Best Railway Stocks in India for February 2026: BEML, JWL, Titagarh, and More Based on 5Y CAGR

The Union Budget 2026–27 gave Indian Railways its highest-ever capital expenditure push. Finance Minister Nirmala Sitharaman allocated a total capex of ₹2,93,030 crore, up 10.5% from last year, including ₹2,78,030 crore as net budgetary support. The budget focused strongly on high-speed rail and safety, announcing seven new high-speed corridors covering 4,000 km and a rapid rollout of Kavach 4.0 across 40,000 km. It also backed freight corridors, rolling stock, and station redevelopment.

Best Railway Stocks for February 2026 Based on 5Y CAGR

Overview of Best Railway Stocks in India

BEML 

BEML expected its order book to rise from ₹16,300 crore to over ₹20,000 crore by year-end, led by the Rail and Metro segments. Management guided for around 20% growth in FY26, while acknowledging that 30% may be difficult. The company remained optimistic about stronger performance in the second half, supported by improving mining and defence demand.

Jupiter Wagons Ltd 

Jupiter Wagons highlighted strong growth potential beyond wagons, especially in electric vehicles and batteries. Management projected a 2,000% to 3,000% expansion in these businesses over the next two to three years, driven by domestic and global demand. This signals JWL’s ambition to evolve into a broader mobility manufacturing player. Investors will track execution, profitability, and scalability.

Titagarh Rail Systems Ltd 

Titagarh booked fresh orders worth around ₹2,500 crore across passenger and freight rail segments, taking its total order book to nearly ₹26,000 crore. A large portion now comes from passenger rail, strengthening long-term revenue visibility. The company is also ramping capacity sharply, aiming to expand passenger coach production from 12 to 120 cars annually, with further scale-up plans underway.

Ramkrishna Forgings Ltd 

Ramkrishna Forgings guided for 10% to 15% top-line growth in FY26 and FY27, with a similar CAGR expected over the next three years. Management remained optimistic about railway-led demand, particularly in the passenger segment, where it expects around ₹2,000 crore in sales potential. The company is positioned as a component and manufacturing beneficiary of India’s railway expansion.

Texmaco Rail & Engineering Ltd 

Texmaco reported strong order inflows from domestic and overseas markets, strengthening its position in freight rolling stock. The company secured multiple Indian Railways orders aligned with infrastructure expansion and also grew internationally through a 20-year maintenance contract in Africa and traction orders in the Middle East. With rising rail capex, Texmaco’s outlook depends on execution, margins, and working capital.

Best Railway Stocks for February 2026 Based on PE Ratio and Shareholder Value

Best Railway Stocks for February 2026 Based on D/E Ratio and Net Profit Margin

Read more: Best Semiconductor Stocks for February 2026: BEL, Dixon Tech, Polycab India, and More – Based on 5-Yr CAGR.

Conclusion

With record railway capex in Budget 2026–27, the sector remained a strong long-term theme for investors. Stocks like Titagarh Rail Systems and Jupiter Wagons stood out on 5-year growth, while BEML offered a rail-and-defence-linked order book story. Ramkrishna Forgings and Texmaco added diversification through components and freight wagons. However, valuations and execution risks should be tracked closely. 

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. 

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