Kernex Microsystems Issues Operational Update on ₹15.90 Cr Diversification Order and CLW-II Execution

Kernex Microsystems (India) Limited has released a detailed operational and performance update covering its execution roadmap for Chittaranjan Locomotive Works (CLW), warranty provisioning and progress on its business diversification efforts.

CLW-II Order Execution Status

The company is executing a total order of 3,024 units received from Chittaranjan Locomotive Works (CLW) under the CLW-II contract.

Total Order Quantity: 3,024 units

Supplied (FY 2025-26 up to August 13, 2026): 1,360 units

Balance Quantity to be Supplied: 1,664 units

Kernex provided a phased dispatch timeline for the remaining 1,664 units:

175 units: Completed and currently undergoing pre-dispatch processing; expected to be dispatched during August 2026.

1,025 units: Approximately 95% complete; planned for dispatch across September and October 2026 (minimum 500 units per month).

Balance units: Under various stages of production; targeted for complete dispatch by November 2026.

Following full dispatch in November 2026, the company will have until February 5, 2027, to complete the remaining installation and commissioning formalities.

Warranty Provisioning and Long-Term AMC Potential

Under the terms of the CLW contract, Kernex is required to provide a 4-year warranty from the date of issue of the completion certificate.

Because the contract price is inclusive of warranty obligations with no separate consideration payable, the company recognizes a warranty provision based on estimated costs under Ind AS 37 (Provisions, Contingent Liabilities and Contingent Assets).

The provision is reviewed quarterly and annually, with unrequired amounts reversed or written back as appropriate.

Upon completion of the 4-year warranty period, Kernex expects to generate Annual Maintenance Contract (AMC) revenue at approximately 3% of the capital cost per annum for a period of 11 years, subject to contractual terms.

Business Diversification

Kernex highlighted its active push into non-railway/new business verticals, referencing a key diversification order worth approximately ₹15.90 crore secured earlier (previously disclosed on May 28, 2026).

Shares of Kernex Microsystems (India) Limited was last trading in BSE at Rs. 1759.30 as compared to the previous close of Rs. 2024.30. The total number of shares traded during the day was 123928 in over 7176 trades.

The stock hit an intraday high of Rs. 2040.85 and intraday low of 1712.00. The net turnover during the day was Rs. 229932235.00.

Source : Equity Bulls

Keywords

KernexMicrosystemsIndia INE202H01019 OperationalUpdate CLWOrder