Pacers Anureet Singh (5/52) and Hardik Rathod (3/34) shared eight wickets between them to close the first innings of visitors, who started the day at 88 for four.
Anureet added two scalps to his three yesterday for a five-wicket haul while left-arm paceman Rathod polished off the tail.
Railways though could not make the most of the situation as they were struggling at 61 for four at the end of second day's play.
Aarpit Vasavada could not add a single run to his overnight score of 44 as he was first batsman to depart in the second over of the day off medium fast bowler Krishnakant Upadhyay (2/52).
Skipper Jaydev Shah, overnight 25, and Chirag Jani helped the team cross 150-run mark by scoring 45 and 32 runs respectively.
Anureet got his team second wicket when he had Shah caught by wicket-keeper Amit Paunikar. Rathod then removed Kamlesh Makwana (9), Dharmendrasinh Jadeja (4) and Jani.
When Railways came to bat, young left-arm paceman Jaydev Unadkat, who has played six ODIs for India, gave Saurashtra a good start by removing rival skipper Shivakant Shukla (1) in his second over. Abhishek Bhat sent back Paunikar (11)
Brief Scores:
Saurashtra 1st innings: 165 all out in 75.4 overs. (Jaydev Shah 45, Aarpit Vasavada 44; Anureet Singh 5/52).
Railways 1st innings: 61 for 4 in 33 overs.(Mahesh Rawat 20 batting; Jaydev Unadkat 2/9).
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