Synopsis: The Government of India plans to raise Rs 80,000 crore via stake sales in seven railway PSUs, where it holds up to 86.36 percent, funding Indian Railways modernization and growth.
Indian Railways, one of the world’s largest rail networks, is a vital backbone of India’s economy, connecting cities, towns, and villages across the country while supporting passenger mobility, freight movement, industrial growth, and regional development. In the Union Budget FY27, the sector received a record allocation of around Rs 2.77 lakh crore, more than 10 per cent higher than the previous year’s Rs 2.52 lakh crore and the highest-ever outlay the industry has received.
This was aimed at accelerating new rail lines, track doubling, electrification, rolling stock expansion, safety upgrades, station modernisation, and high-speed corridor development.
News
As per reports and sources, the Government of India is planning to raise Rs 80,000 crore by selling stakes in seven listed railway PSUs between FY27 and FY30, while retaining at least 51 percent ownership for control. The move supports capital recycling, strengthens public finances, and aligns with the broader monetisation roadmap of Indian Railways long term goals.
This disinvestment drive might be part of the National Monetisation Plan, aiming to unlock value from railway PSUs, fund infrastructure upgrades, improve efficiency, and attract wider investor participation while maintaining strategic oversight and long-term development priorities for Indian Railways’ future growth needs. The 7 railway stocks in this context to witness their promoters’ stake dilution are as follows:
Indian Railway Finance Corporation
IRFC or Indian Railway Finance Corporation is the dedicated financing arm of Indian Railways, raising funds from domestic and global markets to finance rolling stock, track assets, and infrastructure projects. It primarily earns through leasing and lending to the Ministry of Railways, benefiting from stable margins, sovereign backing, and predictable long-term cash flows.
As of Q3FY26, the promoter of the company- The president of India acting through the Ministry of Railways holds about 86.36 percent stake in the firm, and is the only promoter for the entity.
In the latest quarter the company saw its YoY revenue fall by 1.5 percent, going from Rs 6,763 Cr in Q3FY25 to Rs 6,661 Cr in Q3FY26, The YoY Net Profits for the same period grew by 10.5 percent, going from Rs 1,631 Cr in Q3FY25 to Rs 1,802 Cr in Q3FY26.
Indian Railway Catering and Tourism Corporation
IRCTC or Indian Railway Catering and Tourism Corporation handles online railway ticketing, catering services, packaged drinking water, and tourism operations for Indian Railways. Its ticketing platform processes millions of bookings daily, while catering and tourism businesses add diversified revenue streams. A strong digital presence and monopoly positioning support consistent profitability and high margins.
As of Q3FY26, the promoter of the company, the President of India, holds about 62.4 percent stake in the firm, acting as the exclusive promoter stakeholder.
In the latest quarter the company saw its YoY revenue grow by 18 percent, going from Rs 1,225 Cr in Q3FY25 to Rs 1,449 Cr in Q3FY26. The YoY Net Profits for the same period grew by 15.5 percent, going from Rs 341 Cr in Q3FY25 to Rs 394 Cr in Q3FY26.
Rail Vikas Nigam Limited
RVNL or Rail Vikas Nigam Limited is an engineering and project execution company responsible for implementing rail infrastructure projects such as track doubling, electrification, bridges, and metro works. It executes projects on turnkey and EPC basis for Indian Railways and other clients, benefiting from strong order books, government backing, and growing infrastructure spending.
As of Q3FY26, the promoter of the company, the President of India, holds about 72.84 percent stake in the firm, serving as the company’s single promoter. In the latest quarter the company saw a YoY revenue growth of 2.5 percent, going from Rs 4,567 Cr in Q3FY25 to Rs 4,684 Cr in Q3FY26, The YoY Net Profits for the same period grew by 4 percent, going from Rs 312 Cr in Q3FY25 to Rs 324 Cr in Q3FY26.
Ircon International
It is a railway construction and engineering PSU specializing in track laying, electrification, signaling, highways, and turnkey infrastructure projects in India and abroad. The company undertakes EPC and consultancy contracts, leveraging technical expertise and overseas presence, while maintaining a strong balance sheet supported by government-backed railway development programs.
As of Q3FY26, the promoter of the company, the President of India, though chairman of the Railway Board, holds about a 65.17 percent stake in the firm, functioning as the sole sponsoring promoter.
In the latest quarter the company saw its YoY revenue fall by 19 percent, going from Rs 2,613 Cr in Q3FY25 to Rs 2,119 Cr in Q3FY26. The YoY net profits for the same period grew by 16 percent, going from Rs 86 Cr in Q3FY25 to Rs 100 Cr in Q3FY26.
RailTel Corporation of India
This company provides broadband, telecom, and IT infrastructure services using Indian Railways’ nationwide fiber network. It offers data center, cloud, cybersecurity, and e-governance solutions to enterprises and government agencies. Growing demand for digital connectivity, smart stations, and government technology initiatives drives revenue visibility and long-term growth potential.
As of Q3FY26, the promoter of the company, the President of India, holds about 72.84 percent stake in the firm, being the lone promoter shareholder.
In the latest quarter the company saw its YoY revenue grow by 19 percent, going from Rs 768 Cr in Q3FY25 to Rs 913 Cr in Q3FY26. The YoY net profits for the same period fell by 5 percent, going from Rs 65 Cr in Q3FY25 to Rs 62 Cr in Q3FY26.
RITES Limited
This is a one of the leading transport infrastructure consultancy and engineering firms offering design, project management, inspection, and export services across railways, highways, ports, and urban transport. The company earns asset-light consultancy income and executes turnkey assignments domestically and globally, supported by strong technical capabilities and long-standing relationships with government agencies.
As of Q3FY26, the promoter of the company i.e the President of India, holds about 72.2 percent stake in the firm, continuing as the company’s only promoter entity. In the latest quarter the company saw its YoY revenue grow by 6 percent, going from Rs 576 Cr in Q3FY25 to Rs 609 Cr in Q3FY26. The YoY net profits for the same period grew by 5.5 percent, going from Rs 109 Cr in Q3FY25 to Rs 115 Cr in Q3FY26.
Container Corporation of India
CONCOR or Container Corporation of India operates logistics services including containerized rail freight, inland container depots, cold chains, and supply chain solutions. It connects ports with hinterland markets through multimodal transport networks. Strong infrastructure, strategic terminals, and India’s rising trade volumes support long-term growth in container logistics and dedicated freight corridor utilization.
As of Q3FY26, the promoter of the company- the president of India via the Ministry of Railway- holds about a 54.8 percent stake in the firm, standing as the exclusive promoter of the enterprise.
In the latest quarter the company saw its YoY revenue grow by 4.5 percent, going from Rs 2,208 Cr in Q3FY25 to Rs 2,308 Cr in Q3FY26. The YoY net profits for the same period fell by 9 percent, going from Rs 367 Cr in Q3FY25 to Rs 335 Cr in Q3FY26.
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