Best Railway Stocks in India for May 2025: Jupiter Wagons, Titagarh Rail and More Based on 5-Year CAGR

India’s railway network is often considered the backbone of the nation’s economy. Spanning thousands of kilometres, it ranks as the fourth-largest rail system in the world, after the US, China, and Russia. Operated under the monopoly of the Railway Board, the Indian Railways is known for its affordability and efficiency, making it the most popular option for long-distance travel across the country.

According to the Indian Railways 2023 report, the sector has ambitious plans to begin exporting indigenously manufactured Vande Bharat trains to regions like Europe, South America, and East Asia by 2025-26, highlighting a major push to establish India’s footprint in the global rail market.

Now, let’s take a look at the leading railway stocks in India for May 2025, ranked based on their 5-year compound annual growth rate (CAGR), market capitalisation, and net profit margin.

Best Railway Stocks in India in May 2025 – 5yr CAGR Basis

Note: The best railway stocks list here is as of April 30, 2025. The stocks are sorted as per the 5-Year CAGR, and the market cap is above ₹1,000 crore. 

Read More, Best PSU Stocks in May 2025 Based on 5-Yr CAGR: HAL, RVNL, BEL, Power Grid & More. 

Overview of the Best Indian Railways Stocks

1. Jupiter Wagons Limited

Jupiter Wagons Limited specialises in designing, manufacturing, and supplying railway wagons, components, and transport equipment for the rail industry across India and international markets.

In the third quarter of FY24, Jupiter Wagons Limited posted a revenue of ₹1,000.04 crore, an increase from ₹973.63 crore in the second quarter. The company’s net profit rose to ₹97.86 crore, up from ₹88.62 crore in the previous quarter. For the full financial year 2023-24, Jupiter Wagons recorded total revenue of ₹3,641.25 crore and a net profit of ₹332.80 crore.

Key metrics:

• Earning per Share (EPS): ₹8.95
• Return On Equity (ROE): 14.85%

2. Titagarh Rail Systems

Titagarh Rail Systems specialises in innovative transport engineering, producing semi-high-speed trains, metro rail solutions, passenger coaches, and propulsion systems.

During Q3 FY24, the company posted a revenue of ₹902.18 crore, a decline from ₹1,056.95 crore in Q2 FY24. Its net profit also dipped to ₹68.94 crore from ₹85.12 crore in the previous quarter. For the full financial year 2023–24, Titagarh Rail Systems reported a total revenue of ₹3,853.30 crore and a net profit of ₹296.91 crore.

Key metrics:

• EPS: ₹22.93
• ROE: 13.01%

3. Ramkrishna Forgings Ltd

Ramkrishna Forgings Ltd is engaged in the production and supply of forged, machined, and fabricated parts catering to a wide range of sectors such as automotive, railways, agriculture, construction, mining, oil & gas, power, and general engineering.

In December 2024, the company recorded a revenue of ₹952.72 crore, marginally higher than ₹952.32 crore reported in September 2024. For the full financial year 2023–24, the total revenue reached ₹3,489.61 crore. Net profit for the December quarter stood at ₹99.55 crore, a decline from ₹182.80 crore in the previous quarter, while the annual net profit for FY23–24 came in at ₹326.07 crore.

Key metrics:

• EPS: ₹24.46
• ROE: 15.19%

4. Texmaco Rail & Engineering Ltd

Texmaco Rail & Engineering Ltd, a part of the Adventz Group, is an engineering and infrastructure company engaged in the production of rolling stock, hydro-mechanical systems, steel castings, and execution of railway EPC projects.

In December 2024, the company posted a revenue of ₹1,085.88 crore, slightly down from ₹1,116.29 crore in September 2024. For the full year FY23–24, the total revenue stood at ₹3,502.87 crore. Net profit for the December quarter was ₹47.02 crore, compared to ₹48.45 crore in the previous quarter, while the company reported a full-year profit of ₹112.69 crore.

Key metrics:

• EPS: ₹4.57
• ROE: 7.06%

5. Oriental Rail Infrastructure Ltd

Oriental Rail Infrastructure Ltd is involved in producing, purchasing, and selling various products including Recron, seats and berths, Compreg boards. The company also trades in timber wood and related products.

In December 2024, Oriental Rail Infrastructure Ltd reported a revenue of ₹25.10 crore and a net profit of ₹1.37 crore, compared to ₹45.79 crore in revenue and ₹3.04 crore in net profit in September 2024. For the full financial year 2023-24, the company recorded a total revenue of ₹171.58 crore and a net profit of ₹12.01 crore.

Key metrics:

• EPS: ₹1.61
• ROE: 4.01%

Best Railway Stocks in India in May 2025 – Market Cap Basis

Note: The best railway stocks list here is as of April 30, 2025. The stocks are sorted as per the market cap, and the market cap is above ₹1,000 crore. 

Best Railway Stocks in India in May 2025 – Net Profit Margin Basis

Note: The best railway stocks list here is as of April 30, 2025. The stocks are sorted as per the net profit margin, and the market cap is above ₹1,000 crore. 

Important Factors to Keep in Mind Before Investing in Railway Stocks in India

Before diving into railway stocks, investors should take the following factors into account:

• Government Regulations: As Indian Railways is state-owned, its operations are largely influenced by government decisions regarding infrastructure development, pricing policies, and privatisation efforts. Keeping track of such policy shifts is essential. 
• Company Financials: Examine the financial health of railway-related companies by looking into their revenue trends, profit margins, and debt-to-equity ratios to ensure long-term viability. 
• Technological Progress: Advancements in automation, digital tools, and electrification can significantly improve operational efficiency and safety, which may positively affect company performance. 
• Risk Considerations: Be mindful of risks such as policy changes, operational disruptions, and global or local geopolitical tensions that may affect the sector’s stability. 
• Market Demand: The performance of railway stocks often correlates with rising demand for freight and passenger transport, influenced by economic growth, urbanisation, and trade volumes. 

Conclusion

Railway stocks can be a rewarding investment, but they should be selected based on your individual financial objectives, risk appetite, and investment timeline. Consulting a financial advisor can help create a strategy that aligns with your goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                            

Investments in securities market are subject to market risks, read all the related documents carefully before investing.