Railway stocks are back in focus as the countdown for the Union Budget 2026 picks up pace. Attention is centred on continuity in capital spending, pace of execution and quarterly performance across key public sector companies. All eyes are on whether the Budget can trigger an uptick in the railway stocks.
After a strong rally in earlier years, most stocks in the segment have corrected over the past 12 months.
5 key railway stocks in focus
A quick look at some of the key railway stocks in focus.
RITES
Rites has a market capitalisation of Rs 10,474.28 crore. Over the past 52 weeks, the stock has recorded a high of Rs 316.00 and a low of Rs 192.40.
It trades at a price-to-earnings ratio of 27.22 and a price-to-book ratio of 3.81. Its dividend yield stands at 3.46%, while return on equity is 14.07%.
The stock has declined 14.40% over one year, while three-year and five-year returns stand at 29.80% and 71.67%.
In Q2 FY26, RITES reported consolidated operating revenue of Rs 549 crore, compared with Rs 541 crore in Q2 FY25. Profit after tax rose to Rs 109 crore from Rs 82 crore a year earlier. EBITDA stood at Rs 134 crore, with margins improving to 24.4%.
For H1 FY26, consolidated revenue was Rs 1,038.5 crore and PAT was Rs 200 crore, supported by higher contribution from consultancy and export assignments.
RailTel Corporation of India
RailTel Corporation of India has a market capitalisation of Rs 10,616.64 crore. The stock’s 52-week high is Rs 478.95 and the 52-week low is Rs 265.50. It trades at a P/E ratio of 35.41 and a P/B ratio of 5.31.
The dividend yield stands at 0.86%, while return on equity is 15.67%. The stock has fallen 9.12% over one year, though three-year and five-year returns remain strong at 174.98% and 172.60%.
In Q2 FY26, RailTel reported revenue of Rs 951 crore, up 12.8% from Rs 843 crore in Q2 FY25. Net profit rose 4.7% year on year to Rs 76.07 crore, compared with Rs 72.64 crore.
EBITDA increased 19.4% to Rs 154 crore from Rs 129 crore, while EBITDA margin expanded by 91 basis points to 16.24% from 15.33%.
During the quarter, the company declared an interim dividend of Rs 1 per share.
Ircon International
Ircon International has a market capitalisation of Rs 14,569.53 crore. Over the last year, the stock has touched a 52-week high of Rs 229.50 and a low of Rs 134.24.
It trades at a P/E ratio of 20.03 and a P/B ratio of 2.29. The dividend yield stands at 1.71%, while return on equity is 11.86%. The stock has declined 20.99% over one year, while three-year and five-year returns stand at 173.93% and 266.65%.
Ircon International reported a mixed performance in Q2 FY26, with revenue holding up but profitability coming under pressure. The company posted total revenue of Rs 2,112 crore for the quarter, supported by execution across railway construction, electrification and other infrastructure segments.
Profit after tax stood at Rs 137 crore, reflecting margin compression during the period.
The management attributed the pressure on earnings to intense competitive pricing in certain projects and losses in a few specific contracts.
Despite this, Ircon ended the quarter with a strong order book of Rs 23,865 crore as of 30 September 2025, providing long-term revenue visibility.
During H1 FY26, the company secured new orders worth more than Rs 4,000 crore, indicating steady project inflows.
Container Corporation of India
Container Corporation of India has a market capitalisation of Rs 36,965.13 crore. The stock’s 52-week high stands at Rs 652.04, while the 52-week low is Rs 472.75.
It trades at a P/E ratio of 28.68 and a P/B ratio of 2.95. The dividend yield stands at 1.90%, with return on equity at 10.54%.
The stock has declined 17.68% over one year, delivered minus 5.22% over three years, and gained 40.13% over five years.
Operationally, Concor reported strong volume growth in Q3 FY26. Total throughput rose 10.78% year on year to 14,23,266 TEUs, compared with 12,84,779 TEUs in Q3 FY25. Export-import throughput increased 9.94% to 10,72,145 TEUs from 9,75,243 TEUs, while domestic throughput jumped 13.43% to 3,51,121 TEUs from 3,09,551 TEUs.
On the financial front, in Q2 FY26, the company reported a 3.6% year-on-year rise in consolidated net profit to Rs 378.70 crore. Net sales for the quarter increased 2.9% to Rs 2,354.53 crore, reflecting steady revenue growth amid cost pressures.
Indian Railway Catering and Tourism Corporation
Indian Railway Catering & Tourism Corporation has a market capitalisation of Rs 48,600 crore.
Over the past year, the stock has recorded a 52-week high of Rs 831.75 and a low of Rs 601.30.
It trades at a P/E ratio of 36.96 and a P/B ratio of 13.27. Dividend yield stands at 1.32%, while return on equity is 38.15%.
The stock has declined 18.75% over one year, is marginally lower over three years, and has gained 111.19% over five years.
In Q2 FY26, IRCTC reported revenue from operations of Rs 1,446 crore, compared with Rs 1,064 crore in Q2 FY25. Its Q2 net profit rose to Rs 345 crore from Rs 305 crore.
EBITDA margins remained above 35%, supported by strong performance in internet ticketing and catering, while tourism services also improved during the quarter.
Indian Railway Finance Corporation
Indian Railway Finance Corporation serves as the dedicated financing arm of Indian Railways, funding rolling stock and infrastructure assets through long-term lease arrangements.
In Q3 FY26, IRFC reported a profit after tax of Rs 1,802 crore, up 11% year on year and the highest quarterly profit in its history.
The total income for the quarter stood at Rs 6,719 crore, while Q3 revenue was Rs 6,661 crore, marginally lower due to a temporary moratorium on a project lease agreement. Net interest margins improved by over 8% year on year, supported by disciplined liability management.
For the nine months ended December 2025, IRFC reported PAT of Rs 5,325 crore, compared with Rs 4,820 crore in the corresponding period last year. Assets under management rose to Rs 4.75 lakh crore, marking a record level.
Budget 2025 announcements and the railway sector
A look now at what last year’s Budget provided for the railway sector.
The Union Budget 2025 maintained a strong emphasis on Indian Railways, with a total capital expenditure allocation of Rs 2,65,200 crore for FY26.
Of this, Rs 2,52,200 crore was provided as gross budgetary support from the central government, accounting for nearly 95% of the overall outlay, while the remainder was to be met through internal resources and extra-budgetary funding.
The capital allocation was directed towards safety works, capacity expansion and network modernisation rather than headline additions.
Railways’ internal revenue for FY26 was estimated at Rs 3,02,100 crore, reflecting an increase of about 8.3% over the previous year’s revised estimates.
Traffic revenue was projected at Rs 3,01,400 crore, with freight contributing roughly Rs 1,88,000 crore, or around 62%, and passenger services accounting for about Rs 92,800 crore, or nearly 31%.
On the expenditure side, total revenue spending was estimated at Rs 2,99,059 crore.
Safety-related investments formed a significant component of the budget, with consolidated provisions of around Rs 1,16,514 crore covering track renewals, signalling, workshops and elimination of level crossings.
Key infrastructure heads included Rs 32,235.24 crore for new line construction, Rs 32,000 crore for track doubling and Rs 4,550 crore for gauge conversion.
Conclusion
As the Union Budget 2026 approaches, railway stocks continue to trade below their 52-week highs, reflecting cautious expectations despite stable quarterly performance.
Results from Q2 FY26 and Q3 FY26 show steady revenues, selective profit growth and improving operational efficiency across parts of the sector.
The trajectory from here will depend on execution discipline, cost control and the pace at which budgeted spending translates into earnings.