IRFC, RVNL, RITES, railway stocks fall after Budget 2026 announcements

Indian Railway stocks, IRFC, RITES, RVNL and Titagarh Rail Ltd., along with others, are trading with losses of up to 5% on Sunday, February 1, after the announcements made in the Union Budget 2026.

The Ministry of Railways has been allocated ₹2.93 lakh crore from financial year 2027, a 10% growth from the ₹2.65 lakh crore that was allocated in the ongoing financial year in the previous budget.

Drilling it down to specifics, the allocation for new lines has been increased to ₹36,722 crore from ₹30,632 crore. Allocation for gauge conversion has seen a marginal increase to ₹4,600 crore from ₹4,284 crore.

Allocation for Rolling Stock stood at ₹52,109 crore, from ₹50,008 crore last year. For signaling and Telecom, as well as Electrification Projects, the capex has been increased by ₹500 crore to ₹1,000 crore for financial year 2027.

The 10% increase in allocation is in-line with what brokerages such as Nirmal Bang were anticipating from the Budget.

No specific announcements have been made with regards to new trains or Vande Bharat trains, apart from the high-speed corridor that was announced by Finance Minister Nirmala Sitharaman in the Lok Sabha.

Shares of IRFC are trading with losses of 4.5%, while those of RITES and RVNL are trading between 4.5% to 5.5% lower.