Railway Stocks Soar Up to 12% on Fresh Capex Boost

Shares of railway companies saw a strong rally on June 4, driven by renewed investor interest following major government orders and a focus on capex-led growth in FY26. Leading the surge was Ircon International, whose stock jumped over 12% to ₹218, marking its highest gain in 20 weeks. This spike followed the announcement of a ₹1,068.3 crore EPC contract from East Central Railway.

RailTel Corporation of India also gained over 12% after selecting Techno Electric & Engineering Company as a partner to establish a 10 MW data centre on RailTel's land in Noida, Uttar Pradesh.

Texmaco Rail & Engineering rose over 8%, while Rail Vikas Nigam Ltd (RVNL) climbed 7%. Other railway-related stocks like IRFC, Titagarh Rail Systems, and CONCOR saw gains of around 3% each. BEML and IRCTC traded with marginal upticks.

The surge in railway stocks was further supported by broader economic optimism, with India’s GDP growing at a four-quarter high of 7.4% in Q4. Madhavi Arora, Chief Economist at Emkay Global, noted that the growth was largely driven by public capex spending, particularly in the latter part of the fiscal year.