India’s railway sector is undergoing a significant transformation, driven by government reforms, infrastructure modernisation, and Make-in-India initiatives.
A testament to this progress is India’s emergence as a global leader in railway locomotive manufacturing achieving a record production of 1,681 locomotives in FY 2024–25. This surpasses the combined locomotive output of the United States, Europe, South America, Africa, and Australia, reaffirming India’s rising dominance in the global railway space.
This momentum has created attractive opportunities for companies involved in rolling stock, engineering, and transport manufacturing.
Let's take a look at the best railway stocks in August 2025, based on key metrics such as 5-year CAGR, debt-to-equity ratio, and net profit margin.
| Name | Market Cap (₹ Cr) | PE Ratio | 5Y CAGR (%) |
| Jupiter Wagons Ltd | 15,267.07 | 39.94 | 92.23 |
| Titagarh Rail Systems Ltd | 12,185.96 | 44.09 | 84.87 |
| Ramkrishna Forgings Ltd | 11,257.76 | 27.12 | 83.60 |
| Texmaco Rail & Engineering Ltd | 6,323.17 | 25.37 | 45.89 |
| BEML Ltd | 17,956.09 | 61.38 | 45.03 |
Note: The list of best railway stocks above is ranked based on their 5-year CAGR, and the data is as of July 25, 2025.
Kolkata-based Jupiter Wagons is a private manufacturer of railway freight wagons and transport equipment.
The company continues to scale its wheel business achieving over ₹300 crore in turnover this year, with plans to double that figure by FY26. For FY26, Jupiter Wagons is targeting ₹5,000 crore in revenue with an EBITDA margin exceeding 14%.
Key Metrics
Titagarh Rail Systems Ltd (TRSL) is a leading Indian manufacturer of railway wagons and passenger coaches, with over four decades of legacy.
The company has received a Letter of Advance Acceptance (LOA) from the Ministry of Railways for a ₹312 crore project. Established in 1997, TRSL also manufactures freight wagons and specialized rail systems, serving both domestic and international clients.
Key Metrics
Founded in 1981, Ramkrishna Forgings is a global player in the metal forming industry.
It supplies forged, machined, and fabricated components to sectors such as automotive, railways, mining, construction, oil & gas, and general engineering. The company is known for its robust product quality and diverse global customer base.
Key Metrics
Texmaco Rail, part of the Adventz Group, plays a vital role in India’s rail and infrastructure ecosystem. The company operates across freight cars, green energy, and rail/electrical infrastructure.
It has recently begun operations at a 10 MW solar power facility in Raipur, reflecting its commitment to sustainability and green energy adoption.
Key Metrics
BEML Ltd, a state-owned company, is involved in the manufacturing of heavy equipment for sectors like defence, rail, and mining. In June 2025, it secured a ₹293.82 crore order from the Ministry of Defence for the supply of 6x6 High Mobility Vehicles.
It also signed three licensing agreements with DRDO to manufacture next-gen systems for the Indian Army.
Key Metrics
| Name | Market Cap (₹ Cr) | PE Ratio | 5Y CAGR (%) | Debt-to-Equity |
| BEML Ltd | 17,956.09 | 61.38 | 45.03 | 0.03 |
| Titagarh Rail Systems Ltd | 12,185.96 | 44.09 | 84.87 | 0.07 |
| Jupiter Wagons Ltd | 15,267.07 | 39.94 | 92.23 | 0.21 |
| Texmaco Rail & Engineering Ltd | 6,323.17 | 25.37 | 45.89 | 0.25 |
| Ramkrishna Forgings Ltd | 11,257.76 | 27.12 | 83.60 | 0.45 |
Note: The list of best railway stocks above is ranked based on their Debt-to-equity ratio, and the data is as of July 25, 2025.
| Name | Market Cap (₹ Cr) | PE Ratio | 5Y CAGR (%) | Net Profit Margin (%) |
| Ramkrishna Forgings Ltd | 11,257.76 | 27.12 | 83.60 | 10.02 |
| Jupiter Wagons Ltd | 15,267.07 | 39.94 | 92.23 | 9.54 |
| BEML Ltd | 17,956.09 | 61.38 | 45.03 | 7.23 |
| Titagarh Rail Systems Ltd | 12,185.96 | 44.09 | 84.87 | 7.01 |
| Texmaco Rail & Engineering Ltd | 6,323.17 | 25.37 | 45.89 | 4.83 |
Note: The list of best railway stocks above is ranked based on their net profit margin, and the data is as of July 25, 2025.
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India’s railway sector is undergoing rapid modernisation, supported by strong government initiatives and a surge in domestic manufacturing. As this transformation unfolds, several companies in the rail ecosystem have shown strong fundamentals across growth, profitability, and financial stability.
The railway stocks highlighted in this list ranked by 5-year CAGR, debt-to-equity ratio, and net profit margin offer diverse exposure to this evolving sector. While these metrics provide useful insights, investors should consider their own financial goals and risk appetite, and perform thorough due diligence or consult a financial advisor before making investment decisions.
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.
Published on: Jul 25, 2025, 12:41 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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