Hirect Limited (NSE:HIRECT) has secured its first development order for Vande Metro (Namo Bharat) trainsets from Rail Coach Factory, Kapurthala, announced on 27 July 2026. The order, valued at approximately Rs 60 crores, involves design, development, manufacture, supply, installation, testing and commissioning of IGBT-based 3-phase propulsion systems and related equipment, with a 21-month execution timeline and comprehensive annual maintenance contract.
Key Highlights
- Hirect secured first Vande Metro development order from Rail Coach Factory, Kapurthala, valued at approximately Rs 60 crores.
- Order covers design, development, manufacture, supply, installation, testing and commissioning of IGBT-based 3-phase propulsion systems, traction transformers, traction motors and train control and management systems.
- Execution timeline spans 21 months with comprehensive annual maintenance contract included in the order scope.
- Vande Metro is a self-propelled, fully air-conditioned 16-coach trainset designed for intercity routes up to 250 km with operational speeds up to 130 kmph.
- The order demonstrates Hirect's indigenous R&D capabilities and marks expansion into advanced railway propulsion and trainset applications beyond traditional traction transformers.
- Hirect operates two manufacturing plants at Nashik and Bhandup with a workforce of 950 employees and exports to over 30 countries.
About the Company
Hirect Limited, formerly known as Hind Rectifiers Limited and established in 1958 in partnership with Westinghouse, Brake & Signal, UK, is a major player in power electronics engineering and manufacturing for railways, defence and industrial applications. The company operates two manufacturing plants at Nashik and Bhandup in India with a workforce of 950 employees. Hirect designs and manufactures power converters, control electronics, transformers, rectifiers, inverters, motors and HVAC systems serving railways, defence, power, hydrogen, steel, cement, chemical and paper sectors. The company exports to over 30 countries and maintains offices in India, Sweden and the UAE. Listed on NSE (NSE:HIRECT), the company is recognised for quality and innovation in industrial and transportation applications.
Announcement in Detail
Hirect Limited announced on 27 July 2026 that it has secured its first development order for Vande Metro (Namo Bharat) trainsets from Rail Coach Factory, Kapurthala. The order is valued at approximately Rs 60 crores and marks a significant expansion of the company's portfolio into advanced railway propulsion technologies. Vande Metro trainsets are self-propelled, fully air-conditioned 16-coach configurations designed for intercity routes up to 250 km with operational speeds reaching 130 kmph.
The scope of work includes design, development, manufacture, supply, installation, testing and commissioning of an IGBT-based 3-phase propulsion system, traction transformers, traction motors, TCMS (Train Control and Management System) and other associated equipment. The order encompasses a comprehensive annual maintenance contract for the entire system. The execution period is estimated at 21 months from order placement. According to the press release, this order will enable Hirect to demonstrate performance and reliability of its indigenously developed propulsion solutions on one of Indian Railways' advanced train platforms.
Chairman & Managing Director Suramya Nevatia stated that the order validates the company's continued investments in indigenous R&D capabilities and represents expansion into advanced propulsion and trainset applications. He noted that building on the company's foundation in traction transformers and railway electrification solutions, Hirect is expanding its technology footprint as Indian Railways accelerates adoption of next-generation mobility solutions.
Impact on Investors
The Vande Metro development order represents a material expansion of Hirect's addressable market within Indian Railways' capital expenditure on next-generation rolling stock. With an order value of Rs 60 crores and a 21-month execution timeline, this contract will contribute meaningfully to revenue recognition over the coming period. The inclusion of a comprehensive annual maintenance contract provides recurring revenue visibility extending beyond the initial development and delivery phases, enhancing revenue stability and customer lifetime value metrics for investors.
Investors will note that this order validates Hirect's technical capabilities in IGBT-based propulsion systems and train control management, areas that represent higher technology complexity and potentially higher margin products than traditional traction transformers. The successful execution of this project, particularly the demonstration of indigenously developed propulsion solutions on advanced railway platforms, could establish credibility for securing similar orders from Rail Coach Factory and other rolling stock manufacturers. However, investors should note the 21-month execution timeline means revenue and profitability contribution will be spread over multiple financial periods, requiring careful tracking of project milestones and cash collection patterns in quarterly results.
Sector / Market Context
Indian Railways has undertaken significant modernisation initiatives to upgrade rolling stock and improve intercity connectivity. The Vande Bharat (Vande Metro) trainset programme is part of this strategic shift toward self-propelled, energy-efficient trainsets designed for faster, more comfortable intercity travel. According to publicly available information on Indian Railways' capital plans, the railway sector is increasing capital expenditure on rolling stock and infrastructure, creating opportunities for domestic component suppliers and system integrators in propulsion, control systems and railway electrification.
The focus on indigenous design and development of propulsion systems aligns with Indian Railways' broader objective to reduce import dependence and build domestic technological capability in advanced railway technologies. This policy environment supports opportunities for companies like Hirect that have established capabilities in power electronics and railway-specific applications. The integration of IGBT-based power electronics, traction transformers and train control management systems within a single Vande Metro platform represents a significant capability demonstration that could open pathways for broader participation in future rolling stock development contracts.