Indian Railways received a Rs. 2.65 lakh crore budget allocation for FY25-26, the same as the previous fiscal year, targeting 100 percent electrification, 7,000 km of high-speed rail by 2047, and 200 new Vande Bharat trains to enhance freight and passenger services.
Additionally, Rs. 10,000 crore has been provided from extra-budgetary resources to support modernisation and operational expenses, taking the total capex to Rs. 2.75 lakh crore.
Indian Railways in 2025 is entering a transformative phase, marked by record investments, rapid modernisation, and a clear focus on sustainability, safety, and passenger experience. The sector’s ambitious targets-including high-speed rail, 100 percent electrification, and expanded freight capacity-position it as a critical driver of India’s economic growth and green transition over the next decade.
Here is a breakdown of notable railway stocks categorised by their respective sectors:
I. Construction
Ircon International Limited
With a market cap of Rs. 17,752 crores, the stock surged by around 6.3 percent on BSE to close at Rs. 188.75 on Friday. IRCON is an integrated engineering and construction company having expertise in major infrastructure sectors including railways, highways, bridges, flyovers, tunnels, metro, railway electrification, EHV sub-stations, electrical and mechanical works, commercial and residential buildings, railway production units, amongst others. The company offers Engineering Procurement and Construction (EPC) services on a lump-sum turnkey, EPC and item-rate basis for various infrastructure projects.
Rail Vikas Nigam Limited
With a market cap of Rs. 85,402.4 crores, the stock surged by around 9 percent on BSE to close at Rs. 409.6 on Friday. RVNL is involved in executing various railway infrastructure projects assigned by the Ministry of Railways (MoR). These projects include doubling (including 3rd/4th lines), gauge conversion, new lines, railway electrification, major bridges, workshops, production units, and revenue-sharing agreements with the Railways.
II. Tickets, Catering, and Lounge Services
Indian Railway Catering & Tourism Corporation Limited
With a market cap of Rs. 64,748 crores, the stock surged by around 3 percent on BSE to close at Rs. 809.35 on Friday. IRCTC holds the authorisation from Indian Railways to provide catering services, online railway ticketing, and packaged drinking water at railway stations and on trains across India.
The primary objective of its incorporation was to modernise and professionalise catering and hospitality services, managing these facilities at railway stations, trains, and other locations.
Dreamfolks Services Limited
With a market cap of Rs. 1,508 crores, the stock surged by around 7 percent on BSE to close at Rs. 283.1 on Friday. DreamFolks Services Limited primarily integrates global card networks operating in India, card issuers, and corporate clients, including airline companies with various airport lounge operators, transport operators and other airport service providers on a unified technology platform.
In 2022, DreamFolks Services forayed into the railways sector to provide lounge access at 12 railway stations in India. The company is the leading player in the Indian lounge aggregation industry, with coverage in both Airports & Railways. As of Q3 FY25, DreamFolks Services covers 13 lounges.
III. Financing
Indian Railway Finance Corporation Limited
With a market cap of Rs. 1.8 lakh crores, the stock surged by around 6 percent on BSE to close at Rs. 138.55 on Friday. IRFC’s principal business is to borrow funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways as a finance lease. It is registered as Systemically Important Non–Deposit taking Non Banking Financial Company (NBFC–ND–SI) and Infrastructure Finance Company (NBFC-IFC) with the Reserve Bank of India (RBI).
IV. Coaches and Rolling Stock
Texmaco Rail & Engineering Limited
With a market cap of Rs. 6,521.3 crores, the stock surged by around 5 percent on BSE to close at Rs. 163.25 on Friday. Texmaco Rail manufactures a diverse range of products, viz. Railway Freight Cars, Hydro-mechanical Equipment & Industrial Structural, Loco Components and Loco Shells, Steel Girders for Railway Bridges, Steel Castings, and Pressure Vessels, etc., along with EPC contracts for Execution of Railway Track, signalling & Telecommunication Projects, Rail Electrication & Automatic Fare Collection, etc. on a turnkey basis.
Titagarh Rail Systems Limited
With a market cap of Rs. 12,293 crores, the stock surged by around 13 percent on BSE to close at Rs. 912.8 on Friday. Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, is mainly engaged in the business of manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialised equipments & bridges, ships, and more.
Jupiter Wagons Limited
With a market cap of Rs. 17,922.3 crores, the stock surged by around 9 percent on BSE to close at Rs. 422.2 on Friday. Jupiter Wagons Limited, formerly known as Commercial Engineers and Body Builders Co Limited, is engaged in the business of manufacturing railway wagons, wagon components, castings, metal fabrication comprising load bodies for commercial vehicles, rail freight wagons and components with manufacturing facilities at Hooghly (WB).
V. Network & Signalling
RailTel Corporation of India Limited
With a market cap of Rs. 12,300 crores, the stock surged by around 6 percent on BSE to close at Rs. 383.25 on Friday. RailTel Corporation is one of the largest neutral telecom infrastructure providers in the country, owning a Pan-India optic fibre network on exclusive Right of Way (ROW) along the railway track. RailTel serves as the digital transformation partner of the Ministry of Railways, undertaking projects aimed at modernising Indian Railways.
HBL Engineering Limited
With a market cap of Rs. 15,778 crores, the stock slumped by around 1.4 percent on BSE to close at Rs. 569.2 on Friday. HBL Engineering, formerly known as HBL Power Systems Limited, offers comprehensive battery and engineering solutions to diverse clients, including prominent system integrators, EPC firms, as well as entities within the railway, aviation, and defence sectors worldwide.
The principal activities of the company comprise of manufacturing of different types of batteries, including lead acid, ni-cad, silver zinc, lithium and railway & defence electronics and other products.
VI. Electrification
Transrail Lighting Limited
With a market cap of Rs. 7,243 crores, the stock surged by around 2 percent on BSE to close at Rs. 539.5 on Friday. Transrail Lighting is one of the leading Indian EPC companies with integrated manufacturing facilities for lattice structures, conductors, and monopoles. The company’s business is divided into four verticals: Power Transmission & Distribution (including substations), Civil Construction, Poles & Lighting, and Railways.
Transrail has executed railway projects involving electrification, earthwork, signalling, and telecommunications, amongst others. The company provides solutions to the civil and electrical needs of the railway industry.
K E C International Limited
With a market cap of Rs. 21,316 crores, the stock fell by around 0.4 percent on BSE to close at Rs. 800.75 on Friday. The railway business of KEC International provides end-to-end EPC services for railway track laying, over-head electrification (OHE), civil infrastructure, as well as for technology-intensive segments such as signalling & telecommunications, including Automatic Block Signalling (ABS), tunnel ventilation and train collision avoidance systems (KAVACH).
Kalpataru Projects International Limited
With a market cap of Rs. 18,674 crores, the stock surged by around 3 percent on BSE to close at Rs. 1,093.5 on Friday. Kalpataru Projects International Limited is engaged in building railway infrastructure, including railway electrification, traction substations, track laying, earthwork, bridges, buildings, stations, workshops, signalling and telecommunications and 3rd Rail DC systems.
Written by Shivani Singh
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