4 Railway Stocks with Solid Growth Plans

#2 Titagarh Rail Systems Limited

The next railway stock with solid growth potential is Titagarh Rail Systems Ltd.

With the current manufacturing capacity of 12,000 wagons annually, Titagarh Rail holds 25% share in the wagon manufacturing market in the country. The company also manufactures around 300 coaches annually.

During FY26, the company commenced production of the car body for the Ahmedabad metro, and the delivery of the same happened during Q3 FY26.

Another major ongoing project for the company is manufacturing the car bodies for Vande Bharat Sleeper trains. The company has set up a complete car body production line in Uttarpara, West Bengal.

Production started in Q1 FY26, and by Q2 FY26, the company is expecting to complete production of prototypes of 16 car bodies.

Titagarh Rail also completed the setup for stainless-steel metro coach lines and is now building the setup for aluminium metro coaches. This project is expected to be completed in this quarter, Q1 FY27.

Upon completion of the setup for aluminium metro coaches, Titagarh will be the only company in India to have full manufacturing capabilities for both stainless-steel and aluminium metro coaches.

As India is determined to make Indian Railways go waitlist-free by the next four to five years, Titagarh joins the mission with a planned capex of Rs 10 bn for developing the passenger rail systems segment.

Coming to the order book position, Titagarh Rail has an order book of Rs 145 bn as of 31 December 2025, and another Rs 133 bn of order share in the Joint venture companies.

On the financial front, the company generated revenue worth Rs 22,850 m during 9M FY26, while the revenue for the corresponding period during FY25 stood at Rs 27,489.

PAT also declined from Rs 2,249 m to Rs 1,458 m during the period.

Having said that, the revenue and profit from the passenger rail segment have grown through the fiscal year. Revenue from this segment grew from 5.7% during Q3 FY25 to 20.2% in Q3 FY26.

And earnings before interest and tax (EBIT) grew from Rs 47 m to Rs 216 m during the period, logging a massive 364% YoY growth.

Coming to the long-term performance, the company offered a 3-year compound sales growth of 38% and a compound profit growth of 52.3%.

Average ROE and ROCE of the past three years stood at 12.7% and 21.8%, respectively.

Note: Q4FY26 and FY26 results are not announced yet.

For more details, see the TITAGARH RAILSYSTEMS company fact sheet and quarterly results.

#3 RailTel Corporation of India

The next railway infrastructure stock with strong expansion plans is RailTel Corporation of India (RailTel).

RailTel offers telecom infrastructure services to the Indian Railways with over 7,000 stations within its optical fibre cable network. This covers over 67,956 km of track across the country.

Apart from railways, the company works with other government and private sector giants such as SAIL, ONGC, Google, SBI, and others.

The company has been expanding its data centre business with a target of establishing around 102 edge data centres across the country.

RailTel is scaling up its railway safety and signalling portfolio with a major focus on KAVACH and other AI-enabled applications.

At the end of FY26, RailTel had orders worth Rs 25 bn from Indian Railways out of its total order book of Rs 102 bn. Out of Rs 25 bn of orders from Indian Railways, orders for the KAVACH project were worth around Rs 10 bn.

Under this KAVACH project, RailTel is developing a safety and signalling network for 502 kms of Eastern Central Railways and another 607 km as well. For the Western Central Railway, it's developing the KAVACH system for around 1,067 km.

Apart from these, the company is building a tunnel communication system for over 152 tunnels across the country.

On the railway signalling front, RailTel is developing Automatic Signalling and ground infrastructure works, and other similar systems.

On the financial front, total income for FY26 stood at Rs 43,276 m, up from Rs 35,510 m of FY25. PAT for FY26 stood at Rs 3,463 m, up from Rs 2,998 m earned during FY25.

Coming to the long-term performance of the company, 3-year compound sales growth has been 31%, and compound profit growth has been 12.8%.

The average ROE and ROCE of the past three years are 13.3% and 18.5%, respectively.

For more details, see the RAILTEL CORP OF INDIA company fact sheet and quarterly results.

#4 Jupiter Wagons

The final railway stock with strong growth plans is Jupiter Wagons Ltd.

This company is engaged in the manufacturing of different types of wagons, ranging from open wagons to covered, flat wagons, container carrier wagons, and lot more.

Jupiter Wagons is one of the largest manufacturers of 25-tonne wagons in India.

Apart from wagons, the company manufactures wheelsets, passenger coach accessories, and other track solutions for the Indian Railways.

Talking about wheelsets for Indian railways, Jupiter Wagons has been setting up India's first private sector rail wheel and axle forging plant. The total capex planner for this is around Rs 25 bn which would be deployed in phases.

As per the management, this expansion would help the company boost its domestic manufacturing capacities and also increase exports.

The company has been maintaining a healthy order book of Rs 50.4 bn as on 31 December 2025, despite near-term challenges such as supply chain constraints.

The order book growth has been driven by wheelsets and axle supply orders for different purposes, such as freight wagons, metro applications, Vande Bharat Trains, and others.

Coming to the financials, total income for 9MFY26 declined to Rs 21,719 m from Rs 29,511 m in the corresponding period last fiscal.

During the same period, PAT declined 50% YoY from Rs 2,777 m to Rs 1,388 m.

The company's financial performance during FY26 might have slumped, but its long-term performance is still strong.

The 3-year compound sales growth stood at 49.8%, and compound profit growth for the period stood at a whopping 97.1%.

Average ROE of 16.5% and average ROCE of 26% for the past three years also depict strong fundamentals.

Note: Q4FY26 and FY26 results are not announced yet.

For more details, see the JUPITER WAGONS company fact sheet and quarterly results.

Conclusion

India's massive capex push for expanding its railways has been fuelling railway stocks with solid growth plans.

Having said that, the recent financials for most of these companies have been disappointing due to near-term challenges.

Moreover, major capex planning has also been taking a toll on these companies' financials.

So, for anyone interested in any of these stocks must go through the financials in detail, compare both recent and historical performance to understand the company better, and perform due diligence before considering any investment.

Happy investing.

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