What is the story about?
As FM Nirmala Sitharaman set to present her 9th Union Budget 2026 in Parliament at 11 am, investors focus is on railway stocks as the government has kept
the Railway Budget allocation unchanged since 2024 at Rs 2.65 lakh crore. The last major shift came in Union Budget 2023, when a record capital outlay of Rs 2.40 lakh crore was announced for Indian Railways -- the highest-ever allocation and nearly nine times the outlay of 2013–14. That Budget effectively gave the green signal to railway-linked companies and triggered a historic multibagger rally across the sector. This was the year when the engine truly started humming. Stocks such as RVNL, IRFC, IRCON, RailTel, BEML and IRCTC went into overdrive. An investor who had put Rs 1 lakh into railway stocks in early 2023 could have easily seen that investment double, triple or even quadruple by mid-2024. But as any regular commuter knows, even a “superfast express” has to slow down at some stations. With railway allocations plateauing after the big push, stock prices too started reflecting a phase of consolidation, correction and normalisation. The sector has now shifted from euphoric rerating to performance-based differentiation.
Union Budget 2023–24: The rocket phase
This was the golden year for railway stocks. Investors who held positions during this phase saw extraordinary wealth creation. The government announced a record Rs 2.40 lakh crore capital expenditure, and the market reaction was explosive.
Railway stocks delivered outsized returns, with several counters surging up to 300 per cent.
Union Budget 2024–25: The consolidation phase
The era of easy money was over. Valuations had turned expensive, and the market began waiting for actual earnings performance to justify elevated stock prices.
Several stocks underperformed, delivering flat to negative returns as the sector entered a phase of consolidation and profit-booking.
Union Budget 2025–26: Flat to negative phase
With the government keeping the railway sector allocation unchanged, the market response remained muted. This stability in spending translated into flat to negative stock performance across much of the sector.
The theme-driven rally gave way to a reality check, where fundamentals, execution and earnings delivery began to matter more than Budget announcements alone.
Here is how key listed railway-sector stocks have performed over successive Budget cycles:
Railway stocks performance after budget in the past horizons
BEML stock | Union Budget 2023 to Union Budget6
-Surged around 150 per cent from Rs 769.88 to Rs 1,902.40 (Jan 31, 2023 – Feb 1, 2024)-Climbed nearly 10 per cent from Rs 1,752.65 to Rs 1,922.35 (Jan 31, 2024 – Jan 31, 2025)
-Declined 6 per cent from Rs 1,922.35 to Rs 1,794.90 (Jan 31, 2025 – Jan 31, 2026)
CONCOR stock | Union Budget 2023 to Union Budget 2026
-Up 41 per cent from Rs 502.76 to Rs 710.00-Down 12 per cent from Rs 710.00 to Rs 624.08
-Down around 20 per cent from Rs 624.08 to Rs 502.25
IRCON International stock | Union Budget 2023 to Union Budget 2026
-Jumped nearly 300 per cent from Rs 60.30 to Rs 237.35
-Down around 7 per cent from Rs 237.35 to Rs 221.43
-Down 26 per cent from Rs 221.43 to Rs 164.00
IRCTC stock | Union Budget 2023 to Union Budget 2026
-Up 53 per cent from Rs 636.60 to Rs 977.20
-Down 16 per cent from Rs 977.20 to Rs 822.30
-Down 24 per cent from Rs 822.30 to Rs 623.05
IRFC stock | Union Budget 2023 to Union Budget 2026
-Surged 430 per cent from Rs 33.05 to Rs 175.15-Down 14 per cent from Rs 175.15 to Rs 150.94
-Down 20 per cent from Rs 150.94 to Rs 120.10
RVNL | Union Budget 2023 to Union Budget 2026
-Up 300 per cent from Rs 76.10 to Rs 308.25-Up 55 per cent from Rs 308.25 to Rs 476.00
-Down 30 per cent from Rs 476.30 to Rs 343.40
RailTel | Union Budget 2023 to Union Budget 2026
-Up 251 per cent from Rs 124.65 to Rs 437.45-Down 7 per cent from Rs 437.45 to Rs 406.60
-Down 13 per cent from Rs 406.60 to Rs 353.40
| Stock | Long-Term Trend | Budget Day Trend |
|---|---|---|
| RVNL | Multibagger | Mostly negative |
| IRFC | Multibagger | Mostly negative |
| IRCON | Multibagger | Mostly negative |
| RailTel | Multibagger | Mostly negative |
| BEML | Strong uptrend | Mixed |
| IRCTC | Structural compounder | Negative |
Railway stocks on Budget days
Most railway stocks have delivered long-term wealth creation, but Budget Days themselves are largely negative or muted, reflecting mature sector pricing and expectation saturation.BEML
-2023: Down nearly 10 per cent to Rs 698.03
-2024: Up 8.54 per cent to Rs 1,902.40
-2025: Down 4.58 per cent to Rs 1,834.22
Container Corporation of India (CONCOR)
-2023: Down 2.72 per cent to Rs 489.08
-2024: Up 3.79 per cent to Rs 736.96
-2025: Down 3.09 per cent to Rs 604.76
IRCON International
-2023: Down 4.31 per cent to Rs 57.70
-2024: Down 2.59 per cent to Rs 228.60
-2025: Down 9.28 per cent to Rs 200.88
IRCTC
-2023: Down 1.34 per cent to Rs 628.05
-2024: Down 1.42 per cent to Rs 963.30
-2025: Down 3.35 per cent to Rs 794.70
IRFC
-2023: Down 4.68 per cent to Rs 31.50
-2024: Down 3 per cent to Rs 169.90
-2025: Down 6.43 per cent to Rs 141.22
RVNL
-2023: Down 4.53 per cent to Rs 72.65
-2024: Down 3.47 per cent to Rs 297.55
-2025: Down 8.97 per cent to Rs 433.55
Railtel Corporation of India
-2023: Down 7.66 per cent to Rs 115.10
-2024: Down 4 per cent to Rs 419.95
-2025: Down 6.87 per cent to Rs 378.65
RITES
-2023: Down 5.70 per cent to Rs 170.07
-2024: Down 5.42 per cent to Rs 351.42
-2025: Down 2.43 per cent to Rs 254.70
Texmaco Rail
-2023: Down 9.31 per cent to Rs 51.00
-2024: Down 0.79 per cent to Rs 217.85
-2025: Down 9.45 per cent to Rs 177.00
Titagarh Rail Systems
-2023: Down 5 per cent to Rs 217.05
-2024: Down 0.46 per cent to Rs 1,087.80
-2025: Down 6.18 per cent to Rs 956.00
| Stock | 2023 Budget Day | 2024 Budget Day | 2025 Budget Day |
|---|---|---|---|
| BEML | -10% (Rs 698.03) | +8.54% (Rs 1,902.40) | -4.58% (Rs 1,834.22) |
| CONCOR | -2.72% (Rs 489.08) | +3.79% (Rs 736.96) | -3.09% (Rs 604.76) |
| IRCON | -4.31% (Rs 57.70) | -2.59% (Rs 228.60) | -9.28% (Rs 200.88) |
| IRCTC | -1.34% (Rs 628.05) | -1.42% (Rs 963.30) | -3.35% (Rs 794.70) |
| IRFC | -4.68% (Rs 31.50) | -3% (Rs 169.90) | -6.43% (Rs 141.22) |
| RVNL | -4.53% (Rs 72.65) | -3.47% (Rs 297.55) | -8.97% (Rs 433.55) |
| RailTel | -7.66% (Rs 115.10) | -4% (Rs 419.95) | -6.87% (Rs 378.65) |
| RITES | -5.70% (Rs 170.07) | -5.42% (Rs 351.42) | -2.43% (Rs 254.70) |
| Texmaco Rail | -9.31% (Rs 51.00) | -0.79% (Rs 217.85) | -9.45% (Rs 177.00) |
| Titagarh Rail | -5% (Rs 217.05) | -0.46% (Rs 1,087.80) | -6.18% (Rs 956.00) |
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
