Railway related shares surge up to 13%; what's driving the rally today?

IRCON International, Texmaco Rail & Engineering and RailTel Corporation of India rallied between 9 per cent and 13 per cent on the BSE in Wednesday's intra-day trade amid heavy volume.

Share price of railway related companies today

 

Railway related shares were in focus on Wednesday, with IRCON International, Texmaco Rail & Engineering and RailTel Corporation of India rallying between 9 per cent and 13 per cent on the BSE in intra-day trade backed by heavy volume. 

 

RITES, Rail Vikas Nigam (RVNL), Jupiter Wagons and Transrail Lighting were up in the range of 3 per cent to 8 per cent. In comparison, the BSE Sensex was up 0.21 per cent at 80,905 at 11:53 AM.  READ STOCK MARKET UPDATES TODAY LIVE

 

What’s fuelling the rally in railway related stocks?

 

In the past couple of days, railway related companies have started receiving orders from the government.

 

Texmaco Rail on Tuesday, June 3, 2025, Mumbai Railway Vikas Corporation Limited vide its letter dated 2 June, 2025 awarded an order of ₹122.31 crore to the company for design, supply, construction, installation, testing and commissioning of traction transformers & associated work for Western Railway to be executed within 30 months.

 

On May 29, the company secured ₹140.55 crore order from the Ministry of Railways (Railway Board) for the supply of Flat Multi-Purpose (FMP) wagons. This milestone aligns with the Government of India’s ongoing efforts to modernize and enhance railway freight operations, reinforcing Texmaco’s role in shaping India’s logistics future.

 

Texmaco’s cumulative order book stands at ₹7,115 crore, reflecting its steady growth and continued trust from key stakeholders in the industry, the company said.

 

Meanwhile, RITES on June 3, informed the stock exchanges that the company emerged as the lowest bidder in the financial bid for a major infrastructure project floated by the Gujarat Urban Development Company (GUDC). This project is part of the ongoing development under the AMRUT 2.0 and SJMMSVY schemes for Urban Local Bodies (ULBs) in Gujarat.

 

The estimated value of the contract is ₹28.50 crore, excluding Goods and Services Tax (GST). The project will run for 60 months from the date of issuance of the Letter of Acceptance (LOA) or Notice to Proceed (NTP), the company said.

 

With an all-time high order book of ₹8,877 crore and maintaining the trend of ‘one order a day’, the management said the company has built a strong platform for the year ahead, aiming for appreciable growth in its revenue.

 

On June 2, Transrail Lighting, a prominent EPC player in the Transmission & Distribution (T&D) segment, with presence in Civil, Railways, and Poles & Lighting, won fresh orders worth ₹534 crore across domestic and international geographies.

 

These new orders also include the company’s biggest substation job which the company is going to execute in Africa. With FY26 order intake already crossing ₹1,600 crore, the management said the company remains focused on efficient execution and timely delivery.

 

On June 1, RailTel informed the stock exchanges that the company selected Techno Electric & Engineering Co as Managed Service Data Centre Partner through open tender process on revenue sharing basis to setup 10MW Data Centre in phases on RailTel’s land in Noida. LOI has been issued in this regard, the company said.

 

Meanwhile, on May 31, IRCON International said the company secured a contract from Easter Central Railway, Indian Railway, amounting to ₹1,068 crore. The contract is for engineering, procurement and construction (EPC) for construction of New BG Rail Bridge with sub-structure of double line track and superstructure of single line track across river Ganga between Bikramshila and Katareah stations on new railway line project invited by East Central Railway. The project is to be executed in 1,460 days.

 

As on May 22, IRCON order book stood around ₹20,500 crore. The company said it has entered into new verticals like Kavach, the train protection warning system, the iconic technology of the country.

 

Railway Sector

 

The railway sector has experienced significant growth over the past few years, driven by increased investments and financial backing from the government. The National Rail Plan 2030 offers numerous opportunities across various railway domains.

 

The Union Budget for FY 2025-26 included a record-breaking capital allocation of ₹2.65 trillion crore for the railways. The key areas targeted for investment are rolling stock, multitracking works, electrification, passenger amenities, high-speed rail and DFCs. The government is also exploring private investments into rolling stock manufacturing and operation and maintenance services.

 

The government’s emphasis on modernising and expanding railway infrastructure is evident through several key initiatives. These include the introduction of High-Speed Rail (HSR) and semi-HSR corridors, RRTS, suburban rail systems, first and last-mile connectivity projects, station modernisation, enhanced implementation of the Automatic Train Protection System ‘KAVACH,’ and the deployment of LTE-R (Long Term Evolution for Railways), the engineering giant Larsen & Toubro (L&T) said in its financial year 2024-25 (FY25) annual report.

 

Following directives from the Railway Board, zonal railways have gradually adopted the EPC delivery model. Building on the successful commissioning of the Dedicated Freight Corridor (DFC), some railway zones are in the process of transitioning to large-scale Engineering, Procurement, and Construction (EPC) packages instead of smaller contracts. 

The acceptance of advanced transport systems, such as Regional Rapid Transit System (RRTS) and HSR, continues to grow, as demonstrated by the recent commissioning of the Delhi-Meerut RRTS corridor. Furthermore, there is a significant pipeline of projects across both the mainline and metro segments that are expected to be bid out in the near term, L&T said.