Railway related stocks trade higher after government hike fares of AC, non AC trains

Shares of railway related companies were trading higher on Wednesday, June 25, a day after government hiked fares of air-conditioned and non-air-conditioned trains.

Texmaco Rail and Engineering, Titagarh Rail Systems, RailTel Corporation, Ircon International, IRCTC, Rail Vikas Nigam and IRFC shares rose in range of 1%-5%.

The Railway Ministry is considering increasing fares of non-AC class in Mail/Express trains by 1 paisa and all AC classes by 2 paise per kilometre from July 1, 2025, an officials told news agency Press trust of India.

As compared to the previous fare revisions in 2020 and 2013, the current increase will be the lowest, official said.

“So far as suburban train and monthly season tickets are concerned, it is being decided not to increase any fare in the interest of the daily commuters,” the official added.

Apart from fare hike, from July the Indian Railways will roll out changes aimed at curbing the influence of middlemen in the ticketing system. The Ministry of Railways has announced that Aadhaar-based OTP authentication will be integrated into the reservation process for Tatkal tickets.

Effective July 1, users booking Tatkal tickets on the IRCTC’s official website and mobile app must be Aadhaar-verified. From July 15, Aadhaar-based OTP authentication will become mandatory for all online Tatkal bookings.

This new rule will also extend beyond digital platforms. Tatkal tickets booked at Passenger Reservation System (PRS) counters or via authorised agents will now require OTP verification, which will be sent to the mobile number provided at the time of booking.

The move is expected to enhance transparency and eliminate misuse of the Tatkal scheme by unauthorised agents.

As of 11:01 am, all the railway related shares were trading higher in line with the positive momentum on Dalal Street.