Are railway stocks back on track? Here is how RVNL, IRCTC, Railtel and IRFC performed in Q3FY26

Railway stocks, once in focus for stellar returns, are now showing lacklustre performance across the board. Stocks like Rail Vikas Nigam Ltd, Indian Railway Finance Corporation, Railtel Corporation and Texmaco Rail & Engineering have shown poor share price performance of -7% to -23% in 12 month period. While the majority of the stocks have fallen nearly 50% from their previous record high levels hit in 2024. The fall in share prices was also followed by a weakening in earnings and FII exodus from the stocks. Here is how the railway companies performed in Q3FY26.

Rail Vikas Nigam

Shares of Railway technology and infrastructure company, Rail Vikas Nigam Ltd, are trading nearly 50% lower from its record high levels, as the company’s earnings growth showed signs of maturing. In the Q3FY26, the company’s revenue grew to ₹4,936 crore with a PBT of ₹359 crore. The company’s total orderbook stands at ₹87,000 crore, with the majority of the orderbook coming from railway nomination at ₹40,000 crore. The management guided for flat revenue growth due to a shift in the bidding process. The management also expects a higher component of competitive bidding orders, which hold lower margins, thereby impacting profitability. The subdued earnings growth, along with muted guidance from have led to investor disappointment.

Railtel Corporation

Railtel Corporation reported 19% YoY jump in revenue at ₹913 crore. The company had posted ₹768 crore revenue in the December quarter in the previous year. During the quarter, the project segment posted ₹564 crore and ₹369 crore from the telecom segment. While the company’s total order book for the quarter stood at ₹8,497 crore. The operating profit for the quarter improved strongly at nearly 10% YoY. The share trading is nearly 50% lower from the previous record high levels of ₹608 apiece to ₹329 apiece on the NSE.

Indian Railway Finance Corporation

The finance arm of the category posted better-than-expected earnings performance with the profitability growth and strong asset-liability management during the quarter. The company’s profit after tax jumped 11% YoY, and the AUM for the quarter jumped from ₹4.6 lakh crore to ₹4.75 lakh crore and aims to touchthe ₹5 lakh crore mark going forward. The company expects margins to edge higher with the cost of capital steady below 7%. During the management call, the company guided on diversification from being a single-client player to a multi-client player. The company also declared itself as L1 for an exposure worth ₹17,000 crore with execution in pipeline mode.

IRCTC

The Indian Railway’s ticketing and technology platform IRCTC posted record profits during the Q3FY26. The company’s revenue jumped 7.7% YoY to ₹1,147 crore with an EBITDA growth of 8.3% to ₹404 crore and an EBITDA margin of 35.25% vs 35.05%. Management guided robust performance across all segments, including internet ticketing, catering and tourism segments. Additionally, the in-house payment system is also expected to start monetising in the coming quarters. The shares are now trading 44% lower from its record high levels last touched in May 2024.