The Indian railway sector is poised for significant growth in the coming years, making it an attractive opportunity for investors. Backed by a USD 107 billion investment plan under the National Rail Plan 2030, the demand for locomotives and rolling stock is expected to rise sharply between 2026 to 2031. Moreover, passenger traffic is expected to rise by 29% between 2021 and 2031, and freight movement is forecasted to surge by nearly 157% by 2031.
This indicates that railway stocks offer a compelling case for investment, especially when evaluated based on their 5-year Compound Annual Growth Rate (CAGR). In this article, we will sort the best railway stocks for you based on 5Y CAGR.
| Name | Ticker | Market Cap (₹ Crore) | 5Y CAGR | Debt to Equity Ratio |
| Jupiter Wagons Ltd | JWL | 14570.90 | 88.04 | 0.21 |
| Titagarh Rail Systems Ltd | TITAGARH | 11515.95 | 77.20 | 0.07 |
| BEML Ltd | BEML | 16831.88 | 41.17 | 0.03 |
| Texmaco Rail & Engineering Ltd | TEXRAIL | 5675.63 | 40.56 | 0.25 |
| Oriental Rail Infrastructure Ltd | ORIRAIL | 1161.32 | 31.83 | 0.81 |
Note: The list of best railway stocks above is ranked based on their 5-year CAGR, and the data is as of August 22, 2025.
Jupiter Wagons has won significant orders and maintains a robust market position, with a market capitalisation of around ₹14,471 crore. Its subsidiary recently secured a ₹215 crore Letter of Intent to supply 5,376 wheelsets for Vande Bharat trains. This has strengthened its role in India’s high-speed rail sector.
Although standalone revenue for Q1 FY26 dropped 53% to ₹425 crore due to wheelset supply issues, the company is poised for growth due to recent contracts and a strong order book.
Titagarh Rail Systems has secured a ₹467.25 crore LOI from Garden Reach Shipbuilders to build two coastal research vessels for the Geological Survey of India. It also won a ₹91.12 crore order from Banaras Locomotive Works for WAG-9HC locomotive shell assemblies. The company is expanding into railway signaling and safety systems and has announced that its 28th Annual General Meeting is set for September 15, 2025.
BEML secured a ₹1,888 crore order from Integral Coach Factory for 600 LHB coaches and a ₹282 crore Defence Ministry order for High Mobility Vehicles. It partnered with IIT Madras startup TuTr Hyperloop to develop India’s first indigenous hyperloop system.
In Q4 March 2025, BEML’s net profit rose 12% to ₹287.5 crore, with revenue up 9.1% to ₹1,652.5 crore. The company approved a 1:2 stock split and is building a new rail facility in Madhya Pradesh, after recruiting 682 employees.
Texmaco Rail won a ₹44.04 crore order from Mumbai Railway Vikas Corporation for a Central Railway traction project, due in 18 months. It also secured an international order from Cameroon’s CAMALCO SA for 560 open-top wagons with a long-term maintenance contract.
In Q4 FY25, revenue rose 17.5% to ₹1,346.4 crore, but net profit fell 12% to ₹40 crore. Q1 FY26 saw a 21.1% revenue drop to ₹918.62 crore and a 35.2% profit decline. Its stock gained 32.5% in three months.
Oriental Rail secured a ₹60 crore order through its subsidiary Oriental Foundry from the Ministry of Railways to supply Constant Side Bearers for Broad Gauge Bogie Wagons, with formal confirmation pending. Earlier in 2025, it won a ₹42.89 crore contract from Rail Coach Factory to supply seat sets for Vande Bharat Express, with delivery by July 2026. The company’s stock has seen short-term gains despite high debt, with a market cap around ₹1,165 crore. The 34th AGM is set for September 4, 2025.
Read more: SIP Calculator: How a ₹15,000 Monthly SIP Can Build ₹10 Crore for Retirement.
The best railway stocks for September 2025, ranked by 5-year CAGR, include Jupiter Wagons, Titagarh Rail Systems, and BEML, among others. Jupiter Wagons leads with an 88.04% CAGR and a robust order book, despite recent revenue dips. To capitalise on this opportunity, investors should consider opening a demat account to easily buy and hold these stocks, benefiting from India’s expanding rail infrastructure.
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.
Published on: Aug 25, 2025, 2:47 PM IST
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