IRCTC, RVNL, IRFC: Here’s how railway stocks performed this week ahead of Union Budget 2025

Railway stocks declined nearly 14% on a weekly basis ahead of the Union Budget 2025. Shares of most of the leading state-run companies in the railway sector settled in the negative territory over the one-week period ended January 24.

As the broader markets witnessed a mostly a negative trend key indices, NIFTY50 and BSE SENSEX, declined 0.5% on a weekly basis. At the close of trading on Friday, NIFTY settled 113 points lower, while SENSEX tanked 330 points to close below 76,200 level, extending the losses for the third consecutive week.

Amid heavy selloff across sectors, the railway stocks also remained under pressure due to a weak market despite expectations of higher budgetary allocation in the upcoming Union Budget 2025 to push modernisation and infrastructure upgradation.

Ahead of the Union Budget, reports suggest that the government is likely to increase the total outlay for the railway sector to ₹3 lakh crore. Indian Railways had received a record allocation of ₹2.65 lakh crore for FY 2024-25. As the government has been highlighting its focus on infrastructure, Indian Railways is likely to see a higher capex allocation for safety, modernisation and launch of new trains.

Railway stocks like IRCTC, IRFC, RVNL and Jupiter Wagons, among others have remained in focus in the run up to Budget 2025.

Finance Minister Nirmala Sitharaman will present the Union Budget on February 1.

Here’s a look at the share price movement of some major railway sector companies in the week ended January 24:

IRCTC

So far this year, IRCTC shares have remained nearly flat with gains of 0.32%. In the last one year the stock has declined over 19%.

Earlier this week, IRCTC announced collaboration with ITC, Tata Group and Harvest Gold to offer more food choices to passengers. The company has also introduced ‘Book Now, Pay Later’ programme, which allows passengers to book online train tickets and pay within next 15 days.

Texmaco Rail

Texmaco Rail shares have declined 6.5% so far in 2025 (year-to-date) and over 12% in the last one year.

Last week, reports suggested that the Kolkata-based company is looking forward to increase its share of revenue from the private sector for its wagon manufacturing business. The government procurements contribute around 80% to the revenue of the company currently, while only 20% comes from non-government players. The company aims to increase this share to 30% by 2025-26.

Indian Railway Finance Corporation (IRFC)

The railway stock has dropped 19.5% in the last one year and more than 6% YTD.

The company released its Q3 results earlier this week, on January 20. The state-owned financing company for railway projects reported a 2% year-on-year rise in net profit in the December 2024 quarter. The company’s net profit stood at ₹1,630 crore against ₹1,599 crore in the year-ago period. Its revenue from operations remained nearly flat at ₹6,763 crore, up 0.4% compared to ₹6,737 crore in Q3FY24.

Titagarh Rail Systems

The stock has dropped over 12% in the past 12 months, while declining 13.6% YTD.

On January 23, the company announced a senior management change. The company appointed Shivendra Singh, as Chief Executive Officer, Passenger Rail Systems. He will be responsible for overseeing Passenger Rail Systems business vertical, the company said in a stock exchange filing.

Rail Vikas Nigam Ltd (RVNL)

The stock has gained 36.7% in the last one year, while declining 3.65% YTD.

Jupiter Wagons

This week the company announced fundraising plans and a new partnership to offer electric mobility solutions for logistics services.

The company’s subsidiary, Jupiter Electric Mobility (JEM), has entered into a partnership with Porter, a leading Goods Transport Agency, to provide intra-city and inter-city logistics solutions.

In a separate filing, the company informed the stock exchanges that its Board of Directors will meet, on January 29, to consider and approve proposals to raise funds through issuing equity shares or other equity-linked securities, including convertible preference shares, bonds, debentures and warrants. The Board may also consider methods like private placements, QIPs, public issues, rights issues, or preferential allotments, for raising funds.

In the run up to Budget 2025, the railway stocks remain in focus. Experts hopeful of a recovery in railway stocks as the government is expected to go for a funding boost for the Indian Railways. The current slide in railway stocks could be temporary due to broad-based market challenges and profit booking across sectors, according to experts.