RVNL, BEML, RITES, Ircon Int'l: Railway stocks surge; things to know as Q4 results are underway

When last seen, Indian Railway Finance Corporation (IRFC) shares were trading 0.54% higher at ₹97.65 apiece on the NSE, while Rail Vikas Nigam Limited (RVNL) was up 0.91% at ₹272.05. Ircon International traded 1.65% higher at ₹143.41, and Indian Railway Catering and Tourism Corporation (IRCTC) was up over 0.5% at ₹530.80 on the NSE. RITES was up around 1% at ₹206.17.

Railtel Corporation of India was up 1.33%, and BEML was up 2.73% at ₹1,878.70.

The NIFTY INDIA RAILWAYS PSU index was up 0.75% at 3,103.35 levels, with 16 out of 17 constituents in the green.

Apart from railway PSUs, Texmaco Rail & Engineering was trading 1% higher at ₹109.45, while Titagarh Rail Systems was up 2.3% at ₹764.10.

About railway stocks

Railway stocks have been in focus amid continued government focus on infrastructure and railway modernisation. Higher budgetary allocation towards electrification, station redevelopment, Vande Bharat trains, freight corridors, and rolling stock manufacturing has improved growth visibility for railway-linked companies.

Budget allocation for Railways in Budget 2026-27

The Union Budget 2026-27 allocated a record capital expenditure of about ₹2.93 lakh crore to Indian Railways, with the government maintaining its strong infrastructure push in the sector.

Key focus areas include safety upgrades, high-speed rail corridors, Vande Bharat expansion, track doubling, station redevelopment, rolling stock, electrification, and freight infrastructure.

The Budget also proposed seven new high-speed rail corridors, while major allocations were directed towards Kavach safety systems and modernisation projects.

Strong order books, robust execution, the Make-in-India push, and expectations of sustained capex spending are other positive factors.

Latest updates

Indian Railways has approved three infrastructure and safety projects worth a total of ₹2,193 crore, including line expansion works in Tamil Nadu and Bihar and slope stabilisation measures on the Jammu-Katra section, the government said on Tuesday.

The approved projects are the ₹993-crore Arakkonam-Chengalpattu doubling project in Tamil Nadu, the ₹962-crore Kiul-Jhajha third line project in Bihar, and the ₹238-crore protection and rehabilitation works on the Jammu-Shri Mata Vaishno Devi Katra section.

The 68-km Arakkonam-Chengalpattu doubling project on Southern Railway forms part of the Chennai suburban circular rail network connecting Chennai Beach, Tambaram, Chengalpattu, and Arakkonam.

The ministry said the project will help ease congestion on the busy suburban corridor, improve punctuality, and allow more frequent train services.

RITES

Construction company RITES recorded a 1.4% fall in net profit after tax (PAT) in the March quarter due to the company’s rising expenses, while the core revenues rose for the period.

In the NSE filing, RITES posted a 1.4% fall in its consolidated net profits to ₹139 crore in the fourth quarter of the financial year ended 2025-26, compared year-on-year with ₹141 crore in the same period a year ago.

The company’s revenue from core operations advanced 27% to ₹768 crore in the March quarter of the year ended 2025-26, compared with ₹602 crore in the same period a year earlier.

The data further showed that the company increased its employee benefits expenses to ₹137 crore, from ₹126 crore in the same period a year ago. The overall total expenses for the company rose by 42% YoY to ₹617 crore, compared to ₹434 crore in the same period a year ago.

Latest corporate updates showed that RITES received a letter from the National Aluminium Company Limited (NALCO) to provide engineering and project management consultancy services for the construction of a railway siding at Sankerjang.

The contract value of the project was increased from ₹79.73 crore to ₹118.89 crore, excluding GST, as per the official announcement.

IRFC

State-owned Indian Railway Finance Corporation (IRFC) posted a flat net profit at ₹1,684 crore for the fourth quarter ended March 2026.

The public sector undertaking (PSU) of the Ministry of Railways had earned a net profit of ₹1,682 crore during the fourth quarter of FY25.

The company's total income rose to ₹7,329 crore in the January-March quarter of FY26, up 9% year-on-year from ₹6,724 crore in the same period of FY25, IRFC said in a regulatory filing.

During the period under review, its interest income also increased to ₹2,902 crore as against ₹1,970 crore a year ago.

Total expenses stood at ₹5,644 crore, compared to ₹5,042 crore in the corresponding quarter a year ago.

For the financial year ended March 31, 2026, IRFC reported its highest-ever profit of ₹7,009 crore, compared to ₹6,502 crore in 2024-25, registering a growth of 7.8%.

IRFC recently said that it has set a target of crossing a milestone of ₹1 lakh crore in loan sanctions during the current financial year.

To fund its business growth, the public sector undertaking (PSU) of the Ministry of Railways is looking to raise ₹70,000 crore, including from overseas, in FY27.

"We are aiming for a loan sanction of ₹1 lakh crore and disbursement of about ₹40,000 crore during the ongoing financial year, as the pipeline of high-quality infrastructure projects looks strong," IRFC Chairman and Managing Director Manoj Kumar Dubey told PTI.

A steady pipeline and emerging opportunities in sectors such as metros and ports are expected to further accelerate growth in the coming financial year, following its whole-of-government approach, Dubey said.

During FY26, lRFC sanctioned projects worth ₹72,949 crore and disbursed approximately ₹35,067 crore, exceeding its annual guidance.

Texmaco Rail

Sudipta Mukherjee, managing director, said that Q4 FY26 was marked by strong operational performance, driven by disciplined execution and effective financial management, in alignment with their long-term strategic objectives. The company posted a net profit of ₹57.7 crore for the quarter, up 45.1% from ₹39.8 crore in the year-ago period.

"We continued to strengthen Texmaco’s position as an integrated provider of rail and infrastructure solutions, expanding our capabilities in manufacturing, engineering, rail systems, and technology-driven businesses. The company maintained a strong focus on balance sheet management and cost optimisation. Net debt decreased to ₹444 crore, with the net debt to equity ratio improving from 0.22x in FY25 to 0.21x in H1 FY26 and further to 0.18x in FY26.

Direct expenses decreased by 0.8% QoQ, showing the success of our efficiency initiatives," the MD added.

Texmaco made continued progress in its infrastructure and railway systems businesses, securing multiple orders in signalling, electrification, and maintenance projects.

"Additionally, we expanded our presence in overhead electrification (OHE) and power supply maintenance services, with a cumulative portfolio of 3,703 TKM. The company also secured significant wagon orders from private sector customers, further strengthening its freight mobility business and execution pipeline," the MD added.

Indrajit Mookerjee, Executive Director and Vice Chairman at Texmaco Rail & Engineering, “For FY2026, Texmaco reported revenue from operations of ₹4,377 crore, a decline of 14.3% YoY, in a challenging market environment. From the profitability perspective, EBITDA for the year was ₹450 crore, with an EBITDA margin of 10.3%, while profit after tax (PAT) was ₹194 crore, translating into a margin of 4.4%.

Performance during the year was impacted by lower wagon production arising from continued supply chain issues and lower revenues in Infra-Rail and Green Energy (Kalindee). However, the Infra – Electrical (Bright Power) business has grown by 66.1% to revenues of ₹610 crore, with an EBIT margin of 10.8%. Overall, as of March 31, 2025, the order book was ₹5,408 crore.

Operationally, Texmaco delivered 2,196 freight cars during Q4 Q4FY26, while foundry division volumes totalled 8,964 MT.

For the full year, freight car deliveries reached 8,372 units, and the foundry division achieved 34,301 MT in sales. The performance was impacted by global supply chain disruptions and US tariff impositions.

"A significant milestone during the quarter was the formalisation of the joint venture with Rail Vikas Nigam Limited (RVNL), which is expected to increase the company's participation across rolling stock, rail EPC, maintenance, and integrated rail infrastructure opportunities in Indian and international markets," Mookerjee added.

The partnership combines Texmaco’s manufacturing capabilities with RVNL’s infrastructure execution expertise and supports the company's long-term growth strategy across the rail ecosystem.

Several companies, such as RVNL and IRCTC, are yet to report their financial results for the quarter and year ended March 31, 2026.