Here's how railway companies performed in Q4FY25, what lies ahead

In FY25, the railway sector experienced varied developments, shaped by key government initiatives and ongoing infrastructure enhancements. Key government initiatives, such as the development of 103 Amrit Stations and increased freight capacity through record wagon production, continue to shape the sector's outlook. Investors should focus on individual company performances while also considering the broader sectoral developments that are expected to drive long-term growth. The railway sector in India has been bolstered by significant government-driven infrastructure initiatives in FY25. The ongoing redevelopment of over 1,300 stations under the Amrit Bharat Station Scheme (ABSS) and the introduction of 200 new Vande Bharat trains will continue to improve the passenger experience and expand the railway network. Additionally, the record production of 41,929 wagons this fiscal year has substantially boosted the country’s freight capacity, supporting India’s broader economic growth. These developments have had a direct impact on the financial performance of the railway companies, with some posting steady growth while others have faced operational challenges. | Metric | I R F C | Texmaco Rail | Jupiter Wagons | I R C T C | Rail Vikas | Titagarh Rail | |-------------------------|---------|--------------|----------------|-----------|------------|---------------| | CMP Rs. | 138 | 168 | 391 | 770 | 408 | 903 | | YTD Return | -3.39% | -10.49% | -19.53% | -0.03% | -0.49% | -15.03% | | Market Cap(₹ Cr.) | 180411 | 6711 | 16621 | 61660 | 85068 | 1213 | | P/E | 29.2 | 28.4 | 46.6 | 49.3 | 69.4 | 46.2 | | FY25 Sales (₹ Cr.) | 27153 | 5107 | 3871 | 4675 | 19923 | 3868 | | FY25 PAT(₹ Cr.) | 6502 | 249 | 373 | 1281 | 1281 | 275 | | Q4FY25 Sales(₹ Cr.) | 6723 | 1346 | 1002 | 1269 | 6427 | 1006 | | Q4FY25 Sales YoY % | 3.8 | 17.6 | -10.0 | 9.9 | -4.3 | -4.5 | | Q4FY25 Profit YoY % | -2.1 | -13.5 | -6.6 | 17.7 | -4.0 | -20.2 | | Q4FY25 PAT(₹ Cr.) | 1682 | 39 | 97 | 328 | 459 | 65 | Indian Railway Finance Corporation (IRFC) IRFC posted solid results for FY25, benefiting from its pivotal role in financing railway infrastructure projects. In the first four months of CY25, IRFC mopped up business worth ₹14,000 crore, reflecting robust demand for rail infrastructure financing. With a diversified lending portfolio and steady government investments in rail modernisation, IRFC’s growth trajectory looks strong. The sustained focus on modernising the network and enhancing freight capacity positions IRFC well for long-term success. Titagarh Rail Systems Titagarh Rail Systems showed strong growth in freight rail production, despite challenges like supply chain disruptions. As of 31st March 2025, Titagarh’s order book stood at ₹24,526 crores, including the share from the joint venture (JV). The company continues to expand its market presence, especially in metro rail systems, positioning itself for future growth as the demand for both freight and passenger rail systems increases. The government’s continued investment in metro projects is likely to benefit Titagarh in the upcoming years. Rail Vikas Nigam Limited (RVNL) RVNL’s steady performance is driven by its involvement in railway electrification, metro rail systems, and other key infrastructure projects. The company’s order book stands at approximately ₹97,000 crore - ₹49,000 crore from bidding works and around ₹47,000 crore from railway works. With a recent ₹554 crore contract from NHAI under its belt, RVNL continues to bag significant orders back-to-back, reinforcing its role in railway electrification, metro rail systems, and other key infrastructure projects. RVNL remains a significant player in the modernisation of India’s rail network. IRCTC In FY25, the company demonstrated strong financial performance, with notable growth in Internet Ticketing, Rail Neer, and Tourism segments. The Company has applied for payment aggregator license with RBI. Interestingly, non-railway tourism, particularly air packages, is seeing robust growth. Jupiter Wagons Jupiter Wagons Ltd. reported solid growth in FY25, achieving an increase in total income and PAT, supported by strong performance in its Railway sector, including a significant order from Ambuja Cement and ACC. Additionally, the company made key investments in its electric mobility and manufacturing capabilities, including the inauguration of a new advanced manufacturing facility and securing major orders for its wheelset production. Texmaco Rail & Engineering Texmaco Rail & Engineering reported strong financial performance with a significant increase in revenue and profitability for FY2025, reflecting robust operational growth. The Company has strengthened its market position in FY2025, delivering over 10,000 Freight Cars and forming key global partnerships with Nevomo and Trinity Rail. The company is also setting up a Global Capability Center in Faridabad to expand its international footprint and enhance its rail infrastructure business, aiming for long-term value growth. The Company has recently secured ₹140.55 crore order from the ministry of railways for multi-purpose wagons, taking its total order book value to ₹7,115 crore. Conclusion The Indian railway sector’s growth is closely tied to government initiatives aimed at modernizing the rail network and boosting freight capacity. Key initiatives such as the redevelopment of Amrit Stations, record wagon production, and the ongoing expansion of metro rail systems are expected to drive further growth in the sector. For investors, understanding both the financial performance and the broader developments within the railway sector will be essential for identifying the best opportunities moving forward.