Railway stocks, Budget 2026: Why IRFC, RVNL, IRCTC, Ircon, Titagarh, Jupiter Wagons are in focus today
Budget 2026: Analysts and industry players noted that Indian Railways have already utilised over 80 per cent of its Rs 2,52,200 crore capital outlay for FY26 by December 2025.
- Feb 1, 2026,
- Updated Feb 1, 2026 8:34 AM IST
Union Budget 2026 : Railway stocks such as Indian Railway Finance Corporation Ltd (IRFC), Rail Vikas Nigam Ltd (RVNL), IRCON International Ltd, Indian Railway Catering and Tourism Corporation Ltd (IRCTC), Titagarh Rail Systems Ltd and Jupiter Wagons Ltd, among others, are in focus on Sunday, February 1, as stock investors are eyeing double-digit growth in budgetary allocation for the sector after three years of relatively muted growth.
Analysts and industry players noted that Indian Railways have already utilised over 80 per cent of its Rs 2,52,200 crore capital outlay for FY26 by December 2025. Most of them see around 5-10 per cent growth in railway allocation for FY27. Any budgetary outlay in excess of this will act as a positive surprise for the sector, they said.
The focus is expected to be shifted towards capacity augmentation, rolling stock induction and safety-related work, analysts tracking the sector said.
A few marketmen see gross budgetary support for railways at around Rs 2.65 lakh crore so far, while some optimistic estimates anticipated it at Rs 2.8 lakh crore. Safety (Kavach), decongestion (track doubling and DFC), station redevelopment and NHSRCL (bullet train) are seen as key themes.
Bajaj Broking said it sees Budget 2026 focusing on safety systems like Kavach, station modernisation, and faster project execution. MOFSL expects 8-10 per cent YoY jump in railway capex. Axis Securities said railways should witness a 15 per cent growth in budgetary allocation in 2026-27.
Vivek Lohia, Managing Director at Jupiter Wagons, earlier this month said that with railway electrification nearing completion, capital deployment was likely to be redirected towards easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters.
Nuvama Institutional Equities said the broader policy objective remained lowering logistics costs and improving competitiveness. The brokerage noted that despite India’s improvement in logistics costs, they were still above the 6-7 per cent levels typical of advanced economies. Nuvama said higher allocation to railways, if materialised, would be positive for players across the value chain, ranging from consultancies and project execution companies to equipment suppliers.
The brokerage added that any increase in railway safety measures would be positive for Kavach system providers. HBL Engineering, formerly HBL Power Systems Ltd, Kernex Microsystems (India) Ltd, Siemens Ltd and CG Power and Industrial Solutions Ltd, through GG Tronics, were expected to benefit. The railways ministry was already working on an 18,000 km tender for Kavach 4.0, which would require significant investment, Emkay Global said.
“With railways electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters,” it said.
Any push towards train modernisation would be positive for coach developers such as BEML Ltd, BHEL, Siemens Ltd and Titagarh Rail Systems.
Kamal Poddar, Managing Director at Choice International, was optimistic on allocations. In a BTMarkets survey, he said allocations approaching Rs 2.8 lakh crore would act as a strong signal of infrastructure commitment.
Union Budget 2026 : Railway stocks such as Indian Railway Finance Corporation Ltd (IRFC), Rail Vikas Nigam Ltd (RVNL), IRCON International Ltd, Indian Railway Catering and Tourism Corporation Ltd (IRCTC), Titagarh Rail Systems Ltd and Jupiter Wagons Ltd, among others, are in focus on Sunday, February 1, as stock investors are eyeing double-digit growth in budgetary allocation for the sector after three years of relatively muted growth.
Analysts and industry players noted that Indian Railways have already utilised over 80 per cent of its Rs 2,52,200 crore capital outlay for FY26 by December 2025. Most of them see around 5-10 per cent growth in railway allocation for FY27. Any budgetary outlay in excess of this will act as a positive surprise for the sector, they said.
The focus is expected to be shifted towards capacity augmentation, rolling stock induction and safety-related work, analysts tracking the sector said.
A few marketmen see gross budgetary support for railways at around Rs 2.65 lakh crore so far, while some optimistic estimates anticipated it at Rs 2.8 lakh crore. Safety (Kavach), decongestion (track doubling and DFC), station redevelopment and NHSRCL (bullet train) are seen as key themes.
Bajaj Broking said it sees Budget 2026 focusing on safety systems like Kavach, station modernisation, and faster project execution. MOFSL expects 8-10 per cent YoY jump in railway capex. Axis Securities said railways should witness a 15 per cent growth in budgetary allocation in 2026-27.
Vivek Lohia, Managing Director at Jupiter Wagons, earlier this month said that with railway electrification nearing completion, capital deployment was likely to be redirected towards easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters.
Nuvama Institutional Equities said the broader policy objective remained lowering logistics costs and improving competitiveness. The brokerage noted that despite India’s improvement in logistics costs, they were still above the 6-7 per cent levels typical of advanced economies. Nuvama said higher allocation to railways, if materialised, would be positive for players across the value chain, ranging from consultancies and project execution companies to equipment suppliers.
The brokerage added that any increase in railway safety measures would be positive for Kavach system providers. HBL Engineering, formerly HBL Power Systems Ltd, Kernex Microsystems (India) Ltd, Siemens Ltd and CG Power and Industrial Solutions Ltd, through GG Tronics, were expected to benefit. The railways ministry was already working on an 18,000 km tender for Kavach 4.0, which would require significant investment, Emkay Global said.
“With railways electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters,” it said.
Any push towards train modernisation would be positive for coach developers such as BEML Ltd, BHEL, Siemens Ltd and Titagarh Rail Systems.
Kamal Poddar, Managing Director at Choice International, was optimistic on allocations. In a BTMarkets survey, he said allocations approaching Rs 2.8 lakh crore would act as a strong signal of infrastructure commitment.