Best Railway Stocks for June 2025 Based on 5-Yr CAGR: Rail Vikas, IRCTC, Jupiter Wagons & More

India’s railway sector is on the fast track to modernisation, backed by strong government support, increased budget allocations, and infrastructure upgrades. This has sparked investor interest in railway-related companies across manufacturing, logistics, and technology. In this article, find the best railway stocks in June 2025, based on 5yr CAGR and other parameters. 

Best Railway Stocks for June 2025 - 5yr CAGR Basis

Note: The best railway stocks list here is as of May 29, 2025. The stocks are sorted as per the 5-Year CAGR.

Overview of the Best Railway Stocks for June 2025

1. Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL), incorporated in 2003 by the Government of India, is a key player in executing a wide range of rail infrastructure projects entrusted by the Ministry of Railways.

For the financial year ended March 31, 2025 (FY25), the company reported revenue from operations of ₹19,923.02 crore, compared to ₹21,878.53 crore in FY24, indicating a year-on-year decline. Similarly, the net profit after tax stood at ₹1,281.52 crore in FY25, down from ₹1,550.87 crore in FY24, reflecting a dip in profitability during the year.

Key Metrics:

• ROCE: 14.57%
• ROE:19.69%

2. Indian Railway Catering and Tourism Corporation Ltd (IRCTC)

Established in 1999, IRCTC is a Mini Ratna (Category I) Central Public Sector Enterprise. It holds the exclusive authorisation from the Government of India to offer online railway ticketing, catering services, and packaged drinking water at railway stations and aboard trains across the country.

For the full year ended March 31, 2025, IRCTC clocked a total income of ₹4,90,385.13 lakh, compared to ₹4,42,469.12 lakh in FY 2023-24. The net profit after tax from continuing operations was ₹1,31,490.24 lakh, a significant increase from ₹1,11,107.79 lakh in the previous year.

Key Metrics:

• ROCE: 43.78%
• ROE:38.93%

3. Ircon International Ltd

Ircon International Limited (IRCON) began its operations in 1976 as a railway construction company and has since evolved into an integrated engineering and construction PSU. Since 1985, the company has expanded its presence across multiple sectors, including railways, highways, and other large-scale, technologically complex infrastructure projects.

In FY25, IRCON reported revenue from operations of ₹10,759.6 crore, compared to ₹12,513.7 crore in FY24. Its Profit After Tax stood at ₹727.8 crore in FY25, down from ₹929.5 crore in the previous financial year.

Key Metrics:

• ROCE: 11.22%
• ROE:16.70%

4. BEML Ltd

BEML Ltd produces a diverse range of heavy earthmoving machinery for the mining and construction sectors, along with vehicles for the defence forces and coaches for metro systems and Indian Railways.

In FY25, BEML reported revenue from operations of ₹4,02,222 lakh, compared to ₹4,05,432 lakh in FY24. Its Profit After Tax stood at ₹29,252 lakh in FY25, up from ₹28,177 lakh in the previous financial year.

Key Metrics:

• ROCE: 12.86%
• ROE:11.08%

5. Jupiter Wagons Ltd

Jupiter Wagons Limited specialises in designing, manufacturing, and supplying railway wagons, components, and transport equipment for the rail industry across India and international markets. For FY25,the company reported a consolidated total income of ₹4,008 crore, marking a 9.3% year-on-year increase. The consolidated PAT for the same period stood at ₹380 crore, reflecting a growth of 14.9% YoY.

Key Metrics:

• ROCE: 33.01%
• ROE:27.23%

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

Note: The best railway stocks list here is as of May 29, 2025. The stocks are sorted as per the net profit margin.

Best Railway Stocks in India in June 2025 – Return on Investment Basis

Note: The best railway stocks list here is as of May 29, 2025. The stocks are sorted as per the return on investment.

Key Factors to Consider Before Investing in Railway Stocks in India

• Government Policies and Reforms: Railways in India are largely controlled by the government. Keep an eye on policy announcements, budget allocations, privatisation efforts, and Public-Private Partnership (PPP) initiatives. Favourable reforms can boost sectoral growth.
• Order Book Strength: Railway PSUs (like RVNL, IRCON & more) often work on large infrastructure projects.
• Revenue Diversification: Companies with income from multiple sources (e.g., construction, consultancy, catering, ticketing, manufacturing) are better positioned to manage risks and sustain performance across cycles.
• Financial Performance: Analyse trends in revenue, profitability, margins, and debt levels.
• Capex and Expansion Plans: Capital expenditure plans, both from the company and the Ministry of Railways, signal future business opportunities. Firms aligned with modernisation, electrification, and high-speed rail segments may benefit more.

Also Read: Best Battery Stocks in June 2025!

Conclusion

Apart from the railway stocks in India mentioned above, there can be other companies working in the sector. Investing in railway stocks can offer returns, but it's essential to choose them based on your financial goals, risk tolerance, and investment horizon. Seeking guidance from a financial advisor can help you build a strategy tailored to your objectives.

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.