IRFC, RVNL, IRCON: Here’s how railway stocks performed this week amid Budget 2025 expectations

Railway stocks zoomed this week in the run-up to the Union Budget 2025. Shares of almost all major state-run companies operating in the railway sector surged up to 14% over the past one-week period ended January 17.

According to media reports, the government is likely to increase capital expenditure for the railway sector in the upcoming Budget for FY 2025-26. Experts are also predicting a 15-20% increase in the railway budget allocation to ₹3 lakh crore.

In the previous Union Budget presented in July 2024, the Railway Ministry had received a record allocation of ₹2.62 lakh crore for capital expenditure.

Reacting to the speculations, stocks of railway infrastructure-related companies rallied this week after facing selling pressure in the past few months due to elevated valuations and weak broader markets.

Indian Railway Finance Corporation

Shares of Indian Railway Finance Corp. Ltd (IRFC) jumped 8% this week to settle at ₹146.65 apiece on the NSE on Friday. However, the stock has dropped 4.45% in the last one year and more than 2.34% year to date (YTD).

Rail Vikas Nigam Ltd

Shares of Rail Vikas Nigam Ltd (RVNL) rallied 8.5% this week. The stock closed 3.83% higher at ₹426.9 apiece on the NSE on Friday. The stock has gained a whopping 72.2% in the last one year, while remaining nearly flat in 2025 so far.

IRCON International

Ircon International Ltd, earlier known as Indian Railway Construction International Ltd, is an Indian engineering and construction corporation that specializes in transport infrastructure.

IRCON announced this week that it has advanced its ‘Mission 100% Electrification’ by completing the 132/25 kV Golakganj Traction Substation in North Frontier Railways’ Alipurduar Division and commissioning a 9-km 132 kV transmission line in Tripura. These projects enhance eco-friendly train operations, enabling 25kV electric traction while reducing carbon emissions and supporting sustainable railway infrastructure.

IRCTC

Indian Railway Catering and Tourism Corp. Ltd (IRCTC) shares remained flat this week. On Friday, the stock closed at ₹779.4 apiece, up 2.12%, on the NSE. IRCTC shares have fallen 16.67% in the last year and a marginal 0.74% so far in 2025.

The railway stocks were up on expectations of fresh stimulus for the railways infrastructure in the Union Budget 2025.