Top Railway Stocks in India

1. BEML Ltd: BEML Ltd manufactures heavy equipment for mining, defence, and railways. The company drives growth in India’s infrastructure and manufacturing sectors through its wide product range.
2. Jupiter Wagons Ltd: Jupiter Wagons Ltd manufactures railway freight wagons and rolling stock. The company provides transportation solutions and strengthens India’s logistics and infrastructure sectors.
3. Titagarh Rail Systems Ltd: Titagarh Rail Systems Ltd manufactures railway rolling stock and coaches. The company serves domestic and international markets and improves railway infrastructure with modern transportation solutions.
4. Ramkrishna Forgings Ltd: Ramkrishna Forgings Ltd manufactures forged and machined components for the automotive, railway, and construction sectors. The company creates precision products that meet industrial and global market needs.
5. Texmaco Rail & Engineering Ltd: Texmaco Rail & Engineering Ltd manufactures railway wagons, coaches, and heavy engineering products. The company supports India’s rail infrastructure and delivers reliable engineering solutions across industries.

Here is how you can invest in the best railway stocks in India:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top railway stocks in India using the Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of railway stocks in India.
3. Place a ‘Buy’ Order on the top railway stocks in India that align with your investment thesis.

The total budget allocation for Indian Railways in FY 2025-2026 is ₹2.52 lakh cr., unchanged from the previous year’s allocation.

The key budget allocations were:

• Track Renewal: ₹17,651.98 cr. for FY 2024-2025, up from ₹16,826.36 cr. in 2022-2023.
• Gauge Conversion: ₹4,719.50 cr. for FY 2024-2025, up from ₹4,278.54 cr. last year.
• Doubling Lines: ₹29,312.19 cr. for FY 2024-2025, down from ₹35,046.03 cr. the previous year.
• New Lines: ₹34,602.75 cr. for FY 2024-2025, slightly higher than the ₹34,410 cr. spent last year.

Strong Government Orders:

• Ircon International received an EPC contract worth ₹1,068 cr from East Central Railway, as well as other orders worth over ₹900 cr.
• Texmaco Rail won a ₹122 cr order for traction transformers.
• RVNL secured a ₹159.8 cr contract to modernise overhead traction systems.
• RailTel obtained a ₹22.75 cr work order and is expanding digital infrastructure on railway land.

Boost from Government Capex:

• The Indian government increased capital expenditure for FY26 to ₹11.4 lakh cr, up 14.9% year-on-year, with a strong focus on rail and infrastructure.
• Public investment continues to drive optimism for growth across railway-related sectors.
• Favourable Market Sentiment Toward Small and Mid-Cap Stocks
• Investors are showing more interest in smaller infrastructure and technology-linked railway firms.

Strong Financial Performance by Rail PSUs:

• RailTel reported a 27.6% increase in Q4 profit and achieved a record order book of approximately ₹3,150 cr.
• RITES and other railway firms reported strong earnings and are expanding their order pipelines.

• Extensive Network: Fourth-largest railway network globally, spanning over 68,000 km.
• Passenger-Centric: Trains are the world’s largest passenger carriers, transporting millions daily, offering consistent growth potential for the Indian railway shares list.
• Freight Powerhouse: The railway sector, including railway infrastructure development stocks, offers catering, tourism, parcel services, and various train types, adding diversification to the Indian railway stocks list for beginners in NSE.
• Modernising and Expanding: The industry is investing heavily in technology and infrastructure development, benefiting those who invest in railway stocks in the NSE.

• Diversification: Investing in Indian railway stocks can help diversify an investor’s portfolio, reducing overall risk.
• Dividends: Many railway companies pay dividends, which can provide investors with a steady income stream. This makes the Indian railway stocks list attractive for income-seeking investors.
• Government Support: The government often supports companies’ rail stocks, which can provide several benefits. For example, the government may provide subsidies for railway construction or operation. It can help reduce the cost of doing business for railway companies.
• Increasing Demand: The demand for railway services is growing due to population growth, urbanisation, and economic growth. This increasing demand is expected to lead to increased revenue, a rise in the Indian railway share price today, and more opportunities for investors focusing on the Indian railway stock market.

• Economic Impact: Railway demand is tied to the economy. During downturns, reduced spending can result in a decline in passenger and freight traffic. This can hurt the revenue and profits of even the best Indian railway sector stocks in India.
• Policy Changes: Government policies have a significant influence on the railway sector. Changes in fares, subsidies, or infrastructure plans can affect railway stock performance.
• Competition: Indian Railways faces growing competition from road and air transport, which can pressure its market share and share prices.
• High Debt Levels: Some railway companies, particularly those involved in infrastructure, have high debt levels. This exposes them to interest rate risks and challenges in debt servicing.
• Cyclical Industry: The railway industry experiences cycles of growth and decline. Investors should align their decisions with industry trends and their risk tolerance.

• Government Policy: The Indian government invests heavily in railways and plans to double the rail network by 2030. This initiative boosts growth for companies involved in infrastructure and coach manufacturing.
• Economic Growth: The expanding economy increases demand for rail travel and influences the performance of railway stocks in India listed on NSE and BSE.
• Competition: Railways compete with road and air travel but remain a cost-effective and high-capacity transport option. Upcoming innovations, such as bullet trains, may make the sector more attractive.
• Financial Performance: Investors should review key metrics, including revenue, profit margins, and debt levels, to assess the company’s financial strength.