NSE: KERNEX · BSE: 532686
KERNEX MICROSYS(I) LTD
Builds and installs railway safety and automation systems, primarily the KAVACH train collision avoidance system for Indian Railways. Revenue comes from contracts with government railway entities such as Integral Coach Factory (ICF) and Chittaranjan Locomotive Works (CLW), covering supply, installation, testing, commissioning and warranty of on-board and track-side KAVACH equipment. The company has an order book of Rs 4,150 crores with around 30% execution completed, and FY26 revenue from operations was Rs 430.22 crore. Earnings calls and filings have flagged a new Rs 15.90 crore order from Jindal Steel for a Yard Safety Management and Automation System (Torpedo & Loco Tracking System), signalling a move into industrial yard automation using the same sensor and AI-based tracking technology. Major cost lines are materials at 91.8% of revenue, other operating expenses at 17.9% and employees at 7.5%, with depreciation at 1.4% and capex at 3.4% of revenue. The company's filings also note sharply negative operating cash flow in FY26 due to a large build-up of trade receivables (Rs 31,626 lakhs) and inventories (Rs 37,132 lakhs). AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Railway safety systems (KAVACH), Industrial yard automation. Project-based, order-book-driven railway safety systems vendor
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 7 | 4 | 20 | 190 | 430 |
| EBITDA (ex other income) | (14) | (17) | (21) | 41 | 149 |
| margin % | (208.4) | (423.7) | (105.9) | 21.5 | 34.6 |
| Owners' profit | (9) | (20) | (27) | 50 | 88 |
| EPS, as reported (₹) | (13.77) | (14.67) | (16.61) | 29.97 | 52.71 |
| ROE % · ROCE % | (35.6) · (27.5) | (24.4) · (22.3) | (25.2) · (22.7) | 31.8 · 24.3 | 35.7 · 54.4 |
| Debt / equity (x) | 0.37 | 0.13 | 0.26 | 0.26 | 0.66 |
| Cash from operations | (5) | (27) | (72) | 15 | (100) |
| Capex | (0) | (1) | (2) | (4) | (15) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 41 | 37 | 83 | 56 | 47 | 73 | 255 | 504 |
| Profit before tax | 7 | 7 | 15 | 10 | 9 | 6 | 92 | 148 |
| Net profit | 7 | 7 | 33 | 7 | 7 | 6 | 68 | 110 |
| EPS (₹) | 4.09 | 4.29 | 19.44 | 4.45 | 3.87 | 3.61 | 40.69 | 65.37 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| BLACKBUCK LIMITED | 10,357 | 61.5 | 7.28 | 45.6 | 11.3 | 11.4 | — | 32.3 |
| KERNEX MICROSYS(I) LTD ◆ | 2,709 | 14.2 | 10.95 | 19.0 | 35.7 | 43.9 | 88.0 | 32.4 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 14.2 | 15.2 | 29 of 66 | 57% |
| P/B | 10.9 | 1.4 | 54 of 58 | 7% |
| ROCE | 43.9 | 7.0 | 1 of 76 | 100% |
| ROE | 35.7 | 7.3 | 2 of 58 | 98% |
| Debt / Equity | 0.7 | 0.3 | 45 of 58 | 23% |
| EBITDA margin | 32.4 | 11.3 | 12 of 65 | 83% |
| Revenue growth | 800.4 | 12.8 | 1 of 62 | 100% |
| Profit growth | 1382.0 | 24.3 | 1 of 56 | 100% |
| Market cap | 2709 | 145 | 16 of 78 | 81% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 13 Oct 2026 · Kernex gets upgraded credit rating from CARE; long-term facilities enhanced | credit debt | medium | — | — |
| 12 Oct 2026 · Compliance certificate for Q2 FY26 under SEBI Reg 74(5) | compliance | minimal | — | — |
| 2 Oct 2026 · Revised 34th Annual Report FY2025-26 with Addendum filed post AGM | general | medium | — | — |
| 1 Oct 2026 · All 9 resolutions passed at 34th AGM; directors re-appointed | board shareholder meetings | low | — | — |
| 30 Sept 2026 · Kernex Microsystems 34th AGM held on 30 Sep 2026 - proceedings filed | board shareholder meetings | low | — | — |
| 25 Sept 2026 · Trading Window closure from Oct 1, 2026 pending Q2 results | compliance | minimal | — | — |
| 22 Sept 2026 · Addendum to FY25-26 Board Report - Independent Director changes | general | low | — | — |
| 9 Sept 2026 · Newspaper notice published for 34th AGM with e-voting and book closure details | compliance | minimal | — | — |
| 8 Sept 2026 · 34th AGM on 30 Sept 2026; Book Closure 24-30 Sept | board shareholder meetings | low | — | — |
| 8 Sept 2026 · 34th Annual Report for FY2025-26 filed; AGM on 30 September 2026 | results | high | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.