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.

Here’s a look at the stock movement of some major railway stocks for the week ended January 17:

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).

IRFC is an Indian public sector undertaking engaged in raising financial resources for expansion and running through capital markets and other borrowings. On January 15, the company announced that it has signed a lease agreement with another state-run company NTPC Ltd for the financing of 8 Bogie Open Bottom Rapid (BOBR) rakes worth approximately ₹250 crore. Earlier this week, IRFC had also informed that it has emerged as the lowest bidder (L1) to finance ₹3,167 crore for the development of the Banhardih coal block in Latehar District, Jharkhand.

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.

RVNL, a state-run enterprise incorporated to bridge the infrastructure gap on Indian Railways, announced on January 15 that it has received a letter of acceptance from Bharat Sanchar Nigam Ltd (BSNL) for the development, upgradation, and maintenance of the middle-mile network of BharatNet. The total contract value stands at ₹3,622.14 crore, including operational expenses for a 10-year maintenance period.

IRCON International

Shares of IRCON International Ltd shot up 14.26% this week to close at ₹219.66 apiece on the NSE on Friday. The stock is up 5% in the past year, while rising 2.93% YTD.

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. The stock closed at ₹779.4 apiece, up 2.12%, on the NSE on Friday. IRCTC shares have fallen 16.67% in the last one year and a marginal 0.74% so far in 2025.

IRCTC informed exchanges earlier this week that it has appointed Sudhir Kumar as its chief financial officer (CFO), effective January 16, 2025. Kumar took over the role following the departure of Gaisingam Kabui, whose tenure ended on December 16.

Other railway stocks: Other railway stocks rallied, too, in the week ended January 17. RailTel Corporation was up 9.16% this week to ₹414 levels, Texmaco Rail and Engineering Ltd surged 8.23% to ₹197.99 levels and Jupiter Wagons Ltd jumped 9.14% to settle at ₹489.9 apiece on the NSE on Friday.

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