Railway stocks kept climbing on Friday, marking a fifth straight day of gains.
Why the stocks are up
Investors are feeling hopeful ahead of the Union Budget 2026 and are expecting more money for railway projects. A recent rise in passenger‑train fares also helped, giving the railways better revenue outlook.
Big movers
- RVNL jumped about 12.3% to ₹388.20.
- RailTel and IRFC each rose around 9%.
- IRCTC gained nearly 5% to ₹704.
What analysts say
Prashanth Tapse, senior research analyst, notes that higher budget allocations and faster project execution—such as station upgrades, electrification, Vande Bharat trains and freight corridors—are boosting earnings expectations for railway companies.
He points to stronger order inflows, better revenue visibility and solid balance sheets as reasons for potential earnings upgrades and a possible long‑term re‑rating of the sector.
Stocks to watch
IRFC – Tapse recommends buying IRFC, targeting ₹145‑₹158. As the financing arm of Indian Railways, IRFC benefits from government spending on rolling stock, electrification and freight corridors. Its AAA rating and low credit risk make it a stable, low‑risk way to tap the railway growth story.
RailTel Corp – Technical analyst Drumil Vithlani sees a short‑term bullish pattern on the daily chart, suggesting the stock could keep rising if the weekly breakout holds.
Bottom line
Railway stocks are gaining momentum as the market anticipates more government spending and improved fare structures. Investors looking for relatively safe exposure may consider IRFC for its stable cash flow, while RailTel could offer short‑term upside.
Disclaimer
This information is for educational purposes only. Please do your own research or consult a financial advisor before making any investment decisions.