Mumbai: Railway shares are once again on the radar of investors. Recent ticket price hikes and rising expectations for capex ahead of the Union Budget 2026 have breathed new life into this sector. Apart from this, when we talk about history, there is a lot of movement in the railway stocks before the budget. Railway shares have seen a rise in the last two weeks. However, there was some profit recovery afterwards. During this time, Ircon International has risen by about 11 percent, while Rail Vikas Nigam (RVNL) has increased by 7 percent. At the same time, the movement of IRCTC was comparatively slow and it registered an increase of about 2 percent.
Railways are expected to get an additional revenue of about Rs 600 million with the passenger fare hike implemented from 26 December. Apart from this, the possibility of a record capex of 1.3 lakh crore rupees in the budget 2026 has also supported the shares.
Why are PSU Railway shares benefiting
PSU stocks like RVNL and IRFC have benefited from improved operating ratios and increased focus on safety infrastructure such as Kavach systems. It is estimated that the government can double the expenditure on safety in 2026 and allocate about Rs 1.3 lakh crore for the Railways.
| Company | CMP (Rs) | P/E (x) | P/BV (x) | MCap (Rs m) | RoE (Latest, %) |
| IRFC | 124.3 | 23.8 | 2.9 | 1624415 | 12.30% |
| IRCON INTERNATIONAL | 170.1 | 28.6 | 2.5 | 159982 | 11.50% |
| RAILTEL CORP OF INDIA | 353.7 | 35.4 | 5.4 | 113516 | 15.00% |
| IRCTC | 656.4 | 38.3 | 12.3 | 525080 | 35.90% |
| TITAGARH WAGONS | 825.1 | 47.9 | 4.4 | 111119 | 11.10% |
| RVNL | 342.6 | 71.9 | 7.5 | 714224 | 13.40% |
Stocks to Buy: Expert recommends RVNL, IRCON, IRFC
Commenting on railway stocks, Head of Research of Lakshmi Shree Securities Anshul Jain gave his opinion on the three railway stocks.
Anshul Jain said that Rail Vikas Nigam Limited (RVNL) may get a pullback of up to 440.
IRCON’s shares are expected to cross the level of 200 rupees in the coming days. The probability that the stock will hit the level of 206.60 rupees is quite high.
The first level in the stock of Indian Rail Finance Corporation (IRFC) is 130 rupees, if it is crossed. If the bullish move goes ahead, the stock can go up to Rs 141.95.
What will be the next focus in the railway sector
In the coming years, the government’s emphasis will be on expanding new routes, reducing congestion at large junctions, building advanced trains and wagons and increasing the safety and efficiency of freight and passenger services. Companies engaged in railway-related construction and engineering projects, component manufacturers and logistics players who get more freight from the Railways may see good growth in their order book and earnings.
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