Synopsis: Indian Railways has planned to manufacture an additional 1,500 Vande Bharat coaches in the coming years. Among the four beneficiary railway sector stocks mentioned here, some companies have delivered an exceptional profit CAGR of up to 883 percent
Indian Railways has reversed its earlier decision to halt the production of Vande Bharat chair car coaches and has approved the manufacture of 1,500 new coaches between FY27 and FY30. These coaches will be formed into 88 new rakes, including 68 rakes with 16-car configurations and 20 rakes with 20-car configurations, aimed at replacing ageing Shatabdi Express trains on key intercity routes.
The move marks a significant expansion of semi-high-speed daytime rail services, with Vande Bharat chair car trains capable of operating at speeds of up to 160 kmph, offering faster travel and improved passenger comfort.
Production Plan and Strategic Shift
As of December 2025, around 96 Vande Bharat chair car rakes have already been manufactured, of which 82 are currently in operation, while the rest are held in reserve or awaiting deployment in zones such as Southern and Northern Railways. Production of the new coaches will be shared among ICF Chennai, which will build 720 coaches, RCF Kapurthala with 336 coaches, and MCF Raebareli with 444 coaches.
After a temporary slowdown due to a focus on sleeper variants, the renewed large-scale production supports the phased withdrawal of older Shatabdi rakes and aligns with Indian Railways’ broader modernisation and fleet upgrade strategy.
This news signals us that a boost in the manufacturing of Vande Bharat Chair could benefit several railway linked stocks, therefore the stocks in focus are as follows-
Titagarh Rail Systems Ltd
Titagarh Rail Systems Ltd manufactures rolling stock including freight wagons, passenger coaches, and metro trains, alongside heavy earthmoving equipment and steel castings. Incorporated in 1997, the company is headquartered in Kolkata.
It is a key player in India’s rail sector, it serves Indian Railways and international clients with specialized wagons, bridges, and shipbuilding capabilities, leveraging advanced manufacturing in wagon design and Vande Bharat projects for growth in rail infrastructure.
The company has Rs 7026 Cr worth Vande Bharat Orders which are to be executed with its JV parter BHEL, while the total order book as of Q2FY26 is at Rs 15,077 Cr.
In the latest quarter Titagarh Rail Systems saw its revenue fall by 24 percent, going from Rs 1,057 Cr in Q2FY25 to Rs 799 Cr in Q2FY26. The YoY Net Profits fell by 54 percent, going from Rs 81 Cr in Q2FY25 to Rs 37 Cr in Q2FY26. The company has a profit 3 year profit CAGR of 883 percent, while the sales CAGR for the same period is at 38 percent.
Airfloa Rail Technology Ltd
Airflow Rail Limited specializes in designing and manufacturing high-speed train components, aerodynamics solutions, and lightweight structures for metro and mainline rail networks. Incorporated on 1998, it is headquartered in Bengaluru, Karnataka, India, focusing on innovative rail tech like pantographs and aerodynamic kits.
The company targets Make in India initiatives, partnering with OEMs for metro projects in India and exports, emphasizing R&D in sustainable rail mobility and advanced composites for efficiency, and in the latest conference call, the company has also mentioned that it will be focusing majorly on Vande Bharat door systems due to high volume and betterment of the bottom line. The company’s order book as of Q2FY26 stands at Rs 455 Crore.
In the YoY half yearly growth of the company stands at 7 percent, going from Rs 85 Cr in H1FY25 to Rs 91 Cr in H1FY26. The YoY Net Profits growth is at 20 percent, going from Rs 10 Cr in H1FY25 to Rs 12 Cr in H1FY26. The company has a 3 year profit CAGR of 127 percent, while the sales CAGR for the same period is at 12 percent.
Ramkrishna Forgings Limited
Ramkrishna Forgings Ltd produces forged components, machined parts, and even assemblies for automotive, rail, oil & gas, and other heavy engineering sectors. Incorporated on April 24, 1981, the company is headquartered in Kolkata, with manufacturing facilities in Jamshedpur, Rajgangpur, and Kanthi.
It supplies critical forgings to global giants like Caterpillar and Indian Railways. In Q2FY26, the company saw an inflow of new orders worth Rs 1116 Cr, out of which Rs 296 Cr have come from the Railway sector.
In the latest quarter Ramkrishna Forgings saw its YoY revenue rise of 2.3 percent, going from Rs 1,074 Cr in Q3FY25 to Rs 1099 Cr in Q3FY26. The company saw a Net Profit of Rs 21 Cr in Q3FY25 , which fell by 33 percent to Rs 14 Cr in Q3FY26.
BEML Limited
BEML Ltd manufactures mining equipment, defense vehicles, and construction machinery, apart from this the company is also into making rail coaches. Incorporated on May 21, 1964, the company is headquartered in Bengaluru. It is a PSU under Ministry of Defence, and excels in metro coaches for cities like Delhi and Bangalore, and has been supporting India’s infra push with exports to Africa and Southeast Asia.
Apart from metro cars and other electric Multiple units in the railway space, the company has also developed Vande Bharat Sleeper Trains in the house itself. As of H1FY26, the company’s order book stands at Rs 16342 Cr.
In the latest quarter BEML saw a YoY revenue fall by 2.4 percent, going from Rs 860 Cr in Q2FY25 to Rs 839 Cr in Q2FY26. The YoY Net Profits fell by 9 percent, going from Rs 51 Cr in Q2FY25 to Rs 48 Cr in Q2FY26. The company has a 3 year profit CAGR of 31 percent, while the sales CAGR for the same period is at a negative 2 percent.
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