IRCON Bags ₹253.6 Crore KAVACH Contract from South Western Railway

21 May 2025 , 11:56 AM

IRCON International Ltd., a PSU under the Ministry of Railways has been awarded a big contract of ₹253.6 crore from South Western Railway. The contract is for executing KAVACH, an indigenous train collision avoidance system, in 778 route kilometers in the Bengaluru and Mysuru divisions.

The scope of works comprises survey, design, supply, installation, testing and commissioning of KAVACH equipment and any associated works. The project would be completed on a EPC (engineering, procurement, construction) basis within 18 months from the date of issue of LoA.

KAVACH is an automatic train protection system for Indian Railways developed as part of Make-in-India to prevent train accidents and improve safety. This project further strengthens the positioning of IRCON as an important infrastructure player in the railway modernization of India.”

IRCON managed to bag this crucial order even as the company announced a 3.8% year-over-year fall in net profit to the fourth quarter of March 31, 2024. Net profit for March quarter was at ₹246.8 crore against ₹256.5 crore in the same period of last fiscal. Revenue from operations was down also by 1% year-on-year to ₹3,742.7 crore as compared to ₹3,780.7 crore in Q4 FY23.

On the operational front, the company’s EBITDA plunged 56.3% YoY to ₹286.3 crore against ₹656 crore in the same quarter last year. However, the EBITDA margin expanded to 7.7% in the reporting quarter from 4.9% of the comparative period of the last year, indicating improved cost efficiencies. IRCON is focused on taking up value added projects and making use of in-house engineering and technology to meet the demands of railways and construction company.