Union Budget 2026 : IRCTC, RVNL, IRCON, RailTel To Watch Amid Higher Capex Expectations

Ahead of the Union Budget, to be presented by Union Finance Minister Nirmala Sitharaman on Sunday, 1 February 2026, the investors are enthusiastic to learn about the plans for the railway sector. The government's spending decisions will play a key role in determining the investment plans in railway stocks, making the budget a crucial event for railway-related companies.

Speaking about the impact of the upcoming budget on the railway ecosystem, Pranay Aggarwal, the Director and CEO of Stoxkart, told Livemint, "In the Budget for 2026-27, a modest increase in capital expenditure for Indian Railways is expected, with allocations likely to rise to around ₹2.75 trillion from ₹2.52 trillion, implying a near-10% increase."

"The anticipated 10-12% rise in railway capex to nearly ₹2.8 trillion in FY27 could translate into healthy order inflows across EPC, safety systems, track works, electrification, station redevelopment and rolling stock. This, along with improving railway finances and strong execution, should support revenue visibility for EPC and infrastructure players, while also aiding rolling stock manufacturers," added Aggarwal.

Notably, the Central government allocated ₹2.65 trillion to the Ministry of Railways in the Union Budget 2025-26, focusing on infrastructure, modernisation, and electrification, which has led the market experts to expect a higher capital allocation for the railways in this upcoming budget.

According to a Financial Express report, the government may increase allocation towards the automatic train protection system Kavach, production of advanced coaches, and the Namo Bharat Rapid Rail service.

Amid these speculations and following the rail fare hike in December 2025, the railway-related stocks have surged up to 33 per cent in the past few trading days. Jupiter Wagons went up to 33.2 per cent, whereas Rail Vikas Nigam (RVNL) and Ircon International climbed around 20 per cent each. Meanwhile, Indian Railway Finance Corporation (IRFC), Railtel Corporation of India, Titagarh Rail Systems, Texmaco Rail & Engineering and Rites shares have moved up in the range of 10 - 16 per cent during the same period, as per ACE Equity data.

Based on market expectations and analysts' review, here are some of the railway stocks worth tracking -

Indian Railway Catering & Tourism Corporation (IRCTC)

With the current market price of Rs 613.90, the IRCTC continues to be a strong contender among railway stocks. As digital ticketing and non-convenience fee income have improved over the past years, IRCTC now plans to roll out a unified travel portal and establish the payment aggregation business.
Rail Vikas Nigam Ltd (RVNL)
The construction arm of the Indian Railways has bagged several contracts to modernise the sector. It has a current market price of Rs 321.
IRCON International Ltd (IRCON)
The enterprise has strong government backing and a diverse order book. The stock has seen bullish activity in the past few weeks. Its current market price is Rs 156.20.
RailTel Corporation of India Ltd (RAILTEL)
Incorporated in 2000, the company is one of the largest neutral telecom infrastructure providers in the country. With the current market price of Rs 331.50, the experts recommend this stock for long-term gains.

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