Today, Indian Finance Minister Nirmala Sitharaman presented the union Budget for Financial year 2025-26 in the parliament and after the presentation Indian railways stocks closed at day lows because market was expecting that government will announce any special announcement for railways sector but in the speech of Finance Minister there was no special announcements for this sector. Government is focusing to boost consumption so the income tax reduced for the middle class and there is no income tax of earnings up to 12 lakh annually.
IRFC limited, Ircon International limited, RVNL, RailTel Limited, IRCTC and Texmaco rail almost all the railways stocks fell by more than 6 percent in a day of trading.
Budget allocation for Railways
Budget allocation for the railway sector has remained unchanged for the financial year 2026. Budgetary documents shows that government allocates 2.5 Lakh crore for the railway sector this year same as last financial year 2025.
Allocation for rolling stock for railways stands at 45530 crore. Allocation for signalling and telecom stood at 6800 crore while for the electrification projects stood at 6150 crore.
Budget impact on top 6 Railways stocks
1. IRFC
Stock of Indian Railways Finance Corporation (IRFC) is the market borrowing arm of Indian Railways, finance rolling stock and infrastructure assets, as well as lending to entities under Ministry of Railways, opened today slightly in green at 151.9 and made a high of 155.52 and after budget announcement company’s share fell sharply from day’s high and closed with loss of more than 6 percent and approximately 9 percent below the day’s high at 141.22.
2. IRCTC
Stock of Indian Railways Catering and Tourism Corporation limited is the authorized entity in India for Catering, online ticketing and hospitality services with a focus on modernization, hospitality management and tourism promotion, also declined by more than 3 percent in a day and closed at 794.70 on NSE. Stock of IRCTC declined almost 5 percent from day’s high of 831.75.
3. RVNL
Rail Vikas Nigam Limited operates as an extension of the Ministry of Railways,
engaging in a wide range of railway projects from new lines to bridges, workshops and metro project on turnkey basis.
Shares of RVNL declined by more than 9 percent and closed at 433.45 on BSE. In early trades shared of RVNL with a gain of more than 5 percent and made a high of above 500 but after the budget announcement, fell by almost 14 percent from day’s high.
4. Ircon International Limited
A small cap public sector construction company Ircon International limited is based in India and specialized in railways project on turnkey basis.
Shares of Ircon International also declined due to no special announcement from FM for railways sector by more than 9 percent in a day and most among top railways companies. Company’s shares closed at 200.88 on NSE today after making a high of 229.5.
5. RailTel Limited
RailTel Limited is a prominent provider of telecom infrastructure in India, specialized in high capacity DWDM technology and MPLS network to cater to Indian Railways.
Shares of RailTel Limited declined by more than 6 percent today because of budget announcement and closed at 378.65 on NSE.
Today, after making of highs at 426.40 stock fell by more than 11 percent from day’s high.
6. Titagarh Rail
Titagarh Rail is also an Indian public limited small cap company, specializes in manufacturing and selling various transportation and heavy equipment for domestic and export markets. Shares of Titagarh Rail also declined today by more 6 percent and closed below 1000 at 956 on NSE.
Disclaimer Here we are giving the information only about the company’s performance. You should take advice from your financial adviser before investing.