Railway Stocks Rebound in December: Why RVNL, IRFC and Jupiter Wagons Jumped Over 12%?

After nearly 17 months of weak performance, railway stocks have made a strong comeback in December. Shares of RVNL, IRFC, RailTel, IRCON and Jupiter Wagons rose up to 12% in a month, supported by renewed investor interest and sector-specific triggers.

The rally comes ahead of the Union Budget 2026, with markets factoring in continued government support for the railways.

Key Reasons Behind the Railway Stocks Rally

Pre-Budget Optimism

Investors are betting on higher government spending on railways. The market is pricing in a possible 10% rise in railway capital expenditure, especially for infrastructure, rolling stock and safety systems.

Passenger Fare Hike

The recent increase in passenger fares has improved revenue visibility for railway-linked companies, especially IRCTC, boosting sentiment across the sector.

Focus on Modernisation and Safety

Spending on Vande Bharat trains, the Kavach safety system, and station redevelopment has raised confidence in long-term growth prospects. Electrification has also reached nearly 99% of the broad-gauge network.

Stock-Wise Performance in December

RVNL

RVNL gained around 8% in the last five trading sessions and surged over 13% on December 26. The stock also benefited from fresh order wins, including a ₹165 crore project from North Eastern Railway.

Jupiter Wagons

Jupiter Wagons rallied sharply, delivering about 37% returns between December 18 and December 26. The stock saw strong buying interest amid expectations of higher wagon demand.

IRCTC

IRCTC jumped 5% intraday after the fare hike came into effect. However, the stock is still down over 11% in the past year, indicating room for recovery.

Titagarh Rail Systems

Titagarh shares gained over 10% in the last five sessions and rose more than 20% in December, driven by optimism around rolling stock demand.

IRCON International

IRCON rose nearly 7% in the past five sessions, though it remains under pressure on a longer-term basis, with declines over the last six to twelve months.

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Conclusion

Railway stocks have staged a solid rebound in December, driven by pre-Budget expectations, fare hikes and renewed focus on infrastructure and safety. While near-term gains may moderate, the sector’s long-term growth story remains intact, supported by government-led investments and rising demand.

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