Railway stocks surged up to 9% amid strong quarterly results, government support, and attractive post-correction valuations. Companies like RailTel, Titagarh, and Ircon led the rally, reflecting renewed investor interest driven by positive sentiment and long-term growth prospects.
Indian railway stocks witnessed a sharp surge today, with leading names like RailTel Corporation of India jumping over 9% to ₹356. Titagarh Rail Systems, Ircon International, and Texmaco Rail & Engineering also rose by approximately 7.5%. Meanwhile, RITES, Indian Railway Finance Corporation (IRFC), and Rail Vikas Nigam saw gains of around 4%. This rally follows a significant correction, during which many of these stocks had declined by 30–50% from their all-time highs reached in mid-2024.
| Company Name | Today's Change | Return over 1 Week (%) | Return over 1 Month (%) |
| BEML Ltd. | 1.96 | 12.55 | 11.77 |
| Indian Railway Catering And Tourism Corporation Ltd. | 1.83 | 6.8 | 6.42 |
| Indian Railway Finance Corporation Ltd. | 4.21 | 9.38 | 4.75 |
| Ircon International Ltd. | 7.86 | 13.9 | 15.57 |
| Jupiter Wagons Ltd. | 2.75 | 12.75 | 3.41 |
| Rail Vikas Nigam Ltd. | 4.44 | 12.51 | 7.68 |
| Railtel Corporation Of India Ltd. | 9.22 | 18.26 | 21.78 |
| Rites Ltd. | 5.58 | 12.19 | 10.41 |
| Texmaco Rail & Engineering Ltd. | 7.71 | 17.63 | 15.52 |
| Titagarh Rail Systems Ltd. | 7.69 | 16.21 | 7.93 |
Source:
What’s Driving the Spike?
1. Strong Quarterly Results: RailTel Corporation of India reported robust earnings for the March 2025 quarter, with a 46% year-on-year (YoY) jump in net profit and a 57% YoY increase in net sales. RITES posted modest earnings growth with a 2.45% YoY rise in net profit, but the company’s order book hit an all-time high of ₹8,877 crore as of March 31, 2025—indicating strong future revenue potential.
2. Company-Specific Developments: IRFC received board approval to raise up to ₹60,000 crore in FY26 for expansion. Despite a slight dip in quarterly profits, the move reflects long-term growth ambitions. Other railway PSUs are also expected to benefit from increased capital expenditure and new government contracts.
3. Attractive Valuations Post-Correction: Following the steep correction from their 2024 highs, many railway stocks are now trading at attractive valuations. This has triggered renewed interest from value investors.
4. Positive Market Sentiment: The broader market environment is also bullish. Small-cap and mid-cap indices have been outperforming, while benchmark indices like the Sensex and Nifty are trading above key moving averages. Railway stocks are riding this wave of positive sentiment.
5. Budgetary and Policy Support: The Indian government continues to focus on railway infrastructure, backed by a record budget allocation of ₹2.62 lakh crore for FY 2025–26. This sustained investment is a key driver of long-term optimism in the sector.
Conclusion
The recent rally in railway stocks reflects a mix of strong earnings, favourable government policies, and improved investor sentiment. After a steep correction, these stocks are attracting buyers once again, especially as fundamentals remain intact and future prospects look promising. With robust budgetary support and a growing focus on modernisation and digitalisation, the Indian railway sector is well-positioned for sustained long-term growth.
Disclaimer: The article is for informational purposes only and not investment advice.
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