IRFC Vs RVNL Vs Concor Vs IRCTC Vs RailTel: Railway Stocks On Bull Run; 2 Mega PSUs Ex-Dividend Dates Ahead

Railway stocks are trading higher on August 20, as experts predict order book momentum to pick up in infrastructure in the second half of FY26, which is a key positive for the sector. The Indian government is highly ambitious to expand railway infrastructure and has been increasing their budget allocation for the same.

"Execution improvement is likely from 2HFY26E onwards as labor and regulatory challenges recede," Equirus Securities said in its report for the infrastructure sector. It added, "Order inflows are expected to pick up momentum, especially in roads & railways segments."

These railway stocks are also in focus after their Q1 results.

Additionally, railway PSU giants' Q1 results came as a mixed bag, with IRFC, which is the leader, recording the highest ever quarterly net income in the quarter under review, to the tune of Rs 1,746 crore, up by 11% YoY. Also, RailTel Corporation performed stable; however, Rail Vikas Nigam (RVNL) posted challenging Q1 results for FY26.

Also, railway giants like BEML, IRCTC and Titagarh Rail Systems posted subdued performance in Q1FY26.

Railway Stocks On August 20, 2025:

On stock exchanges, except for Ircon International and RITES, all other railway stocks are rallying on August 20.

On Wednesday, BEML, Container Corporation, IRCTC, IRFC, RVNL, RailTel Corp, Texmaco RAIL and Titargarh Rail are up by 0.5% to 1.5%.

IRFC is in news after it sanctioned and executed agreements for a fresh term loan facility of Rs 199.70 crore with Surat Integrated Transportation Development Corporation Limited (SITCO) to support the development of the Surat Multi-Modal Transport Hub (MMTH).

It said, established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has played a pivotal role in strengthening India's rail infrastructure by mobilising resources at competitive rates. Recently accorded 'Navratna' status, the company is expanding its role as a diversified infrastructure financier within the railway ecosystem, with a mandate covering projects that have forward and backward linkages with railways, such as power generation and transmission, mining, fuel, coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, multimodal logistics etc. IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio.

Meanwhile, RVNL and IRCTC are also trending due to their ex-dividend date on August 21 and August 22 for dividend payout o Rs 1.72 and Rs 1 per share. Sentiments will be high in these stocks in the next two days.

Are Railway Stocks a Good Investment?

According to the brokerage smallcase website, there are several benefits of investing in railway stocks. These are:

Dividends: Many railway companies pay dividends, which can provide investors with a steady income stream. This makes companies on the railway sector share list attractive for income-seeking investors.

Government Support: The government often supports companies' rail stocks, which can provide a number of benefits. For example, the government may provide subsidies for railway construction or operation. It can help reduce the cost of doing business for railway companies.

Increasing Demand: The demand for railway services is increasing due to population growth, urbanisation, and economic growth. This increasing demand is expected to lead to increased revenue, a rise in Indian railway share price today, and more opportunities for investors focusing on the Indian railway stock market.

Economic Growth: India's growing economy is expected to boost demand for rail travel, positively impacting listed railway stocks on NSE and BSE.

However, before investing in railway stocks, investors should do their own due diligence. Analysise both fundamental and technical factors of the companies.

For FY26, the Indian government has announced a budget allocation of Rs 2,65,200 crore for the railway sector. The Railway Ministry is aiming to have 7000 km of high speed rail network supporting a speed of 250 km per hour by 2047. Also, Indian Railways aims to achieve 100 per cent electrification by the end of FY 2025-26.

Moreover, the government is expecting 200 new Vande Bharat trains, 100 Amrit Bharat trains, 50 Namo Bharat rapid rail and 17,500 general non-AC coaches in the next two to three years' time.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.