The proposed venture will focus on building a Moving Block System integrated with Automatic Train Supervision (ATS) and Automatic Train Operation (ATO) on the Kavach platform along with Centralized Traffic Control (CTC) systems.

Under the proposed structure, Kernex will hold a 51% stake while Bharat Heavy Engineering will hold 49%, with flexibility to adjust the shareholding depending on project scope.

Kernex Microsystems (India) is engaged in the manufacture and sale of safety systems and software services for railways.

The company had reported 15.88% fall in consolidated net profit to Rs 6.04 crore despite a 97.23% increase in revenue to Rs 72.60 crore in Q3 FY26 as compared with Q3 FY25.

The scrip was currently down 5.80%, trading at Rs 975.25 apiece on the BSE.