Shares of railway stocks have been on fire in the past week, with names like Ircon International, RITES, Titagarh Rail, Jupiter Wagons and RVNL notching 20-30% gains in the last five sessions.
While there is no specific trigger behind the surge in buying across these counters, the improving market sentiment is likely seen as a major factor driving optimism for the sector. On top of that, the steep correction in railways segment during the market downturn post September last year may have also added to the sentiment.
Despite the strong buying action seen in these counters this past week, most of these railway stocks trade 30-50% off their record highs.
Meanwhile, select companies also rolled out updates on order wins, which also helped gain traction among investors.
Ircon International announced a bagging an order worth Rs 51.61 crore from North Western Railway, which triggered an 8% surge in its shares. Ircon said that it received a receipt of a Letter of Acceptance from North Western Railway for the provision of a Remote Diagnostic & Predictive Maintenance System.
The scope of the project covers the RE-MD section of Jaipur Division, MD-PNU section of Ajmer Division, RE-BTI section of Bikaner Division, and MTD-LUNI section of Jodhpur Division.
In the previous session, Rail Vikas Nigam announced securing a significant project from Central Railway. The company has received the Letter of Award (LoA) for overhead equipment (OHE) modification work aimed at upgrading the existing 1x25 KV electric traction system to a more robust 2x25 KV system. This upgrade will take place in the Itarsi–Amla section of the Nagpur Division and is part of efforts to support a 3,000 MT load target.
The contract is valued at Rs 116 crore, and RVNL is expected to complete the project within the next 24 months.
Adding to the list, Rahul Mithal, Chairman and Managing Director of RITES, also rolled out an optimistic outlook for the company in an interaction with CNBC-TV18. He stated that RITES stood on track to reach an order book of Rs 10,000 crore by the end of the year. Backed by strong order inflows in the March quarter, the company is also eyeing a 20% growth in revenue and a 10% increase in profits in the current financial year.
Meanwhile, Indian Railway Finance Corporation (IRFC) has set its sights on Rs 30,000 crore in disbursements for FY26. The company is also planning to diversify its loan book beyond the railways, signalling a broader strategic shift in its lending portfolio.
In today’s session, shares of Ircon International, RITES, Titagarh Rail, Jupiter Wagons and RVNL ended with 7-10% gains.
