Railway Stocks Stage Strong Comeback, ₹66,500 Crore Added Ahead Of Union Budget Hopes

New Delhi: India’s railway stocks have shown clear signs of recovery after remaining weak for several months. Over the past five trading sessions, the sector has witnessed a strong rally, adding more than Rs 66,500 crore to the combined market value of railway-linked companies. The renewed interest comes as investors position themselves ahead of the Union Budget and react to improving revenue signals from Indian Railways.

Long Phase of Weakness Before the Rally

Railway stocks had stayed under pressure for most of 2025 after the sector peaked in July 2024. Many stocks saw sharp corrections as high valuations cooled and expectations of aggressive policy support eased. This long period of decline made investors cautious. However, the recent bounce suggests a gradual return of confidence in the sector.

Top Gainers Lead the Recovery

The rally has been led by Jupiter Wagons, which emerged as the top performer with its shares jumping nearly 37 percent in just five days. Rail Vikas Nigam Limited also saw strong buying, rising around 27 percent during the same period. Indian Railway Finance Corporation gained more than 20 percent, reflecting renewed interest in railway financing and infrastructure plays.

Several other railway-related companies also posted solid gains. Shares of Ircon International, Titagarh Rail Systems, RailTel Corporation of India, Texmaco Rail & Engineering, RITES and BEML moved up sharply, many of them recording double-digit gains in a short span. Despite this strong rebound, most of these stocks are still trading below their earlier peak levels.

Fare Hike Boosts Revenue Outlook

One of the major triggers behind the rally has been Indian Railways’ decision to revise passenger fares from December 26. This is the second fare hike in FY26. Long-distance travel fares were increased by 1 to 2 paise per kilometre across ordinary, Mail and Express trains, while suburban services were excluded from the hike.

The fare revision is expected to generate nearly Rs 600 crore in additional revenue for the remaining part of the financial year. Passenger train operations continue to run at a loss, with fares estimated to be around 45 percent below cost. These losses are mainly covered through freight earnings. The recent fare increase is seen as a step towards improving revenue visibility and reducing losses, supporting better financial health for the railways.

Published on: Monday, December 29, 2025, 03:43 PM IST