News

Railway stocks are back in focus as a sharp sector-wide rally lifted several rail-linked counters by up to 12 per cent in Tuesday’s session. Shares of IRFC, IRCTC, Jupiter Wagons, Rail Vikas Nigam (RVNL), RailTel, Texmaco Rail, Titagarh Rail Systems, IRCON and RITES all witnessed strong buying interest, marking a notable comeback for a sector that has struggled for much of 2025.

The rally is being driven by a mix of stock-specific triggers, fresh order wins, corporate developments and rising expectations ahead of Union Budget 2026, which is now just weeks away.

Among the top gainers, Jupiter Wagons surged over 12 per cent, leading the pack. The stock gained momentum after its European arm, TATRAVAGONKA a.s., converted 28.72 lakh convertible warrants into equity shares, reinforcing confidence in the company’s long-term growth prospects. The move signals continued promoter and strategic investor interest in the business.

RailTel Corporation of India jumped more than 8 per cent, while IRCON International rallied nearly 12 per cent. Rail Vikas Nigam Ltd (RVNL) also saw solid gains of over 4 per cent after receiving a Letter of Award worth Rs 165 crore from North Eastern Railway for the construction of a major bridge substructure over the Gandak river. The project, aligned with RDSO’s 25-ton axle load standards, strengthens RVNL’s already robust order book.

RITES Ltd climbed over 6 per cent after the company announced it had received a $35.2 million contract from Ndalama Capital (Pty) Ltd., South Africa, for the supply and commissioning of in-service diesel electric locomotives. The international order reinforces RITES’ export capabilities and revenue visibility.

Titagarh Rail Systems gained nearly 4 per cent following a significant technological milestone. The company rolled out its first driverless ‘Made in India’ trainset for the Gujarat Metro Rail Corporation.

The advanced stainless-steel metro trains will operate on Ahmedabad–Gandhinagar metro corridors and feature modern safety systems, driverless operations, and inclusive passenger design. This development highlights India’s growing capabilities in high-end rail manufacturing.

Texmaco Rail & Engineering advanced close to 6 per cent amid broader sector strength and continued interest in railway infrastructure plays.

IRCTC, meanwhile, edged higher despite an important regulatory update. The National Stock Exchange announced that F&O contracts in IRCTC will be phased out, with no new expiry month contracts issued after the current series ends. While this may impact derivatives traders, IRCTC remains a widely tracked stock in the cash market.

Adding to the positive sentiment, Western Railway awarded a Rs 6.70 crore electrification contract, and corporate restructuring at a railway-linked subsidiary also kept investors engaged.

The broader rally follows strong gains on Monday as well, when several railway stocks jumped up to 13 per cent, driven by growing optimism ahead of the Union Budget 2026.

Markets are expecting a 10–12 per cent increase in railway capex to around Rs 2.76 trillion, with focus areas likely to include Vande Bharat sleeper trains, network expansion, and enhanced safety through the Kavach system.