IRCON, RVNL, RITES, JWL rally upto 9%; what's driving railway stocks today?

The implementation of Government's plans to radically improve the railway infrastructure is expected to keep the demand for railway products strong in future

Railway stocks rising today

 

Shares of railway-related companies -- IRCON International, Rail Vikas Nigam Limited (RVNL), RITES, Jupiter Wagons (JWL), Titagarh Rail Systems, Indian Railway Finance Corporation (IRFC), and RailTel Corporation of India -- rallied up to 9 per cent on the BSE in Monday's intraday trade amid heavy volumes. In comparison, the BSE Sensex was trading 0.01 per cent lower at 81,899 at 09:32 AM.

 

Among individual stocks, RailTel Corporation of India surged 9 per cent to ₹407.75 on the back of over three-fold jump in average trading volumes. Nearly 8 million equity shares, cumulatively, changed hands in the first 15 minutes of trade on the NSE and BSE.

 

Those of IRCON International, meanwhile, soared 8 per cent to ₹185.90, while RITES shares rallied 5 per cent to ₹280.60, and Texmaco Rail & Engineering (TREL) 3 per cent to ₹151.80 in the intraday trade.

 

What's driving railway stocks today?

 

RailTel Corporation of India, announced on September 13, 2025, that the company has received a Letter of Acceptance (LOA) worth approx. ₹210 crore from State Project Director (Spd), Bihar Education Project Council (Bepc).

 

Earlier, on September 8, the company had announced that it has received a LoA amounting ₹262 crore from Spd Bihar Education Project Council (Bepc).

 

It had previously disclosed that as of July 29, 2025, RailTel's order book position stood at ₹7,197 crore, out of which close to ₹500 crore were related to Kavach projects.

 

Meanwhile, Jupiter Wagons, on September 11, announced that its material unlisted subsidiary, Jupiter Tatravagonka Railwheel Factory Private Limited (JTRFPL), has received a LoA from the Ministry of Railways, Railway Board for the supply of 9,000 LHB Axles for FIAT-IR Bogies, valued at approximately ₹113 crore.

 

As a part of its long-term capacity-building strategy, Jupiter Wagons is setting up a world-class forged axle and wheel manufacturing facility in Odisha with the investment of ₹2,500 crore to produce 100,000 forged wheelsets annually by 2027 for both domestic use and international markets, including the European Union.

 

RVNL announced that the company has emerged as the Lowest Bidder (L1) from West Central Railway for design/modification, supply, erection, testing, and commissioning of 220/132kV/2X25 kV Scott connected Traction SubStation and switching posts with AT including SCADA work between BINA to RTA section of Bhopal Division of WC Railway to meet 3000MT loading target. The size of the contract is ₹169 crore and to be executed within 540 days, the company said.

 

Indian Railways sector outlook

 

India's freight rail network continued strong growth, backed by steady investments, and ongoing modernisation. Electrification, safety upgrades, and dedicated freight corridors are improving speed, capacity, and reliability. The focus on infrastructure and efficiency is strengthening overall freight movement.

 

"This growth is driving long-term demand for wagons and rolling stock," Titagarh Rail Systems said in its FY25 annual report released on September 4, 2025.

 

Analysts at Systematix Institutional Equities upgraded Titagarh Rail Systems to 'Buy' from 'Add' with a share price target of ₹946 following the company's June 2025 quarter results.

 

"Titagarh Rail Systems' Q1FY26 performance remain subdued as weak wagon production (impacted by wheelset issues) and margin compression outweighed gains from stronger PRS output and improved margins. The company, however, has guided to recover the lost Q1 FRS volumes in 9MFY26 (flattish FY26E vs FY25), as wheelset supply resumed from end of July, 2025," the brokerage said.

 

It added: Recent land acquisition adjacent to the existing facility shall prove to be a silver lining with a unique ~1.6 km test track. For FY26, we expect a marginal improvement driven by gains in the PRS division and a

stable FRS segment, with robust segmental growth anticipated from FY27 onwards.

 

The implementation of the Government's plans to radically improve the railway infrastructure as part of its 'AtmaNirbhar Bharat' and 'Make in India' initiatives towards its commitment to 'Viksit Bharat' is expected to keep the demand for railway products strong in future.

 

"India's railway sector is charting an extraordinary expansion over the next five years - creating both opportunity and momentum for enterprises like ours. The Union Budget for FY 2025–26 allocated a commanding ₹2.52 trillion to Indian Railways, spearheading rolling stock additions and infrastructure growth. Plans include the manufacture of 200 Vande Bharat and 100 Amrit Bharat trains, alongside 17,500 general coaches," Concord Control Systems said in its FY25 annual report.