Budget 2026: Top 5 Railway Stocks to Watch for Strong Gains

• Indian Railways increased fares on December 26, 2025, aiming to improve internal cash flow and reduce budgetary pressure.
• Budget 2026 has high expectations for safety upgrades, modernization, and capacity expansion, including Kavach and Vande Bharat sleeper trains.
• IRFC, RVNL, IRCTC, RITES, and Texmaco Rail & Engineering are key railway stocks in focus due to their roles in financing, infrastructure, services, consultancy, and manufacturing.
• IRFC and RVNL have delivered multibagger returns over 5 years, while IRCTC, RITES, and Texmaco Rail have also shown significant long-term growth despite recent dips.
• Experts advise a bottom-up approach for railway investments, focusing on companies with strong track records and reasonable valuations, as sector-wide bets can be risky.

Why It Matters: Investors should selectively eye railway stocks before Budget 2026, focusing on strong fundamentals for potential gains.