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Indian railway-linked stocks diverge on valuations and recent results
SMC Global Securities analyst Seema Srivastava said IRFC delivered the strongest Q1FY27 with zero NPA and a PAT that reached ₹58,792 crore for the quarter.
Indian railway-linked stocks are trading on very different fundamentals after the recent Q1 results cycle, as investors weigh alternative business models across Rail Vikas Nigam Ltd (RVNL), Indian Railway Finance Corporation (IRFC), IRCON International, and Indian Railway Catering and Tourism Corporation (IRCTC), according to LiveMint Markets.
Market experts characterized IRFC as a proxy for railway capex backed by the government, RVNL and IRCON as engineering, procurement and construction contractors, and IRCTC as a monopoly company. They also highlighted that the “which to buy” question depends on whether investors want infrastructure growth, annuity-like cash flows, or consumer monopoly exposure.
On performance, Seema Srivastava of SMC Global Securities said IRFC delivered the strongest quarter with zero NPA, and during Q1FY27 the company’s net worth hit a record ₹58,792 crore. IRCTC reported more than an 18% year-over-year rise in revenue with flat profit, while IRCON International saw a 9.5% year-over-year increase in revenue but a 27.9% drop in net profit for the April to June 2026 quarter.
Valuation comparisons also varied widely, with Seema Srivastava pointing to price-to-earnings multiples of 16 for IRFC, 30 for IRCTC, 21 for IRCON, and 56 for RVNL. She also cited RVNL’s weaker quarter, saying its PAT slipped 39.9% year-over-year to ₹153 crore, driven by a 74.8% drop in operating profit.