Indian Railways is set to receive its highest-ever budget in 2026–27, with capital expenditure expected to touch ₹2.76 trillion, according to Mint reports. This marks a 12% rise from last year, driven by rapid expansion in infrastructure, electrification, and modern train manufacturing.
With plans to introduce 300–400 Vande Bharat trains, procure up to 8,000 new trains, and construct 50,000 km of new tracks, the sector is poised for one of its biggest expansion phases. As freight corridors near completion and safety investment doubles, several railway-sector stocks are now attracting strong investor interest.
| Stock | Earning Power | 5Y CAGR (%) | Cash Dividend Paid (₹) |
| BEML Ltd | 7.58 | 42.20 | 85.12 |
| Titagarh Rail Systems Ltd | 12.09 | 74.87 | 10.77 |
| Oriental Rail Infrastructure Ltd | 9.45 | 26.56 | 0.61 |
| Texmaco Rail & Engineering Ltd | 9.96 | 37.58 | 19.98 |
| Jupiter Wagons Ltd | 13.91 | 75.04 | 55.14 |
Note: These railway stocks have been shortlisted based on their % away from 52-week low as of December 8, 2025.
BEML’s order book is set for strong expansion in FY26. The company currently has an order inflow of ₹3,000 crore and an existing order book of over ₹16,700 crore, driven largely by rail and metro projects (65%), followed by defence (26%) and mining (9%). For FY26, BEML aims to increase new orders by 50–60% of the current book and close the year with a targeted order book of ₹22,000 crore, supported by a more balanced sector mix.
Titagarh Rail has outlined a strong multi-year growth outlook supported by an order book of ₹15,077 crore, along with an additional ₹13,326 crore through its joint venture. The company is expanding its metro coach and wagon manufacturing capacity at its Kolkata and Bharatpur facilities while progressing on key projects such as the Vande Bharat Sleeper and Mumbai Metro Lines 5 and 6. Backed by a net-debt-free balance sheet and automation-led efficiency measures, Titagarh is targeting revenue growth of over 30%.
Oriental Rail, the only listed company in organised railway seats and berths, holds a 30% market share and has a 24-lakh-metre yearly Rexine capacity. It is an RDSO-certified Part I vendor with over 1,000 employees and a strong order book of ₹2,255.69 crore.
It has also partnered with HUM Industrials to install the HUM Boomerang real-time monitoring system in freight wagons. This aims to create Smart Wagons in India, a market opportunity of nearly ₹20,000 crore.
Texmaco has a strong order book of ₹6,367 crore, driven by solid demand in India and rising export opportunities. The company expects exports of components and railway castings to grow 3–5 times in the next 2–3 years. It is also working with several global and domestic partners, including Touax, Nymwag, Wabtec, Saira Asia, Nevomo, Trinity and RVNL. These collaborations focus on freight leasing, manufacturing, braking systems, interiors, high-speed rail, infrastructure, automation, AI and green technologies.
Jupiter Wagons reported strong growth with revenue rising 31% to ₹890 crore and an order book of ₹6,200 crore. The company plans a 20% capacity expansion in FY26 and has entered the electric cargo vehicle market through Jupiter Electric. It is focusing on rolling stock, brake systems, exports, and backward integration to improve margins. With solid demand, diversification, and expansion plans, Jupiter Wagons is well-positioned for future growth, though long-term performance will depend on execution.
| Stock | Market Cap (₹ Cr) | EPS (Q) | ROE (%) | PB Ratio (times-x) |
| BEML Ltd | 14,244.92 | 5.77 | 10.53 | 4.93 |
| Jupiter Wagons Ltd | 11,336.22 | 1.10 | 17.38 | 4.10 |
| Titagarh Rail Systems Ltd | 10,626.43 | 2.73 | 11.76 | 4.28 |
| Texmaco Rail & Engineering Ltd | 4,990.19 | 1.62 | 9.30 | 1.76 |
| Oriental Rail Infrastructure Ltd | 969.00 | 1.59 | 9.23 | 2.79 |
Read more: New Labour Codes 2025: How Does the Reskilling Fund Help Retrenched Employees?
India’s railway sector is heading into one of its strongest growth cycles, supported by record government spending and massive expansion plans. Companies like BEML, Titagarh Rail, Oriental Rail, Texmaco and Jupiter Wagons are well-placed to benefit, backed by large order books, strong earnings power and strategic diversification.
While the long-term outlook appears promising, actual returns will depend on execution, demand stability and project timelines. Investors with a demat account should assess fundamentals carefully before making decisions.
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: Dec 9, 2025, 10:54 AM IST
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