Share Market Update: Amidst fluctuations in the stock market, the railway sector has shown resilience. Shares of railway-related companies witnessed a strong surge after the government implemented a fare hike for passenger trains. Some stocks saw a jump of up to 13 percent in early trading, clearly reflecting investor enthusiasm.
Why the Surge in Railway Stocks?
The fare hike is expected to directly benefit the railways’ revenue. The government estimates that this decision will generate approximately ₹600 crore in additional revenue for the railways. According to market experts, the improved revenue outlook and the expectation of stable cash flow have attracted investors to railway stocks.
Strong Surge in Shares of RVNL and IRFC
Rail Vikas Nigam Limited (RVNL) shares saw the biggest jump. On the BSE, its share price rose by nearly 13 percent to ₹391.40. Indian Railway Finance Corporation (IRFC) shares also gained approximately 8 percent, reaching ₹132. Jupiter Wagons and IRCTC shares also maintained a positive trend.
Impact on IRCTC and Other Companies
Indian Railway Catering and Tourism Corporation (IRCTC) shares rose by about 3 percent to ₹701.60. Investors expect that the fare hike, along with stable passenger numbers, will have a positive impact on the company’s revenue.
New Fare Hike Structure
The Ministry of Railways has clarified that this increase applies to ordinary and Mail/Express trains. There is no change in fares for local train services and season ticket holders. No additional charges will be levied for journeys up to 215 kilometers. Beyond this distance, a limited and phased increase in fares has been implemented to avoid placing an excessive burden on passengers.
Impact on Mail and Express Trains
In Mail and Express trains, a marginal increase per kilometer has been implemented in both non-AC and AC categories. Passengers traveling 500 kilometers in non-AC coaches will have to pay approximately 10 rupees extra, which is considered quite low compared to the total fare.
Good revenue already generated
According to the Ministry of Railways, the previous fare hike implemented in July 2025 has already generated approximately 700 crore rupees in additional revenue. This is why the market is confident that the new increase will further strengthen the railway’s financial position.
Investors’ eyes are on the budget
Investors are hoping for a larger allocation of funds for the railways in the upcoming budget. If this happens, the shares of railway-related companies could see further gains.