2 weeks ago
Railway Stocks After Q1 Results: IRFC Best Fundamentally, RVNL Promising
Four companies in India help take care of the country's big railway network.
The Indian Railway Finance Corporation, or IRFC, is like a bank that lends money to build new railway tracks and trains.
Rail Vikas Nigam Ltd, or RVNL, and IRCON International are like construction companies that build railway projects.
Indian Railway Catering and Tourism Corporation, or IRCTC, is the company that sells train tickets and food on trains.
In the first three months of the financial year, each company shared how much money it made.
IRFC had the strongest quarter and did not have any loans going bad.
RVNL made much less profit than before, and its earnings dropped sharply.
IRCON's profit also fell a lot, while IRCTC earned more money but its profit stayed flat.
Some experts, including analysts at SMC Global Securities, say IRFC is the safest buy because its numbers are strong.
Other experts, including chart watchers at Anand Rathi, think RVNL could bounce back after a big price drop, but that rise is not yet confirmed.
IRFC posted the strongest quarter among the four railway stocks with zero NPA and a record net worth of ₹58,792 crore in Q1FY27.
RVNL's profit after tax slipped 39.9% year-on-year to ₹153 crore, driven by a 74.8% drop in operating profit.
IRCON International reported a 9.5% YoY rise in revenue but a 27.90% fall in net profit for the April-June 2026 quarter.
IRCTC's revenue grew more than 18% YoY, but its profit remained flat.
PE multiples stand at 16 for IRFC, 21 for IRCON, 30 for IRCTC and 56 for RVNL; fundamentals favour IRFC while charts favour RVNL's reversal setup.
- Who
- Investors deciding among four flagship Indian railway-linked stocks — RVNL, IRFC, IRCON International and IRCTC — with analysis from experts at SMC Global Securities and Anand Rathi.
- What
- Comparison of Q1 FY27 results, valuations and chart patterns to determine which railway stock to buy.
- Where
- India.
- When
- After the Q1 results 2026 season, covering the April to June 2026 quarter.
- Why
- Because of the government of India's special focus on railway infrastructure and investors' search for value picks in their portfolios.
Fundamental View
Technical View
Best railway stock to buy
Fundamental View
IRFC is best suited for portfolios due to zero NPA, record net worth and a low PE of 16, while RVNL is least suited on fundamentals.
Technical View
RVNL shares offer the most interesting trend-reversal setup after a sharp correction, making them most promising on charts, with IRCTC technically second-best.
How to read RVNL's valuation
Fundamental View
RVNL's PE multiple of 56 makes it the most expensive and the weakest pick based on earnings.
Technical View
The sharp correction has improved RVNL's risk-reward, though a confirmed bullish breakout still needs higher volumes, an improving RSI, a positive MACD crossover and a shift to higher highs and higher lows.
Key facts
- Companies compared
- RVNL, IRFC, IRCON International, IRCTC
- Quarter
- Q1FY27 (April-June 2026)
- IRFC net worth
- ₹58,792 crore, a record, with zero NPA
- RVNL PAT
- ₹153 crore, down 39.9% YoY
- IRCON net profit
- Down 27.90% YoY despite 9.5% revenue growth
- IRCTC revenue
- Up more than 18% YoY, profit flat
- PE multiples
- IRFC 16, IRCON 21, IRCTC 30, RVNL 56
- Expert verdict
- IRFC best on fundamentals; RVNL most promising on charts
Quotes
Seema Srivastava
Senior Research Analyst at SMC Global Securities
“On the valuations front, IRFC shares are available at a PE multiple of 16, IRCTC shares are available at a PE multiple of 30, RVNL shares are standing at a PE multiple of 56, while the IRCON shares are currently available at a PE multiple of 21 only.”
livemint.com
“RVNL shares appear to offer the most interesting trend‑reversal setup, particularly because of the possibility of a base formation after the sharp correction. However, it should not yet be considered a confirmed bullish breakout.””
livemint.com
Sources
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