RVNL, IRFC, Railtel, IRCTC: Railway stocks jump over 10% today; what you need to know

Individually, Rail Vikas Nigam (RVNL) shares jumped 10.45% to ₹415.20 apiece on the BSE, while RailTel Corporation of India was trading nearly 8% higher at ₹390.50. Jupiter Wagons shares were up nearly 9% at ₹422.35, and Texmaco Rail & Engineering was trading 6.24% higher at ₹164.40.

Texmaco will release its March quarter numbers today.

Besides these, Indian Railway Catering and Tourism Corporation (IRCTC) shares were also trading over 3% higher at ₹810 apiece, while the financial entity in the sector, Indian Railway Finance Corporation (IRFC), was trading over 7% at ₹139.40 on the BSE. BEML shares were trading 7.65% higher at ₹3,650.05 apiece on the BSE.

The rally in stocks could be attributed to factors such as order wins, quarterly results, and the government's continued focus on railway infrastructure. Moreover, easing border tensions and a recovery in stock markets from lows are also aiding the stocks of various sectors, including Railways.

According to a report by India Brand Equity Foundation, India has the fourth-largest railway system in the world, following the US, Russia, and China. The railway sector has seen some rapid developments, investments, and support from the Government in the recent past.

Indian Railways, as per the report, runs 13,523 passenger trains and 9,146 freight trains daily on its network, with passenger trains running at an average speed of 50.6 kmph and freight trains at 24 kmph. As of FY22, it had a total route network of 68,103 km. Indian Railways has logged the highest-ever electrification of sections covering 6,015 Route Kilometres (RKM) in a single year during 2020-21.

"More than 5 times electrification was achieved during (2014-21) the last seven years as compared to 2007-14," the report adds.

In March 2024, Prime Minister Narendra Modi inaugurated infrastructure projects worth ₹15,400 crore (US$ 1.84 billion) in Kolkata, including India's first underwater metro system, to improve connectivity in West Bengal.

Further, under the Union Budget 2025-26, the government allocated ₹3.02 lakh crore (US$ 34.7 billion) as compared to ₹2.52 lakh crore (US$ 30.3 billion) in 2024-25 to the Ministry of Railways.

India aims to transform Indian Railways into a net-zero emitter as part of its broader energy goals by 2030, as confirmed by Prime Minister Narendra Modi.

The future outlook of the railway sector looks robust, note market observers. By 2030, the Indian railway market is expected to be the third largest in the world, accounting for 10% of the global market.

Company-specific details

The cost of the project is ₹115.79 crore.

Railtel, according to reports, reported a rise of 46.3% in its net profit to ₹113.4 crore for the March 2025 quarter (Q4 FY25), compared to ₹77.53 crore logged in the corresponding period last year. The Navratna public sector undertaking (PSU)'s revenue from operations rose 57% to ₹1,308.28 crore, compared to ₹832.7 crore in the year-ago period.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the March quarter rose 53.8% to ₹180 crore, compared to ₹117 crore in the same period last year. EBITDA margin was 13.73%, compared to 14%, reporting a drop of 27 basis points (bps).

A sharp rise in IRCTC stock could be due to easing geopolitical tensions. Since a major overhang is over now, shares related to travel, tourism, and hospitality are surging. IRCTC is a public sector undertaking under the Indian Ministry of Railways. It's responsible for providing catering, tourism, and ticketing services for Indian Railways. IRCTC was established in 1999.

Indian Railway Finance Corporation (IRFC) reported a 3% decline in its profit at ₹1,667 crore for the March quarter (Q4 FY25).

The company under the Ministry of Railways had earned a profit of ₹1,717 crore during the fourth quarter of the FY24.

The company's total income rose to ₹6,723 crore in the January-March quarter from ₹6,478 crore in FY24, the state-owned company said in a regulatory filing.

During the period under review, its expenses also increased to ₹5,042 crore as against ₹4,761 crore a year ago.

The board of directors also approved the raising of resources for the financial year 2025-26 up to ₹60,000 crore from both domestic and international markets.

It will be raised through a prudent mix of tax-free bonds, taxable bonds on a private placement or public issue basis including capital gain bonds, government-guaranteed bonds, and government-serviced bonds, it said.

Besides, the board of IRFC approved the appointment of Randhir Sahay as Director (Finance) with effect from the date of assumption of charge.

BEML

BEML shares have advanced 16% in the past five sessions, along with other defence stocks following Operation Sindoor.

BEML is a public sector undertaking (PSU), primarily known for manufacturing heavy earthmoving equipment and other products for various sectors such as defence, railways, and mining. The company is headquartered in Bangalore.