RVNL, RailTel, IRCTC, Titagarh Rail, IRFC, Ircon: Railway stocks are down up to 21% since last Budget; here's what to expect today 

Union Budget 2026: Shares of railway firms such as RailTel, IRCTC, Titagarh Rail, Ircon International, RVNL, Texmaco Rail and IRFC have slipped up to 21% in a year ahead of Union Budget 2026 set to be announced today. Texmaco Rail shares are down 21%, RVNL (15.51%), RailTel (1.24%), IRCTC (19.36%), Titagarh Rail Systems (9.39%), Ircon International (16%) and IRFC (12.20%) since Finance Minister Nirmala Sitharaman presented her 8th Union Budget on February 1 last year.  

Analysts attribute weakness in the railway stocks to high valuations and subdued quarterly earnings of rail sector firms. 

In the last Budget, allocation to the railway sector was kept unchanged at Rs 2.55 lakh crore contrary to the expectations of a significant boost. This also kept a cap on short-term sentiments in the railway stocks. 

FULL COVERAGE:  Union Budget 2026

Railway stocks have also taken a hit due to global economic instability, including proposed US tariffs, uncertain US interest rates and rising crude oil prices which have negatively impacted Indian equities in the last one year.

In Union Budget 2026, the railways are expected to experience consistent and measured growth, with industry projections indicating an approximate 5% rise in capital expenditure, bringing allocations closer to Rs 2.65 lakh crore.

Additional funding is likely towards enhancing signalling systems and upgrading tracks, which will facilitate the development of semi-high-speed rail corridors and improve network safety.

The momentum of execution within the sector remains robust. By December of FY26, Indian Railways has already utilised more than 80% of its Rs 2.52 lakh crore capital outlay, demonstrating ongoing advancements in rolling stock, station redevelopment, and safety infrastructure initiatives.