Top Railway Stocks in India

Top Railway Stocks to Buy in India

The Indian railway stocks have high-growth potential due to the significant government funding, expansion projects, high demand for passenger and freight services. The following are the top 5 railway stocks you can invest in based on market capitalization and 5-Year Profit CAGR.

Indian Railway Finance Corporation (IRFC)

Indian Railway Finance Corporation (IRFC) was established in 1986 and is a public sector firm under the Ministry of Railways. The company funds infrastructure projects and the expansion of the Indian railways sector. The government owns around 86% of the firm’s stake.

Indian Railway Finance Corporation (IRFC) has a market capitalization of ₹1,66,885 crores and has consistently shown profit over the last decade. The company has a 5-year profit CAGR of 15% and an average 5-year EBIT of ₹22,623 crore.

Indian Railway Catering & Tourism Corporation (IRCTC) Ltd

IRCTC Ltd is a public sector undertaking (PSU) under the Ministry of Railways and manages the catering, tourism, and online ticketing services for Indian Railways. The government holding in the firm is 62.40% as of March 2025.

IRCTC Ltd has a market capitalization of ₹54,236 crores and exhibited steady profit growth over the last 10 years. The company’s 5-Year Profit CAGR is 20% with an average 5-Year EBIT of ₹1,154 crores.

Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd was incorporated in 2003 and is responsible for implementing various types of railway infrastructure projects assigned by the Minister of Railways (MoR). It overlooks the construction of new lines, doubling, gauge conversion, electrification and other metro projects. The government holds 72.68% of the firm’s total equity.

Rail Vikas Nigam Ltd has a market capitalization of ₹75,551 crores and has maintained a healthy dividend payout ratio of 29.8%. The company has a 5-Year Profit CAGR of 11% and an average 5-Year EBIT of ₹2,149 crores.

Container Corporation of India (CONCOR) Ltd

Container Corporation of India Ltd was established in 1988 as a Navratna PSU under the Ministry of Railways. CONCOR Ltd operates 61+ terminals for EXIM and domestic cargo and specialises in rail transport, warehousing and LNG-powered logistics.

CONCOR Ltd has a market capitalization of ₹40,130 crores and is almost debt-free with a good dividend payout of 55.9%. The company has a 5-Year Profit CAGR of 7% and an average 5-Year EBIT of ₹1,483 crores.

Ircon International Ltd

Ircon International Ltd was established in 1976 and is a premier Navratna PSU under the Ministry of Railways. The company specializes in high-tech infrastructure projects, including railways, highways, tunnels and metro systems. Ircon International Ltd is the first construction company to receive the ISO-9001:2008 certification, which shows the high-quality services offered by the company.

Ircon International Ltd has a market capitalization of ₹16,661 crores and a healthy dividend payout of 34.2%. The company has a 5-Year profit CAGR of 8% with an average 5-year EBIT of ₹969 crores.

Why Invest in Railway Stocks in India?

Railways are the backbone of India's transport and are experiencing high demand due to growing population, urbanisation and economic growth. Investing in Indian railway stocks offers you exposure to high-growth potential investments as the government is consistently increasing their capex and is committed towards the sector’s development.

The railway sector is adopting advanced technology to enhance safety, efficiency and growth prospects. Indian railway stocks can be a good portfolio diversifier as they are less correlated with other markets and are relatively stable.