Mumbai, 29 December. Shares related to Indian Railways have shown a strong rally after a long period. Over the last five trading sessions, railway sector stocks have witnessed significant gains.
This surge has increased the market capitalization of railway-related companies by nearly ₹66,500 crore. Investors are returning to the sector ahead of the upcoming Union Budget, encouraged by positive earnings signals from these companies.
Railway shares faced pressure for much of 2025. After reaching a peak in July 2024, the sector saw a decline due to high prices and reduced expectations of government support, causing many stocks to fall.
The recent rally indicates a gradual return of investor confidence. Factors boosting this confidence include fare hikes, budget expectations, and positive developments related to some companies.
Jupiter Wagons led the gains, with its shares rising approximately 37 percent in just five days. Rail Vikas Nigam Limited (RVNL) shares increased by around 27 percent, while Indian Railway Finance Corporation (IRFC) shares grew by more than 20 percent.
Other companies like Ircon International, Titagarh Rail Systems, RailTel Corporation, Texmaco Rail and Engineering, Rights, and BEML also recorded notable share price increases.
Despite the recent upswing, most railway stocks remain below their previous highs.
A key reason for this rise is the Indian Railways’ decision to increase passenger fares from 26 December. This is the second fare hike in the financial year 2026. For long-distance travel, fares for ordinary, mail, and express trains have been raised by 1 to 2 paise per kilometre. However, fares for local and suburban trains remain unchanged.
The fare hike is expected to generate an additional revenue of around ₹600 crore for Railways in the current financial year.
Currently, passenger train services operate at a loss, as fares are about 45 percent lower than costs. This deficit is offset by earnings from freight transport.
The increase in fares will help boost income, reduce losses, and improve the financial health of Indian Railways.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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