Railway Stocks IRFC, RVNL jump upto 10%: Reasons Behind Rally

Why are Railway Stocks going up?

During the trading session on 16 May 2025, railway stocks increased sharply, particularly the shares of IRFC, RVNL, IRCON International, and Titagarh Rail Systems. With government support, full order books, and fresh project purchases, the railway industry appears to be attracting more investors.

Let's explore the reasons behind the rally in IRFC, RVNL, and Titagarh stocks since last week, with their share prices.

 

1. IRFC

Indian Railway Finance Corporation (IRFC) shares skyrocketed by more than 6% to Rs.138.45 on the BSE mid-morning. This came after the government gave the green light to the company’s plan to raise IRFC’s long-term capital base with Deep-Discount Bonds issued at a face value of Rs. 10,000 crore, hence greatly increasing its capacity to finance projects.

Reason behind this Surge: Government nod for Rs. 10,000 deep-discount bond issue 

IRFC Share Price is Rs. 139 (+6.41%) as of 16 May 2025.

 

 

2. RVNL

RVNL gained sharply by 10%, marking a high of Rs.387.50. This came after the Central Railway contracted the company for overhead electrification work under a new contract valued at Rs.160 crore.

Reason behind this jump: Win-Back Central Railway Contract worth Rs. 160 crore

RVNL Share Price is Rs. 410  (+8.97%) as of 16 May 2025.

 

3. IRCON International

IRCON International shares rose sharply by nearly 5%, reaching Rs. 280.65 (at the time of writing this information) after winning a new contract worth Rs. 51.61 crore from North Western Railway for Remote Diagnostic and Predictive Maintenance System, which aligns with the modernisation of the railway system.

Reason behind rally: Contract of Rs. 51.61 Cr related to smart rail technology 

IRCON International Share Price is Rs. 189 (+6.34%) as of 16 May 2025.

 

4. Titagarh Rail 

Titagarh Rail has seen more than 34% growth in its stock over the last 5 days, driven by robust order intake from the metro and high-speed train segments.

Reason behind this rally: Robust pipeline of orders, metro coach projects

Titagarh Rail Share Price is Rs. 913 (+12.82%) as of 16 May 2025.

 

Key Factors For the Rally in Railway Stocks

1. Government Funding: Renewed focus on infrastructure development and modernisation of Indian Railways has brought in some long-term investors.

2. New Contract Acquisitions: The recent contract achievements of RVNL and IRCON indicate strong future project implementation and monitoring capabilities.

3. Finance: The approval of IRFC's bond issuance improves its capacity to fund growth initiatives in railways for the future.

4. Positive Mood: Indian market sentiments tend to shift towards Public Sector Units and infrastructure-related shares.

 

Conclusion

The recent jump in railway PSU stocks, including IRFC and RVNL, IRCON, and Titagarh Rail, is a reflection of increasing investor confidence in the railway transformation story in India. Given new orders, financial health, and policy support, these stocks will continue to attract attention for some time.

 

Disclaimer: No buy or sell recommendation is given. No investment or trading advice is given. Always discuss with an eligible financial advisor before investing.