Kernex Microsystems shares were in demand on Friday, January 16, 2026, rising as much as about 13% intraday to around Rs. 1,420 levels, before cooling off; by around mid-morning the stock was still trading in the green while the broader market was also firm. The buying interest followed the company’s disclosure that it has secured a Rs. 2,465.71 crore order from Chittaranjan Locomotive Works (CLW).

In its regulatory intimation, Kernex said CLW has awarded the contract for the supply, installation, testing and commissioning of 3,024 sets of on-board KAVACH locomotive equipment, to be executed as per RDSO Specification No. RDSO/SPN/196/2020 (Version 4.0 or latest applicable version). The order is significant in the context of Indian Railways’ ongoing safety modernisation, as KAVACH is the indigenous Automatic Train Protection (ATP) system that helps enforce speed limits and can apply brakes automatically to reduce accident risks, with Version 4.0 representing the next milestone in rollout.

This is a 12-month execution order, so the implied revenue “run-rate potential” is high if the company can scale installations smoothly. The stock move is essentially the market repricing (a) step-up in revenue visibility and (b) improved confidence that KAVACH 4.0 is entering faster rollout.

Kernex Microsystems is a railway-focused electronic systems company established in 1991 and registered as a 100% Export Oriented Unit (EOU), with capabilities spanning concept/design, validation, manufacture, evaluation, installation and maintenance support on a turnkey basis. The company’s portfolio includes railway safety and automation offerings such as LxGuard, TrainSHIELD, SAFELx, SENTINEX, CASRY and KMDAX, and it also provides value-added services including embedded R&D and electronics manufacturing services (EMS/CEM), alongside systems integration for rail applications.