Railway PSU Stocks: Railway PSU equities maintained their upward trend on Thursday, with gains of up to 7% recorded in shares of firms like RVNL, RailTel Corporation of India, and RITES. The main indices, the Sensex and Nifty 50, both increased by around 1% today, coinciding with the rally in railway equities and a larger upswing in the Indian stock market.

Stock Prices Rising:

The stock prices of RITES, RailTel, Texmaco Rail & Engineering, and Indian Railway Finance Corporation (IRFC) all increased by as high as 7.02%, 4.4%, and 3.6%, respectively. In the meantime, the stock of Indian Railway Catering and Tourism Corporation (IRCTC), Titagarh Rail Systems, and Rail Vikas Nigam Ltd (RVNL) all saw increases of more than 1%. A number of government directives and anticipations of higher capital expenditure (capex) in the railway industry have supported the sector’s ongoing buying interest and improving confidence.

Government Investments:

In March 2025, government capital expenditures reached a record high of ₹2.4 lakh crore, representing over 23% of the central government’s FY25 capital expenditures and a 68% year-over-year (YoY) increase. Furthermore, in Q4FY25, quarterly capital expenditures hit a record high of ₹3.7 lakh crore, up 33% YoY and accounting for 35% of FY25 capital expenditures. According to the trend, the worst of the monthly capex slump appears to be over. The government plans to invest ₹11.2 lakh crore in FY26, a 6.5% YoY increase.

Also Read: Top investment strategies for 2025: stocks, real estate, and more

Order Win for RailTel:
RailTel Corporation of India recently revealed that the Motor Vehicles Department in Maharashtra had sent them a Letter of Intent (LoI). For ten years, the order covers the design, installation, operation, and upkeep of an Intelligent Traffic Management System (ITMS) throughout the Vidarbha Circle’s designated blackspots. The estimated order amount, as stated in the company’s regulatory filing, is ₹274.40 crore; the final contract value will be verified when the purchase order is issued.

Outlook for Railway Stocks:
Strong government order flows and anticipation of increased public sector investment are thought to be the two main drivers of the railway stock boom, according to analysts. Technical indicators also corroborate this theory.

While its overall PAT increased at a CAGR of 15%, the railway sector’s market capitalization recovered from its lows and recorded a CAGR of 46% during the same period. Strong order book growth and a rebound in mid- and small-cap sentiments have driven the rerating trends in the railway and defense sectors, according to research by Motilal Oswal Financial Services.
Also Read: IRCTC: Railway stocks rise up to 14%, Here’s why

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