On June 4, 2025, Railway stocks rallied up to 15 percent with heavy trading volumes, reflecting strong market enthusiasm. Companies like RVNL, Ircon, and Titagarh Rail Systems saw significant gains, driven by positive sentiment around new orders and government support. This surge highlights the sector’s bright future and growing investor trust in its potential.
Railway stocks in India have been on an upward trend for the past two years, capturing the attention of investors and market watchers. This steady rise is driven by growing demand for rail transport, both for passengers and freight, as India’s population and economy expand. Government initiatives to modernize the railway network, improve safety, and introduce high-speed trains like Vande Bharat have boosted investor confidence.
Additionally, the push for urbanization and infrastructure development has increased the need for efficient rail services, making railway stocks a hot pick for those looking to invest in a growing sector.
A key factor behind this surge is the flood of orders and MOUs received by railway companies. IRCON secured a Rs. 1,068 crore EPC contract from East Central Railway, while Texmaco Rail & Engineering received a Rs. 122 crore order from Mumbai Railway Vikas for traction transformers over 30 months.
Additionally, RITES signed a Memorandum of Understanding with Shree Cement to develop rail infrastructure, and RVNL signed an MoU with Texmaco for collaboration in railway manufacturing, operations, and technology innovation. These contracts and collaborations highlight the growing demand for railway infrastructure and the sector’s potential for growth.
Government support has been a game-changer for the railway sector. In the Union interim Budget 2024-25, presented on July 23, 2024, the railway ministry received a record capital expenditure allocation of Rs 2.62 lakh crore to fund infrastructure upgrades, electrification, and safety systems like Kavach.
For 2025-26, the capital expenditure (capex) allocation for Indian Railways was set at Rs. 2.55 lakh crore, which has increased by 1.19 percent compared to the 2024-25 budget of Rs. 2.52 lakh crore. This focus on modernization, new tracks, and high-speed trains has fueled optimism, encouraging investors to bet on railway stocks.
Here are the list of railway stocks that surged up to 15%
| Railway Stock Name | CMP | Stock Movement | Volume |
| Ircon International Ltd | ₹221.10 | 15.37% | 101.55 Mn |
| Railtel Corporation of India Ltd | ₹446.95 | 12.53% | 32.56 Mn |
| Texmaco Rail & Engineering Ltd | ₹173.80 | 9.38% | 18.44 Mn |
| Rail Vikas Nigam Ltd | ₹431.45 | 7.55% | 41.14 Mn |
| Jupiter Wagons Ltd | ₹404.00 | 6.52% | 6.7 Mn |
| Titagarh Rail Systems Ltd | ₹930.50 | 4.51% | 8.27 Mn |
| Indian Railway Finance Corp Ltd | ₹145.28 | 4.34% | 60.46 Mn |
In conclusion, the surge in railway stocks, up to 15 percent, reflects robust government support, hefty budgets, and a steady flow of orders and MOUs. With modernization and investor confidence driving growth, the railway sector remains a promising investment avenue for the future.
Written By – Nikhil Naik
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