strong long-term growth story because of its exposure to railway safety, defence, aviation and specialised battery technologies, although Q1 FY27 earnings showed some margin pressure. In Q1 FY27, consolidated revenue increased 6% YoY to ₹638 crore, while net profit declined about 24% YoY to ₹109 crore and EBITDA margin contracted to around 26.2%, mainly due to weaker profitability in the Defence & Aviation Batteries and Electronics segments. The biggest positive trigger remains the company's Kavach railway-safety business. HBL received a ₹575 crore order from Integral Coach Factory for supply, testing and commissioning of On-Board Kavach Version 4.0, to be executed within 12 months, strengthening revenue visibility from India's railway-safety modernisation programme. The company has subsequently continued receiving additional Kavach orders, including a ₹24 crore ICF order in July 2026, with execution scheduled through March 2028.

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