Indian railway stocks surged significantly on Friday, June 20th, after a sharp correction in the previous session. The outlook for the Indian railways sector is positive for FY26, on the back of large order books. The share price of BEML led the gains in the railway basket, with healthy buying sentiment in IRFC, RVNL, RailTel, Titagarh, and others.
Railway Stocks Performance:
At the time of writing, BEML stock skyrocketed by 9% on NSE to Rs 4,660.30 apiece, while IRFC was up 1.6% to Rs 134.40. RVNL and IRCTC traded at Rs 386.45 and Rs 755.10 apiece, higher by more than 1% each.
IRCON International soared nearly 2% to Rs 193.90, and RailTel Corporation jumped nearly 2.8% to trade at Rs 418.70 apiece. Texmaco Rail & Engineering stock zoomed by 2% to Rs 160.71, and Titagarh Rail Systems jumped by 2.7% to Rs 862.35 apiece. Additionally, RITES Ltd gained by 0.8% to Rs 272.45 apiece.
Concor share price surged marginally to Rs 730.75 apiece on the NSE. This performance comes after the railway giant fixed July 04, 2025, as the record date for its upcoming bonus issue of 1:4 ratio.
In the previous session, railway stocks had crashed by 2% to 5%.
Railways Latest Updates:
As per the latest news in railway sector is that the government is likely to upgrade Indian passenger train services with addition of 100 100 mainline electric multiple units (MEMUs) and configuration of 16-20 coaches per train.
The Railway minister Ashwini Vaishnaw said, for the convenience of passengers, the government is planning 50 new Namo Bharat trains, 100 new MEMU trains, and 50 new Amrit Bharat trains.
The Railway Ministry also inaugurated the country's largest automobile Gati Shakti Multi-Modal Cargo Terminal at Maruti Suzuki India Limited, Manesar, Haryana.
The Gati Shakti Cargo Terminal at Maruti Suzuki's Manesar plant is a key infrastructure development that significantly enhances the logistics efficiency of automobile transportation. The Manesar facility is connected to Patli railway station through a 10 km dedicated rail link, which forms part of the 121.7 km Haryana Orbital Rail Corridor being developed by the Haryana Rail Infrastructure Development Corporation (HRIDC). The construction of this 10 km link involved an investment of ₹800 crore, with HRIDC contributing ₹684 crore and the remaining amount funded by Maruti Suzuki. The loading capacity of this Gati Shakti Cargo terminal is one of the highest in India i.e 4.5 lakh automobiles per annum, as per the PIB statement.
Railway Sector Outlook:
After Q4 results, Elara Capital's strategic note said, "Railways segment witnessed a slowdown due to deferral of orders on shift in government priority and rising competition dragged down margin. However, rebound is expected in FY26."
In Budget 2025, Indian Railways was awarded a record outlay of Rs 1,10,055 crore, of which Rs 1,07,100 crore is for capital expenditure. Union Minister of Finance and Corporate Affairs Nirmala Sitharaman in February announced a National Rail Plan for India—2030. The Plan is to create a 'future-ready' Railway system by 2030.
During the Budget 2025, the central government announced a total capital expenditure of Rs 2,65,200 crore for railways for FY26. Notably, in both 2024-25 and 2025-26, the budgetary support was Rs 2,52,200 crore, financing 95% of the capital expenditure in these years.
Also, ICRA believes entities linked with the Indian Railways and Defence sectors would also see their large order books translating into revenues and earnings.
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