Budget 2026 gives Indian Railways biggest-ever ₹2.92 trillion capex boost; check the stocks in focusBudget 2026 gives Indian Railways biggest-ever ₹2.92 trillion capex boost; check the stocks in focus

Introduction

Union Budget 2026 allocates a record ₹2.92 trillion for railway infrastructure, increasing capital expenditure, passenger revenue, and supporting high-speed rail corridors and construction equipment development.

Budget 2026 Boosts Railways Capex

Budget 2026 gives Indian Railways a record ₹2.92 trillion capex boost, 10 per cent higher than FY26 revised estimates, signalling strong government focus on expanding rail infrastructure and modernising the network.

Capital expenditure from budgetary support will rise to ₹2.77 trillion in FY27, up 9.9 per cent over FY26. Investment from internal and extra budgetary resources is projected at ₹15,000 crore.

Railways plans gross traffic receipts of ₹3.02 trillion in FY27, an 8.4 per cent increase from FY26 revised estimates. Current year receipts are likely to fall short of this target by ₹23,000 crore.

Passenger revenue is expected to increase 9 per cent to ₹87,300 crore in FY27 from ₹80,000 crore in FY26. The operating ratio is budgeted at 98.4 per cent for FY27.

The Railways has avoided commercial borrowings for operations in recent years. As of December 2025, it spent 80.54 per cent, or around ₹2.03 trillion, of the total FY26 capex allocation.

Finance Minister Nirmala Sitharaman also announced a new scheme for construction equipment, including tunnel-boring machines, to support Metro lines and faster infrastructure development across cities.

“In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as ‘growth connectors’ — Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri,” Sitharaman said in her Budget speech.

Stocks to Watch

Railway stocks likely to benefit from the budget include:

Indian Railway Finance Corporation (IRFC)

On February 2, 2026, Indian Railway Finance Corporation Ltd opened at ₹115.35, up 1.55% from its previous close of ₹113.55. The stock reached a high of ₹115.35 and a low of ₹111.80. By 11:10 AM, it traded at ₹112.10, a 1.28% decrease, with a market cap of ₹1,46,497.95 crore.

Rail Vikas Nigam (RVNL)

On February 2, 2026, Rail Vikas Nigam Ltd opened at ₹321.65, down 1.35% from its previous close of ₹326.05. The stock reached a high of ₹324.15 and a low of ₹311.90. By 11:10 AM, it traded at ₹313.55, a 3.83% decrease, with a market cap of ₹65,375.81 crore.

Indian Railway Catering and Tourism Corporation (IRCTC)

On February 2, 2026, Indian Railway Catering and Tourism Corporation Ltd opened at ₹608.65, up 0.49% from its previous close of ₹605.95. The stock reached a high of ₹609.90 and a low of ₹597.00. By 11:10 AM, it traded at ₹597.40, a 1.41% decrease, with a market cap of ₹47,792.00 crore.

Container Corporation of India (CONCOR)

On February 2, 2026, Container Corporation of India Ltd opened at ₹505.90, unchanged from its previous close of ₹505.90. The stock reached a high of ₹513.00 and a low of ₹497.50. By 11:12 AM, it traded at ₹499.05, a 1.35% decrease, with a market cap of ₹38,008.54 crore.

Ircon International

On February 2, 2026, IRCON International Ltd opened at ₹154.35, up 0.50% from its previous close of ₹153.60. The stock reached a high of ₹156.20 and a low of ₹148.85. By 11:14 AM, it traded at ₹149.55, a 2.64% decrease, with a market cap of ₹14,065.41 crore.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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