Railway stocks witnessed a sharp uptick in investor interest on June 4, today, buoyed by a series of fresh government orders that hint at an acceleration in capital expenditure for FY26. Heavy buying activity was seen across several railway stocks on the National Stock Exchange, with Ircon International, Rail Vikas Nigam Ltd (RVNL), RailTel, and Rites leading the charge. Ircon surged as much as over 15% to Rs 223.75, supported by robust volumes—over 10.15 crore shares changed hands, translating to a turnover of Rs 2,188.89 crore.
RVNL gained 7% to Rs 434.80, with a trading volume of 4.11 crore shares worth Rs 1,750.21 crore. RailTel rose up to 13% to Rs 449.80, with total traded value recorded at Rs 1,418 crore involving a volume of 3.26 crore shares.
The uptrend followed a series of key order announcements, implying a strong order pipeline. Ircon International recently bagged a Rs-1,068.3 crore EPC contract from East Central Railway to construct a new broad-gauge bridge over the Ganga.
Additionally, Ircon bagged several contracts in May, including—a Rs 187 crore assignment from Kerala State IT Infrastructure for developing a rural industrial park, a Rs 458.14-crore civil works deal from North Eastern Electric Power Corporation, and a Rs 253.6-crore project from South Western Railway.
RVNL also added to the order momentum by securing a Rs 159.79-crore contract from Central Railway to upgrade the overhead traction system. This would expand RVNL’s business beyond pure-play project execution. “While RVNL’s short-term rally is backed by momentum and news flow, long-term investors should consider valuation and execution risks,” Value Research said in its report. “The stock is still below its 52-week high and may have room to recover if future earnings support the optimism.”
Other railway-linked stocks also rode on the rally, with Rites shares rising over 8%, Texmaco Rail & Engineering advancing up to 9%. Both Titagarh Rail Systems and HBL Engineering gained over 4% each.
