IRFC, RVNL to IRCTC: Why are Railway stocks rising after Economic Survey 2025? | Stock Market News
Source: Live Mint
Economic Survey 2025: Shares of Railway stocks RVNL, IRCON, IRCTC, and BEML soared on Friday, January 31, in tandem with the broader markets after the Economic Survey 2025 announced massive expansion for Indian Railways in FY25.
Rail Vikas Nigam Ltd surged 10 percent to its day’s high of ₹481.05 while IRCON also rallied 10 percent to its day’s high of ₹223. BEML jumped as much as 9.6 percent to ₹3879.90 while Indian Railway Catering and Tourism Corporation climbed almost 6 percent to ₹824.95. Indian Railway Finance Corporation (IRFC) also rose around 3 percent to its day’s high of ₹152.50
“Railway stocks have risen since the Economic Survey of 2025 revealed the Government of India’s (GoI) focus on infrastructure. The survey report says that over 2,000 km of railway network was commissioned from April to November 2024. Around one and half a dozen Vande Bharat trains were introduced between April and October 2024. This signals the rapid Capex expansion in the rail infra segment, which has triggered buying in railway stocks,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
What Economic Survey announced?
The Economic Survey 2024-25 highlighted that railway network expansion in FY25 has remained on pace with the previous year, while the addition of rolling stock has seen a notable rise. Between April and October 2024, 17 new pairs of Vande Bharat trains were introduced, with a total of 228 coaches manufactured.
According to the report, 2,031 km of railway network was commissioned between April and November 2024, compared to 2,282 km in the same period of FY24, marking a reduction of 251 km. However, the addition of rolling stock, including wagons, coaches, and locomotives, has grown significantly. Wagon production increased from 22,042 units in FY24 (April-November) to 26,146 units in FY25. Similarly, the production of locomotives rose from 968 units to 1,042 units over the same period.
The Survey also detailed key infrastructure projects under Indian Railways and Road Transport. As of October 2024, the Mumbai-Ahmedabad High-Speed Rail Project, India’s bullet train initiative, had achieved 47.17 per cent physical progress, with an expenditure of ₹67,486 crore. Initially sanctioned in December 2015, the 508-km project, backed by Japan, now carries a revised cost estimate of ₹1.08 lakh crore.
The report underscored the government’s emphasis on infrastructure development over the past five years. The Union Government’s capital expenditure on core infrastructure sectors grew at a rate of 38.8 per cent from FY20 to FY24. Following the electoral process, capital expenditure gained momentum between July and November 2024. Infrastructure development across critical sectors, including railways, roads, airports, and ports, has remained steady, with capacity expansion progressing as planned.
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