4 Railway Stocks with Strong Order Books

#2 Texmaco Rail & Engineering

Next on our list is the stock of Texmaco Rail & Engineering.

The company is a multi-discipline, multi-unit engineering and Infrastructure company, with 5 manufacturing units.

The company was formed after demerger into it of the heavy engineering and steel foundry divisions of the parent company Texmaco Ltd.

Texmaco Rail & Engineering manufactures rolling stock like freight wagons, coaches, EMUs, and loco shells, while also producing steel castings, hydro-mechanical equipment, bridges, and executing rail EPC projects including track work, electrification, and signalling.

Good Order Book, Strong Export Demand

In a presentation in early February 2026, the company said that it had an order book size of Rs 56.61 bn. Texmaco Rail and Engineering sees the exports of components and railway castings growing at 3-5 times over the next 2-3 years.

On the financial front, the company has seen a drop in revenues and net profits for Q3 FY26. The consolidated sales dropped to Rs 10,416 m in Q3 FY26 from Rs 13,261 m in Q3 FY25. Similarly net profits fell to Rs 347 m from Rs 699 m YoY.

Texmaco Rail & Engineering has reported compounded sales growth of 46.6% over the last three years. The company's net profit growth over the same period is placed at a solid 164.3%.

On the diversification front, Texmaco Rail & Engineering is expanding its capabilities in infra projects and green hydrogen solutions.

In terms of expansion, the company is planning to create new growth engines beyond rail cyclicality. It also looking at expanding into the GCC region as also diversification into the iron pellet business.

Texmaco Rail and Engineering is focused on executing its growth strategy through an integrated operational base, expanding partnerships, and a very clear road map. It's increasing its market presence, both in India and international markets while driving long-term growth through strategic partnerships, innovation, improved efficiency.

In the past five trading sessions, Texmaco Rail and Engineering shares have gained from Rs 98.07 to Rs 106.04.

The stock touched its 52-week high of Rs 189 on 26 June 2025 and a 52-week low of Rs 78.15 on 30 March 2026. The stock currently trades at Rs 106.04 on the BSE.

To know more check the Texmaco Rail fact sheet and latest quarterly results.

#3 Rail Vikas Nigam

Next on our list is the stock of Rail Vikas Nigam.

The company undertakes railway projects including new lines, gauge conversion, electrification, metro systems, bridges, workshops, and port connectivity.

It also handles station modernisation, viaducts, level crossing eliminations, and turnkey projects such as training institutes and green buildings. Rail Vikas Nigam serves Indian Railways, government ministries, and public sector entities.

Strong Railway Order Book, Increasing Attention on Bidding

Rail Vikas Nigam has a Rs 870 bn order book, which includes railway nomination works of Rs 400 bn. The company has also secured Rs 470 bn of work on bidding.

More recently, the company has secured works of Rs 15.28 bn of new works and has emerged as the lowest bidder for a project value of Rs 36.67 bn.

On the financial front, the company reported revenues of Rs 46,845 m vs Rs 45,674 m YoY. The net profits of Rail Vikas Nigam were Rs 2,677 m vs Rs 2,547 m YoY.

Rail Vikas Nigam has a 3-year compounded sales growth of 0.9% and compounded profit growth of 4.9%.

Moving ahead, the company has signed an MOU with Visakha Port Authorities for development of various infrastructure projects in that port. It is also in discussion with various states and public sector bodies to explore the business opportunities in that area.

The management in a recent earnings conference call highlighted several key projects that are under way at the company.

One of them is the Vande Bharat project, where 120 train sets are being manufactured along with its Russian counterpart. The first prototype is expected to be ready by June or July of this year.

Another significant project for the company is the BharatNet project. The company is hopeful to generate good income through the project.

Rail Vikas Nigan is also making rapid progress on its Rishikesh-Karnaprayag, where work is on full swing. The company has set a target in which to complete the project as December 2028.

The company has good prospects driven by India's massive railway modernization push, including new tracks, electrification, station redevelopment, metro projects, and freight corridors. Its strong order book, government backing, and experience will support growth.

Diversification into roads, ports, and overseas opportunities adds potential. However, margins can remain challenging due to EPC competition, and performance depends on timely project execution, budget allocations, and policy continuity.

In the past five trading sessions, Rail Vikas Nigam shares rallied from Rs 280 to Rs 303.

The stock touched its 52-week high of Rs 448 on 20 May 2025 and a 52-week low of Rs 248.25 on 30 March 2026. The stock currently trades at Rs 303.1 on the BSE.

To know more check the Rail Vikas Nigam fact sheet and latest quarterly results.

#4 IRCON International

Ircon International is a Navratna, Public Sector Enterprise and a leading turnkey construction company.

The core competence of IRCON is in railways and highways. The company has executed projects operated in the areas of railway construction including ballast less track, electrification, tunnelling, signal & telecommunication as well as leasing of locos, construction of roads, highways, commercial, industrial & residential buildings and complexes, airport runway and hangars, metro and mass rapid transit system, etc.

The company has completed more than 130 projects in 25 countries across the globe and 405 projects in various states in India.

Order Book

The total order book as on 31 December 2025 stands at Rs 238.01 bn. The break-up of which is as follows:

• Railways - Rs 177.81 bn
• Highways - Rs 42.97 bn
• Others - Rs 17.23 bn

This gives multi-year revenue visibility, with about 75% linked to railways.

On the financial front, revenue from operations during Q3 FY26 stood at Rs 21.19 bn against Rs 26.13 bn in Q3FY25. The EBITDA was Rs 2.69 bn, compared to Rs 2.18 bn in Q3FY25. The EBITDA margin stood at 12.2%.

The net profits of IRCON International were Rs 999 m in Q3 FY26 against Rs 861 m in Q3 FY25.

In March 2026, there were multiple reports that said the Ministry of Railways was considering merging IRCON and RVNL to create a larger rail infra PSU with better scale and less overlap.

However, IRCON International said it was not engaged in merger discussions, and RVNL said it had received no communication from the Ministry or any authority.

IRCON International's future prospects appear positive, driven by India's continued push on railway, metro, highway and infrastructure capex. The company remains a key PSU EPC player with strong credentials in rail projects and overseas execution history.

In Budget 2026, Government of India has proposed seven high speed rail corridors and a dedicated freight corridor. This robust government backing creates a fertile ground for IRCON International, and the company is strategically positioned to leverage these opportunities.

However, execution delays, margin pressure from aggressive bidding, working-capital stress, and dependence on government spending cycles will remain key challenges for the company.

In the past five trading sessions, Ircon International shares have rallied from Rs 134 to Rs 154.

The stock touched its 52-week high of Rs 225.7 on 5 June 2025 and a 52-week low of Rs 114.5 on 23 March 2026. The stock currently trades at Rs 154.75 on the BSE.

To know more check the IRCON International fact sheet and latest quarterly results.

Should You Invest in Railway Stocks with Strong Order Books?

Investing in railway stocks with strong order books can be attractive, but investors should look beyond the headline numbers.

A large order book usually indicates healthy demand and gives revenue visibility for the next few years, especially in India where railway modernization, freight corridors, station redevelopment, signalling upgrades, and rolling stock expansion continue to receive government support.

However, orders only create value when they are executed efficiently and profitably. Delays, cost inflation, payment issues, and weak margins can reduce the benefit of even a strong pipeline.

Investors should study execution history, operating margins, debt levels, cash flows, fresh order inflows, and valuation before investing.

Stocks with strong order books can still underperform if already overpriced or if project execution slows. Overall, railway stocks with robust order books may suit long-term investors when backed by solid fundamentals, disciplined management, and reasonable valuations.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...