IRFC, RITES, Railtel, Titagarh Systems, Other Railway Stocks Surge Up To 13 Per Cent - Know Why

Railway Stocks News: Shares of railway-sector stocks surged on May 16 with Indian Railway Finance Corporation Ltd (IRFC), RITES Ltd, Titagarh Rail Systems, Railtel Corporation Of India Ltd, Rail Vikas Nigam Ltd (RVNL), Ircon International and Jupiter Wagons Ltd trading higher by up to 13.29 per cent at the time of writing on the NSE.

The strong buying momentum seen in shares of railway-related companies comes amid the benchmark indices trading lower with the Sensex and the Nifty falling up to 0.46 per cent lower at the day's low. Titagarh Railsystems shares gained the most among the railway pack with the stock surging 14 per cent to an intraday high of Rs 924.4 apiece on the NSE.

Why Are Railway Stocks Gaining

Ajit Mishra, SVP, Research, Religare Broking Ltd told Outlook Money that the recovery in railway stocks follows a broader market rebound. He added that apart from the overall rebound, order wins and other business-related tailwinds have also contributed to the rally.

"After nearly a year in a corrective phase, we're now seeing broad‑based buying interest—including in railway stocks. Most names had fallen roughly 50–70 per cent from their record highs and are now recovering alongside the broader market rebound. Moreover, recent deal wins by select companies have added to the positive momentum," Mishra said.

RVNL share price rose surged nearly 11 per cent to an intraday high of Rs 417.5 apiece on the NSE after the company secured a Rs 115.79 crore from the Central Railway. As a part of the contract RVNL will undertake the up-gradation of a part of the Nagpur Division of Central Railway.

IRCON share price jumped over 8 per cent to Rs 192.4 after the company won an order worth Rs 51.61 crore from North Western Railway. IRFC share price rallied over 7 per cent to an intraday high of Rs 140.22 apiece on the NSE continuing its three-session gaining spree.

RITES share price climbed nearly 12 per cent to hit an intraday high of Rs 277.5 apiece after the company posted its results for the quarter and full fiscal ended March 31, 2025. The company's consolidated net profit surged to Rs 132.71 crore in Q4 FY 2024-25 compared to Rs 126.10 crore in Q4 FY 2023-24. The company's board of directors also announced a dividend of Rs 2.65 per share for the financial year 2024-25.

Other railway stocks such as IRCTC, BEML, Railtel Corp of India, Container Corporation, and Jupiter Wagons also gained amid the broad-based interest in the sector. Manasvi Garg, a Sebi-registered investment advisor, told Outlook Money that easing geopolitical tensions and a potential Indo-US trade deal have boosted market optimism.

"Easing geopolitical tensions in the region provided relief to investors contributed to the positive sentiment in the broader market. Developments regarding a potential trade deal between India and the United States also supported market optimism. And the NSE Midcap and Smallcap indices have rebounded strongly—rising over 20% since their April 7, 2025, lows—indicating renewed interest and momentum in broader market segments," Garg said.

What Should Investors Do

Amid the rally in railway sector stocks and an increased buying interest, Mishra urged investors to remain selective in the space and monitor the execution timelines of companies.

"That said, we recommend staying selective in this space and closely monitoring the company's execution timelines," Mishra said.

Garg added that despite the rally, the short-to-medium term outlook for rail-stocks is cautious as the allocation made to the sector in the budget has remained unchanged.

"Despite today's rally, the short- to medium-term outlook for railway stocks remains cautious. One of the key concerns is that the railway sector allocation remains unchanged in the FY26 Union Budget," Garg said.