Texmaco Rail, IRCTC, RVNL Jump as Rail Fare Hike, Aadhaar Rule Boost Investor Sentiment

Railway-related stocks rose on June 25 after Indian Railways announced a minor fare increase and stricter Aadhaar-based rules for Tatkal ticket bookings. Texmaco Rail & Engineering share price led the rally with a gain of over 4%. Shares of Rail Vikas Nigam, IRCTC, and Jupiter Wagons were also up by 1-2%. IRCON International rose 0.82% to ₹202.45, and RITES Ltd climbed 2.39% to ₹282.45.

Fare Revision from July 1, 2025

The fare hike, effective July 1, 2025, marks the first increase in several years. Fares will rise by 1 paise per km for non-AC Mail/Express trains and 2 paise per km for AC classes. However, there will be no change in fares for suburban trains and second-class travel up to 500 km. For longer second-class journeys, the increase will be just half a paise per km. Monthly season ticket prices will remain unchanged.

New Aadhaar Rules for Tatkal Bookings

Starting July 1, only Aadhaar-verified users will be allowed to book Tatkal tickets on IRCTC’s website or mobile app. From July 15, OTP-based Aadhaar authentication will be mandatory. These changes aim to prevent ticket fraud and ensure the Tatkal scheme benefits genuine passengers.

Read More: How to Buy NSE Unlisted Shares in India?

Recent Government Moves to Boost Indian Railways

The Indian government has taken several steps to enhance the railway sector. 

• In the Union Budget 2025–26, it allocated ₹3.02 lakh crore (approximately US$34.7 billion) to the Ministry of Railways — a significant increase from ₹2.52 lakh crore (US$30.3 billion) in 2024–25.
• Additionally, starting November 1, 2024, Indian Railways reduced the Advance Reservation Period (ARP) for train bookings from 120 days to 60 days, aiming to improve efficiency and reduce last-minute cancellations.

Conclusion

Indian Railways' decision to raise fares and tighten Tatkal booking rules has positively impacted railway stocks. The move is seen as part of broader reforms to improve transparency and operational efficiency.

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