Railway stocks pull all stops: Ircon, RailTel, RVNL, others rally up to 12% on capex push

Shares of railway companies saw a significant increase in investor interest on June 4, likely enthused by a slew of recent government orders in the sector, signalling a renewed effort to push capex-led growth in FY26.

Shares of Ircon International were the top gainer among the pack, jumping over 12 percent - the most in 20 weeks- on the back of announcing an engineering, procurement and construction (EPC) order worth Rs 1,068.3 crore from East Central Railway.

RailTel Corporation of India shares gained over 12 percent after the company recently selected Techno Electric & Engineering Company as a partner to set up a 10 MW data centre in phases on RailTel’s land in Noida, Uttar Pradesh.

Shares of Texmaco Rail & Engineering jumped over 8 percent, while Rail Vikas Nigam (RVNL) gained over 7 percent, whereas Indian Railway Finance Corp (IRFC), Titagarh Rail Systems and CONCOR shares gained around 3 percent each. Shares of BEML and Indian Railway Catering and Tourism Corporation (IRCTC) were trading with marginal gains.

The revived investor interest was also supported by stronger growth momentum in the economy, with India’s GDP touching a four-quarter high of 7.4 percent. "The Q4 growth print partly reflects the back-loaded spending effect of the government, both centre and states, led more by public capex spending. As a whole, the growth has been in-line with the government estimates, with capital formation staying broadly steady," said Madhavi Arora, chief economist, Emkay Global.Expectations of higher capex spending by the government may act as a possible boost for the shares, which have also been supported by technical factors behind the uptrend.