Railway Stocks Rally: Why RailTel, RVNL, Ircon and Others Are Leading the Charge?

India’s railway stocks have been moving sharply upward over the past 5 trading days. Companies such as Ircon International, RailTel Corporation, Texmaco Rail, Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC), and Titagarh Rail Systems have caught the attention of investors with gains reaching as high as 15%.

This surge is backed by solid factors like fresh government contracts, increased capital expenditure, and a generally optimistic outlook on the growth of India’s rail infrastructure. 

How Each Railway Stock Has Performed

Ircon International

Ircon International share price rose nearly 15% in just 5 days. Over the last month, the stock has climbed about 39%, showing strong momentum. In the past 6 months, it gained slightly by about 1%, but over the past year, it recorded a decline of 7%. For the year 2025 so far, it has gained roughly 1%. The company currently holds a market capitalisation of around ₹20,470 crore. Its 52-week price range lies between ₹134.24 (low) and ₹351.60 (high).

RailTel Corporation

RailTel’s share price gained about 13% in the last 5 days, helped by the government’s push toward digital infrastructure within the railway system. Over the past month, the stock soared 41%, and for the year to date, it has increased 12.18%. RailTel’s long-term performance has also been positive, with a gain of 27.73% over the last year. The company’s market capitalisation stands at approximately ₹14,240 crore.

Texmaco Rail

Texmaco Rail share price has seen a 7.1% increase over the last 5 days and a 24.78% rise over the past month. This improvement was largely driven by a new order worth ₹122 crore for traction transformers from the Mumbai Railway Vikas Corporation. Despite this recent growth, the stock has been under pressure over the past 6 months, dropping 20.24%, and it is also down 11.35% so far in 2025. 

Rail Vikas Nigam Limited (RVNL)

RVNL’s share price increased by 2.7% over the last 5 days following a Memorandum of Understanding (MoU) with Texmaco Rail for cooperation in manufacturing and rail innovation. In the past month, RVNL’s stock price rose 22.06%. Although the stock has remained relatively stable over the last 6 months, dropping just 2.36%, it provided a strong yearly return of 22.50%. Year to date, it has gained 1.12%. 

Titagarh Rail Systems

Titagarh Rail Systems share price increased 3.85% in the past 5 days and a 28.53% rise over the past month. However, it has struggled over a longer period, with the stock falling more than 20% over the last 6 months and underperforming in 2025. The company plays a vital role in India’s metro and coach manufacturing industry. 

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What Is Driving This Railway Stock Rally?

The main reason behind this rally is the strong flow of government orders and contracts to these companies. For instance, Ircon International recently secured a large Engineering, Procurement, and Construction (EPC) contract worth ₹1,068 crore from East Central Railway. Similarly, RITES signed an MoU with Shree Cement, and Texmaco Rail won significant transformer orders. These major contracts provide confidence to investors about the future growth and profitability of these railway companies.

The government’s capital expenditure boost and infrastructure plans are fueling the momentum further. Investors are optimistic that these companies will benefit significantly from the ongoing modernisation and expansion of India’s rail network.

Conclusion

The surge in railway stocks over the past 5 days is a clear indication of the market’s positive response to increased government support and investments in rail infrastructure. Companies like Ircon, RailTel, RVNL, and Texmaco Rail are well-positioned to capitalise on this growth, making railway stocks an attractive segment for investors looking for opportunities in India’s infrastructure space. 

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.