India’s railway stocks staged a sharp recovery this week, adding significant market value after months of sustained weakness.
Mumbai
India’s railway-linked stocks are showing renewed strength after a prolonged period of underperformance, with the sector witnessing a sharp rally over the past five trading sessions. The rebound has added more than ₹66,500 crore to the combined market capitalisation of railway-related companies, signalling a cautious return of investor confidence ahead of the Union Budget and amid improving revenue visibility.
Railway stocks had remained under pressure for most of 2025 after the sector peaked in July 2024. Elevated valuations, coupled with moderation in policy expectations, triggered sharp corrections across counters. However, the latest upswing suggests that investors are gradually repositioning, driven by a combination of fare revisions, budget-related optimism and company-specific triggers.
The rally has been led by Jupiter Wagons, whose shares surged nearly 37 per cent in just five sessions, making it the top performer in the current recovery phase. Rail Vikas Nigam Limited gained around 27 per cent, while Indian Railway Finance Corporation advanced more than 20 per cent over the same period.
Other railway-related stocks also posted strong double-digit gains. These include Ircon International, Titagarh Rail Systems, RailTel Corporation of India, Texmaco Rail & Engineering, RITES and BEML. The broad-based nature of the rally indicates sector-wide buying interest rather than isolated stock-specific moves.
Despite the sharp rebound, analysts note that most railway stocks continue to trade well below their previous highs, suggesting room for further recovery if earnings momentum and policy support remain favourable. Valuations, which had cooled significantly during the correction phase, are now seen as relatively more attractive by market participants.
One of the key triggers behind the rally has been Indian Railways’ decision to revise passenger fares from December 26. This marked the second fare hike in FY26, with long-distance travel fares raised by 1 to 2 paise per kilometre across ordinary, Mail and Express trains. Suburban services, however, were excluded from the revision.
