Railway stocks like RailTel, BEML, and RITES gained traction in 2025, supported by fresh government orders, strong order books, and FY26 capex expectations. Economic growth and infrastructure momentum further boosted investor confidence in these PSU railway companies.
Railway stocks witnessed a surge in investor interest in the first week of June, driven by fresh government orders and expectations of increased capital expenditure in FY26.
Railway companies like BEML, Container Corporation of India, IRCON International, IRFC, IRCTC, RVNL, RailTel Corporation of India, RITES, Texmaco Rail & Engineering and Titagarh Rail Systems Limited have been in strong action since last week, reflecting optimism around government-led infrastructure growth.
The broader economic backdrop, highlighted by a Q4 GDP growth of 7.4%, further fueled confidence, with analysts pointing to strong public capex and steady capital formation as key contributors. Anticipation of continued capex push is likely to support the uptrend in railway stocks.
Company Name | Stock Price (₹) | Recent % Change | YTD Return (%) | Order Book (₹ Crore) |
RailTel Corporation of India | 454.95 | 2.92% | 12.95% | 6,616 |
BEML Limited | 4,401.60 | 0.64% | 7.63% | 10,377 |
RITES Limited | 310.15 | 4.94% | 6.25% | 8,877 |
Data as of June 5, 2025, 12:47 pm IST.
Among the top performers is RailTel Corporation of India, a Navratna PSU established in 2000 to modernise the telecom and safety systems of Indian Railways. RailTel provides nationwide broadband and VPN services, with its network covering around 6,000 railway stations across the country. As of June 5, 2025, the stock is trading at ₹454.95, up 2.92% recently and delivering a year-to-date return of 12.95%. Its current order book stands at ₹6,616 crore, reflecting strong operational momentum.
BEML Limited has also maintained a steady performance. The company manufactures heavy earthmoving equipment for the mining and construction industries, metro coaches, and vehicles for defence and railway sectors. With a stock price of ₹4,401.60 and a modest gain of 0.64% on Thursday, BEML has delivered a 7.63% return so far in 2025. Its healthy order book of ₹10,377 crore underlines sustained demand across its key business segments.
Another notable performer is RITES Limited, a leading transport consultancy and engineering firm established in 1974. It serves as the export arm of Indian Railways for rolling stock, excluding Thailand, Malaysia, and Indonesia. The stock has risen 4.94% and is currently priced at ₹310.15, with a year-to-date return of 6.25%. Notably, RITES reported its highest-ever order book of ₹8,877 crore as of March 31, 2025, indicating strong future revenue visibility.
These companies continue to benefit from the Indian government’s infrastructure push, making them key players to watch in the railway and transport sector in FY25.
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Disclaimer: The article is for informational purposes only and not investment advice.