Ircon International, RailTel, RVNL, IRFC, Texmaco Rail: Why railway stocks rose up to 15% today

Railway stocks rally: Shares of railway companies such as Ircon International, RailTel Corporation, Texmaco Rail, RVNL, IRFC, Titagarh among others rose up to 15% on Wednesday amid a rally in Sensex and Nifty. According to reports, sentiment was positive in the sector on the back of a slew of recent government orders, indicating a renewed effort to push capex-led growth in FY26.

Ircon International shares were the top gainers, rising 15 percent - the most in 20 weeks- as the firm recently received an engineering, procurement and construction (EPC) order worth Rs 1,068.3 crore from East Central Railway. Market cap of Ircon International rose to Rs 20,719 crore in the afternoon session today. 

Shares of RailTel Corporation gained 13 percent to Rs 449.20 against the previous close of Rs 398.65 on BSE. Market cap of the firm rose to Rs 14,195 crore. The company was recently selected by Techno Electric & Engineering Company as a partner to set up a 10 MW data centre in phases on RailTel’s land in Noida, Uttar Pradesh.

Shares of Texmaco Rail & Engineering jumped over 9 percent to Rs 175.40. martket cap of the firm rose to Rs 6890.91 crore. 

Rail Vikas Nigam (RVNL) stock gained nearly 8 percent to Rs 434.70 with the firm's  market cap rising to Rs 89,635 crore. 

Apart from expectations of higher capex spending by the government, analysts attributed the rally to technicals, which indicate that a majority of these stocks have broken out after long phases of consolidation. 

Shares of other railway related firms such as Indian Railway Finance Corp (IRFC), Titagarh Rail Systems and CONCOR shares gained around 3 percent each. Shares of BEML and Indian Railway Catering and Tourism Corporation (IRCTC) clocked marginal gains.

Investor interest was also strong as data indicate India’s GDP growth touched a four-quarter high of 7.4 percent. "The Q4 growth print partly reflects the back-loaded spending effect of the government, both centre and states, led more by public capex spending. As a whole, the growth has been in-line with the government estimates, with capital formation staying broadly steady," said Madhavi Arora, chief economist, Emkay Global.