New Delhi: Despite a declining domestic stock market, railway-related shares witnessed a sharp surge today following a fare hike in passenger trains, expected to generate ₹600 crore in additional revenue for Indian Railways.
Market Reaction
In early trading, railway-linked stocks jumped as much as 13%. Rail Vikas Nigam Limited (RVNL) led the rally, with its stock climbing to ₹391.40, marking a 13% gain on the BSE. Other notable performers included:
- Indian Railway Finance Corporation (IRFC): up 8% to ₹132
- Jupiter Wagons: up 4% to ₹358.15
- Indian Railway Catering and Tourism Corporation (IRCTC): up 3% to ₹701.60
Investors had been anticipating this fare increase, coupled with expectations of higher budgetary allocations for the railway sector.
Details of the Fare Hike
The Ministry of Railways clarified that the increase applies to ordinary and mail/express trains, while local trains and season tickets remain unaffected. Key highlights:
- Ordinary travel up to 215 km: No increase
- 216–750 km: ₹5 hike
- 751–1,250 km: ₹10 hike
- 1,251–1,750 km: ₹15 hike
- 1,751–2,250 km: ₹20 hike
For sleeper and first-class ordinary coaches, the fare increases by 1 paisa per km, and for AC and non-AC mail/express coaches, by 2 paisa per km. For example, a 500 km journey in a non-AC mail/express coach will cost only about ₹10 extra.
The ministry also reported that the previous fare hike in July 2025 has already generated approximately ₹700 crore in additional revenue for the railways.
Conclusion
With consistent fare adjustments and strong investor interest, railway stocks have emerged as a resilient segment, offering both growth and stability in a fluctuating market environment.
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