Mon Dec 29 04:00:00 UTC 2025: ## Railway Stocks Surge Amid Pre-Budget Optimism and Fare Hike

Mumbai, India – Shares of railway companies, including Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corporation (IRFC), and IRCON International, have experienced a remarkable surge in the past five trading sessions, driven by positive market sentiment surrounding potential budgetary support and a recent passenger fare hike.

RVNL shares have jumped over 26.5%, while IRFC and IRCON have seen gains of over 20% and 19%, respectively. RailTel and IRCTC have also witnessed significant buying activity.

Analysts attribute the rally to a shift in market sentiment rather than any fundamental change in the companies’ performance. Ravi Singh, Chief Research Officer at Master Capital Services, believes the sector is experiencing a “tactical rebound” fuelled by pre-Budget expectations, potential capital expenditure support, and anticipated order acceleration.

A modest passenger fare hike, effective December 2025, has also boosted investor confidence. Seema Srivastava, Senior Equity Analyst at SMC Global Securities, estimates the hike will generate approximately ₹600 crore of incremental revenue, improving revenue visibility for Indian Railways. She added that market participants are anticipating continued emphasis on railway infrastructure spending in the upcoming budget.

However, Srivastava cautioned investors, noting that the rally appears primarily driven by sentiment and expectation rather than a sharp improvement in near-term earnings. She advises focusing on business-specific fundamentals, project execution, and sustained progress on fare rationalization for long-term investment decisions. Investors should be wary of extrapolating short-term momentum and prioritize a thorough evaluation of each company’s individual performance.

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