Railway Stocks Rise Following Approval of Multitracking Projects

Shares of several railway companies surged by up to 4% on Thursday following the Cabinet Committee on Economic Affairs' (CCEA) approval of five multitracking projects estimated to cost ₹10,021 crore. These projects span across 17 districts in Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana.

The proposed multitracking projects will extend 540 kilometres to the current Indian Railways network and are expected to be completed by 2029-2030. In today's trading session, Titagarh Railway Systems saw an increase of 2% to ₹894 per share, while IRCON International experienced a rise of 3.6%, trading at ₹119. The Indian Railway Catering and Tourism Corporation (IRCTC) saw an increase of over 1%, and Rail Vikas Nigam Limited (RVNL) rose by 2%, trading at ₹211. Furthermore, Indian Railways Financial Corporation (IRFC) recorded a 1% increase.

As reported by Trade Brains, firms such as IRCON International, Titagarh Railway Systems, and RVNL are anticipated to benefit from the government's focus on railway infrastructure expansion and associated multitracking initiatives.

IRCON International had an order book valued at ₹23,366 crore as of June 30, 2026, with roughly 77% of its projects linked to railway activities, making it a direct beneficiary of the new multitracking plans. Similarly, Titagarh Railway Systems held an order book of ₹26,635 crore, which includes its stakes in joint ventures. The company is expected to gain from the anticipated rise in freight movement and demand for railway wagons due to these projects.

RVNL, recognised as a Navratna company, boasts an order book of ₹93,492 crore. More than ₹58,000 crore of this sum is linked to railway projects, in addition to over ₹12,000 crore from signalling and telecom projects. The increase in train services and passenger numbers from these upgrades could boost demand for RVNL's ticketing, catering, and tourism services.

In a related development, the CCEA also sanctioned three railway multitracking projects worth ₹10,783 crore, covering 14 districts in West Bengal, Jharkhand, Odisha, Madhya Pradesh, and Chhattisgarh. Scheduled for completion by 2029-2030, these projects will add nearly 656 kilometres to the Indian Railways network and are projected to enhance freight traffic by an additional 27 million tonnes per annum (MTPA).