Railway Stocks Rally After Fare Hike Announcement
Jupiter Wagons hits upper circuit; investors cheer Railways’ revised fare structure from December 26
- Railway stocks rise 2%–20% intraday; Jupiter Wagons jumps 20%
- Rally follows Indian Railways’ revised fare structure effective December 26
- Fare hike expected to add ₹600 crore to Railways’ annual earnings
- Despite surge, most stocks remain weak on YTD and 52-week basis
GG News Bureau
New Delhi, 23rd Dec: Railway and railway-linked stocks witnessed strong buying interest on Monday, with most counters trading firmly in the green and rising between 2% and 20% during intraday trade. The rally came after Indian Railways announced a revised fare structure effective from December 26, 2025, aimed at boosting revenues amid rising operational costs.
Stocks such as Jupiter Wagons, Titagarh Rail Systems, RailTel, IRCTC, RVNL and RITES were among the major gainers.
Under the revised fare structure, passengers travelling beyond 215 km will see a marginal increase in ticket prices. Journeys under 215 km in ordinary class remain unaffected, while passengers travelling up to 500 km will pay an additional ₹10 in both AC and non-AC coaches. For longer distances, fares will rise by 1 paise per km in ordinary class and 2 paise per km in Mail/Express non-AC and AC classes.
Indian Railways has clarified that the fare hike, primarily impacting long-distance travel, is aimed at meeting higher manpower and operational expenses. The move is projected to add nearly ₹600 crore annually to railway earnings.
Among individual stocks, Jupiter Wagons surged 20% to hit its upper circuit after promoter Tatravagonka AS acquired a 0.55% stake, or 28.72 lakh shares, for ₹135 crore. However, despite Monday’s sharp rise, the stock remains the weakest performer in the sector, down 38.5% year-to-date and over 43% below its 52-week high.
Similarly, IRCTC and BEML posted gains in the session but continue to trade significantly lower on a year-to-date basis and remain well below their respective 52-week peaks.
Market participants noted that while the fare hike announcement has acted as a short-term trigger, the broader performance of railway stocks continues to reflect concerns over valuations and execution challenges. Analysts said sustained recovery in the sector would depend on consistent order inflows, improved margins and long-term visibility in railway infrastructure spending.
