The railway sector has been in the spotlight lately, but not for good reasons. After the Union Budget 2025, experts are worried about the future of railway stocks, especially given the recent Railway stocks crash. The government decided to keep the capital expenditure (capex) for railways at Rs. 2.55 lakh crore for FY26, the same as last year.
The unchanged capex has not only upset the stock market but also raised questions about how fast the railways can grow and modernize. Analysts believe that without more investment, projects aimed at making railways safer and more efficient might slow down. It seems the government is now focusing more on other sectors, leaving railways in the shadows while the Railway stocks crash continues to raise concerns.
Here’s a look at some major railway stocks that have crashed over 60% in the last six months due to various economic factors, including the recent Railway stocks crash, along with what experts are saying:
Railway Stocks Crashed over 60% in the last 6 months
1. Indian Railway Catering & Tourism Corporation (IRCTC)
- Market Cap: Rs. 53,684 crores
- Recent Performance: The stock fell nearly 5% to Rs. 662 on Friday. It hit a 52-week high of Rs. 1,148.3 in May 2024 but is now trading at a 42% discount.
- Returns: Down 28% in 6 months and 18% in the last month.
- Q3 FY25 Results: Revenue grew by 9.5% to Rs. 1,224.6 crores, while net profit increased by 13.7% to Rs. 341 crores.
2. Rail Vikas Nigam Limited (RVNL)
- Market Cap: Rs. 69,420.7 crores
- Recent Performance: The stock dropped 6.3% to Rs. 328.4 on Friday. It reached a 52-week high of Rs. 647 in July 2024 but is now trading at a 49% discount.
- Returns: Down 45% in 6 months and 30% in the last month.
- Q3 FY25 Results: Revenue fell by 2.6% to Rs. 4,567.4 crores, and net profit dropped by 13.2% to Rs. 311.4 crores.
- Order Book: As of January 2025, the company has orders worth Rs. 97,000 crores, with Rs. 49,000 crores from bidding works and Rs. 47,600 crores from railway projects.
3. Ircon International Limited
- Market Cap: Rs. 13,327 crores
- Recent Performance: The stock fell 6% to Rs. 140 on Friday. It hit a 52-week high of Rs. 351.65 in July 2024 but is now trading at a 60% discount.
- Returns: Down 45% in 6 months and 36% in the last month.
- Q3 FY25 Results: Revenue declined by 11% to Rs. 2,613 crores, and net profit plunged by 65% to Rs. 86 crores.
- Order Book: As of December 2024, the company has orders worth Rs. 21,939 crores. Railways contribute 78% (Rs. 17,075 crores), highways 22% (Rs. 4,775 crores), and other segments Rs. 89 crores.
Also Read: 4 Railway PSU Stocks to Watch: FII Holdings Increased in 2025
| Company | Market Cap (Rs. Crores) | Recent Performance | Returns | Q3 FY25 Results |
| IRCTC | 53,684 | Trading at a 42% discount from 52-week high of Rs. 1,148.3. | Down 28% in 6 months, 18% in last month. | Revenue grew by 9.5% to Rs. 1,224.6 crores, net profit increased by 13.7% to Rs. 341 crores. |
| Rail Vikas Nigam Limited (RVNL) | 69,420.7 | Trading at a 49% discount from 52-week high of Rs. 647. | Down 45% in 6 months, 30% in last month. | Revenue fell by 2.6% to Rs. 4,567.4 crores, net profit dropped by 13.2% to Rs. 311.4 crores. |
| Ircon International Limited | 13,327 | STrading at a 60% discount from 52-week high of Rs. 351.65. | Down 45% in 6 months, 36% in last month. | Revenue declined by 11% to Rs. 2,613 crores, net profit plunged by 65% to Rs. 86 crores. |
What’s Next for Railway Stocks?
The railway sector is at a crossroads. With no increase in capex, the growth of railway stocks seems uncertain. Investors are advised to keep a close eye on government policies and sector developments before making any decisions. While some stocks may look attractive at current prices, the lack of fresh investments could delay recovery.
Indian Railway Stocks to Watch: Upto 50% Discount from High