The spotlight is on the railway ahead of the Union Budget of 2025-26. Stocks like IRFC, RVNL, IRCTC, RailTel, Titagarh, and many others closed the counters on a higher note on January 31. However, most of them have given negative returns from the Union Budget 2024-25 to January 31, 2025.

On Friday, the stock of Rail Vikas Nigam rose 10% to a high of Rs 481.50, intra-day. Similarly, the share price of BEML surged 9.6% higher, intra-day, to Rs 3,882. The share price of Titagarh Rail Systems rose 8% to an intra-day high of Rs 1,036.95. IRCTC’s share price rallied as much as 6.4% during the trade to Rs 828.80 on January 31. Many other railway stocks followed the same path a day before the Union Budget 2025-26. 

The expectations are that the budget for Indian railways may rise close to Rs 3 lakh crore this year, compared to Rs 2.65 lakh crore in the last budget. This may have a positive effect on stocks like Titagarh Rail Systems, Container Corporation (ConCor), RITES, and many others due to the expected increased budget allocation towards safety enhancement. 

RailTel: The company helps in implementing the Kavach system. The stock has risen 9% in the past five trading sessions. However, the stock has fallen 3.5% from February 01, 2024, to January 31, 2025. 

Titagarh Rail Systems: The stock has given a 10% return in the past five trading days. From the budget 2024-25 to January 31, 2025, Titagarh’s share price has fallen 5.6%. The company is engaged in the business of manufacturing wagons and coaches. 

ConCor: The share price of Container Corporation of India has risen 4.5% in the past five days. The stock of ConCor has fallen 15.5% from the last budget. The company is engaged in the business of transportation and handling of containers. 

BEML: One of the primary manufacturers of Vande Bharat will surely remain in focus on February 01, 2025. The share price of BEML has risen over 10% in the past five trading sessions. The stock has given a return of 1.6% from the last budget to January 31, 2025. 

RVNL: The share price of RVNL was up all high on January 31. Axis Securities in a research report noted that the government’s higher capex outlay in the Union Budget 2024-25 for Railways has created significant growth opportunities for the company across its business verticals. “We expect the upcoming budget to provide more allocation to Railways that will boost its future growth prospect.”

All in all, the railway stocks are likely to see heightened volatility as Union Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on February 01. “We think a record increase in capital spending for the railways, with increment reaching 15–20%, and is about Rs 3 lakh crore. Priorities may include the rollout of the Vande Bharat train service to deliver long-desirable enhancements in the freight sector, juxtaposing contributory multi-modal cargo terminals, while incorporating advanced technologies such as AI into operations,” said Puneet Singhania, Director at Master Trust Group.