All Aboard India’s Railway Tech Boom: 5 Stocks to Watch

India is on the fast track to transform its railway system — with technology leading the way. As the country focuses on safer, faster, and smarter trains, tech upgrades like digital signalling, automation, and indigenous systems such as KAVACH are coming into focus. This shift is creating major opportunities for companies working on rail electronics, signalling, and control systems.

Here are five Indian companies well-positioned to benefit from this transformation.

What Are the Top Railway Companies Investing in New Technologies?

Here is a breakdown of top railway stocks to watch:

Note: The stocks mentioned above have been selected and sorted based on market cap as of July 3, 2025.

Overview of Top Companies Poised to Ride the Railway Tech Boom

1. Siemens India

Siemens may not be a pure rail-tech player, but its mobility segment is gaining steam. It is working on advanced locomotives, signalling systems, and metro electrification. Mobility orders tripled in FY25, and the company is carefully expanding its rail footprint with a long-term view.

2. HBL Engineering

Formerly HBL Power Systems, HBL Engineering is the first private company to get RDSO certification for the latest KAVACH system. While FY25 sales dropped due to tender delays, the company has a strong order book of ₹3,764 crore and expects a big rebound in FY26. HBL is betting on advanced rail electronics while continuing its work in defence and battery tech.

3. Jupiter Wagons

JWL is a leader in freight wagon production and is investing in a major wheel and axle project in Odisha. It aims to produce 10,000 wagons in FY26. Despite share price drops due to supply chain issues, the company’s long-term vision is intact, with goals to double revenue by FY28.

4. RailTel Corporation

A Navratna PSU, RailTel has become a vital tech partner for Indian Railways. It handles digital projects like electronic interlocking, tunnel communication, and LTE-R setups. It is also actively working on the KAVACH safety system. With a ₹4,750 crore order book and increasing revenues from rail projects, RailTel is set for strong and stable growth.

5. Kernex Microsystems

Kernex is a specialist in railway safety systems. It manufactures the TCAS (KAVACH) system and has ramped up its production capacity. Its FY25 revenues grew sharply to ₹9,450 crore. With large pending bids and upcoming product launches, Kernex is pushing ahead — though it remains vulnerable to project delays.

Read more: Indian Railways Launches ‘RailOne’ Super App for Passengers.

Conclusion

India’s railway tech journey is just beginning. While excitement is high, investors should stay grounded. Look beyond big orders — focus on balance sheets, execution ability, and sustainable margins. Rail tech may not be flashy like IT or EVs, but its impact could be far-reaching for the nation — and your portfolio.

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 the securities market are subject to market risks. Read all the related documents carefully before investing.