Railway stocks are on a tear right now, and if you’ve been watching the charts this week, it’s been a sea of green. As of Saturday, December 27, 2025, the “Big Four”—RVNL, IRFC, IRCON, and IRCTC—are capping off a five-day rally that’s seen some of them jump as much as 26%.
The thing is, the “fundamentals” haven’t magically changed overnight. Or nothing. Let’s be real, this is a classic case of a sentiment shift fueled by a New Year “Santa rally” and some serious pre-Budget hype. Those too.
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The “Why” Behind the Skyrocket
There are three big things happening at once here:
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The Fare Hike Factor: Yesterday, December 26, a new passenger fare structure officially kicked in.1 It’s the second hike this fiscal year. While it’s only 1–2 paise per km, it’s expected to pull in an extra ₹600 crore by March.2 It signals to the market that the Railways is actually getting serious about its “operating ratio” (basically, how much it spends to earn a rupee).3
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Budget 2026 Whispers: We’re about a month out from the Union Budget, and the rumor mill is spinning. The word on the street is a record 10–12% hike in railway capex, potentially hitting nearly ₹3 lakh crore.4
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The “Safety” Goldmine: There’s talk of a massive ₹1.3 trillion allocation just for rail safety and the ‘Kavach’ system.5 This is a massive win for execution players like RVNL and RailTel.
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The Performance (Last 5 Sessions)
| Stock | 5-Day Jump | Current Price (Approx) |
| RVNL | +26.5% | ₹387.25 |
| IRFC | +20.0% | ₹133.60 |
| IRCON | +19.0% | ₹178.25 |
| RailTel | +15.0% | ₹357.80 |
The Reality Check
And here’s the kicker: even with this massive week, most of these stocks are still in the red for the year 2025.6 They spent most of the year being “battered” by valuation concerns and FIIs dumping PSU stocks.7
It’s an ongoing situation where analysts are warning that this is a “tactical rebound.” Basically, people are buying the rumor of a blockbuster Budget. If the Finance Minister doesn’t deliver those massive numbers on February 1, we could see these gains vanish just as fast as they appeared.
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End…
