IRFC, RVNL, other railway-linked stocks slide up to 3% after 5 sessions of gains
Railway-linked stocks including IRFC and RVNL slipped up to 3% on Monday as investors booked profits after five straight sessions of sharp gains, even as the sector remains in focus following a recent passenger fare hike and rising expectations from the Union Budget 2026–27.
Shares of railway-linked companies including Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam Ltd (RVNL), and Jupiter Wagons pulled back as muc has 3% on Monday as investors locked in profits after a blistering five-session rally, even as the sector remains in focus following a recent passenger fare hike and rising expectations from the Union Budget.
Indian Railway Finance Corporation (IRFC) shares fell as much as 3.1% to Rs 129.30 on the BSE. Rail Vikas Nigam Ltd (RVNL) declined up to 3% to Rs 376.35, while Ircon International slid as much as 2.1% to Rs 175.10. Jupiter Wagons dropped up to 2.9% to Rs 337.40, and Indian Railway Catering and Tourism Corporation (IRCTC) eased 0.5% to Rs 701.60.
Profit-taking after sharp rally
The declines came after a sharp run-up over the previous five sessions, during which railway stocks had surged as investors positioned for higher passenger fares and anticipated increased budgetary support for the sector.
In the prior five sessions, RVNL shares climbed from around Rs 306 to Rs 387.25, logging gains of more than 26.50%. IRFC rose from Rs 110.81 to Rs 133.60, delivering returns of over 20%. Ircon International advanced from about Rs 150 to Rs 178.25, a rise of roughly 19%. RailTel Corporation of India and IRCTC also saw strong buying interest during the rally.
The pullback reflects near-term profit booking rather than a shift in sentiment toward the sector.
Fare hike backdrop
Railway stocks had been buoyed after the government’s revised passenger train fares came into effect last week, marking the second fare hike in 2025. The move is aimed at balancing passenger affordability with the financial sustainability of railway operations.
The Railway Ministry said the revision affects ordinary and mail/express trains, while suburban services and season tickets remain unchanged. “Under the revised fare structure, there is no change in fares for suburban services and season tickets, including both suburban and non-suburban routes. For ordinary non-AC (non-suburban) services, fares have been rationalised in a graded manner across second class ordinary, sleeper class ordinary, and first class ordinary,” the ministry said.