Railway Stocks Rally: RailTel, RITES, IRCON Share Price Jump Up to 30% in May on Strong Q4 FY25 and Orders 

While defence stocks are drawing strong investor attention due to rising geopolitical tensions between India and Pakistan, railway stocks have quietly joined the rally. After a brief correction in late 2024, many railway stocks are now back in demand thanks to strong order inflows and solid quarterly results. 

May Sees Big Gains in Railway PSUs 

Railway sector stocks like RailTel, RITES, IRCON, RVNL, BEML, IRFC, and IRCTC have surged by up to 30% in May. These gains come after a previous bull run between May 2023 and July 2024, which saw stocks hit high valuations before cooling off due to a slowdown in orders. 

Also Read: Vesuvius India Announces 10:1 Stock Split: Set June 10 as Record Date!   

RailTel Leads the Pack with 30% Jump 

RailTel Corporation of India has delivered a 30% gain in May, rising from ₹312 to ₹384 — its biggest monthly rise since January 2024. The boost came after a ₹22.75 crore work order from North Central Railway and strong March quarter results. The company posted a 27.6% YoY profit growth for FY25 and has set a target of 25–30% revenue and profit growth for FY26, supported by order inflows of ₹3,150 crore. 

RITES Posts Strong Order Book, Stock Up 27% 

RITES, a top engineering consultancy firm, saw its stock price surge 27% in May. The company secured over 150 orders worth ₹1,418 crore in Q4FY25, taking its total order book to a record ₹8,877 crore. Its Q4 net profit grew 6.2% YoY to ₹141 crore. 

IRCON Gains 23% on Back-to-Back Orders 

IRCON International's shares have jumped 23% in May, supported by major orders. On May 6, it bagged a ₹187 crore order from Kerala State IT Infrastructure, followed by a ₹458 crore civil works project for a hydro power plant in Arunachal Pradesh. An earlier contract was also revised upward by ₹59 crore. 

RVNL, IRFC, BEML and IRCTC are Also in the Green 

• RVNL share price gained 17% after multiple Indian Railways orders, including a ₹116 crore deal with Central Railway. 

• IRFC share price rose 12% in May, following government approval to raise ₹10,000 crore via deep-discount bonds and a ₹5,000 crore loan bid for NTPC. It posted a Q4 net profit of ₹1,682 crore. 

• BEML share price gained 16% and IRCTC added 8% to their stock value during the month. 

Conclusion 

Railway PSU stocks are regaining investor confidence, with strong order books and steady earnings growth driving the rally in May. As long as this momentum in orders and profitability continues, the railway segment may remain in the spotlight alongside defence stocks. 

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.