Investing in businesses with big order books is similar to sowing a seed into fertile ground — given time, attention, and the right environment, it guarantees a healthy, sustainable crop. Similarly, a strong order book reflects good future visibility of revenue and provides investors with a sense of stability in an otherwise volatile market.
In this context, the railway sector is a thrilling place to be. With the government’s emphasis on modernization, freight efficiency, and city transport, railway companies are receiving record-breaking orders. As per a recent ICRA report, profit in FY26 is likely to increase at a modest rate of 5% compared to the previous year, with steady profitability.
In this piece, we concentrate on the five biggest railway stocks with the largest order books at the close of FY25 — namely those that produce, construct, or undertake large projects. That is also the reason why well-known service-oriented brands like IRCTC and IRFC are left out, given that their business models are not a function of project order books. Combined, these businesses give us a sneak peek into how India’s rail dreams are incrementally transitioning from policy to real-world execution.
#1 Rail Vikas Nigam
Rail Vikas Nigam (RVNL) was incorporated in 2003 by the Government of India. It is engaged in implementing various types of rail infrastructure projects assigned by the Ministry of Railways (MoR).
These include doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, and production units. The company also shares freight revenue with Indian Railways as per the concession agreement entered into with the Ministry of Railways.
RVNL as of April 1, 2025 had an order book size of approximately Rs 1 lakh crore. This included Rs 45,000 crore of Indian Railways’ allocated projects and Rs 55,000 crore of competitive bids.
The future of the company is stable but not without bumps. Railway orders allotted have fallen from Rs 1.15 lakh crore a few years back to Rs 45,000 crore today. RVNL is making up for this by going on an aggressive new bid hunt across all sectors. Approximately 45% of its order book continues to be railway-related.
To cut reliance on EPC activity, RVNL is venturing into metro operations, road works, energy, and data centres. This diversification is to address stiff competition and safeguard margins, which continue to remain under threat as the company transitions to riskier, bid-based projects.
Management is expecting FY26 turnover of Rs 21,000 crore, with improvement gradually on the cards. The company is also expanding overseas, with present overseas orders at Rs 4,000 crore. RVNL wants to take this to two to three times the current level.
New business opportunities such as Vande Bharat train JV can begin earning revenues by FY27. RVNL is also foraying into battery storage, solar, and nuclear businesses.
In all, RVNL is consolidating from a safe, railway-centric player into a diversified infra player. Growth opportunities are encouraging, but execution risks and margin pressures continue to be the things to monitor.
Its share price fell by 31.2% in the last one year.
RVNL Share Price Performance – 1 Year Chart
#2 BEML
BEML manufactures a wide range of heavy earthmoving equipment. These cater to the mining and construction industry. The company also makes vehicles for defense forces. In addition, it produces coaches for metro systems and Indian Railways.
As of April 1, 2025, the order book of BEML was at Rs 22,000–Rs 23,000 crore. It had an addition of Rs 6,800 crore in FY25, which was a growth of 28% compared to the last year. Around 60% comes from Rail and Metro, with mining and defence contributing 40%. Mining is likely to give 20%.
The firm is looking for 20% CAGR and planning to double its order book over the next few years. Rail and Metro orders will increase with Bangalore Metro, LHB coach deliveries, and likely large MRVC orders. The new capacities in Bangalore and Bhopal will enable BEML to ship up to 750–800 cars per annum in two to three years.
On the defence front, BEML is looking for firm execution of high-mobility vehicle orders and war-booked procurements. The segment can more than double in FY26. BEML is shifting from vehicle platforms to system-level delivery and placing greater emphasis on “sustenance” (spares and services), which already accounts for 26% of revenue and is likely to cross 30%.
Margins are directed to enhance by 1.5%. Attention is on curbing material cost, better product mix, and increasing systems business.
Delays in cash collection of metro contracts, inventory lowering, and quality of forging and casting are areas of concern. Skill deficiencies in manpower and necessity of cutting-edge technology adoption also require focus.
The firm proposes Rs 1,800 crore of capex in five stages, beginning with Rs 225 crore for Bhopal. Development of high-speed and aluminium train technologies is also in progress.
BEML’s future is good but subject to timely implementation, success in diversification, and overcoming operational difficulties.
In the past one year, its share price is down 12.3%.
BEML Share Price Performance – 1 Year Chart
#3 Ircon International
Ircon International commenced its business in 1976 as a railway construction company. It started diversifying in 1985. Today, it operates as an integrated engineering and construction PSU. The company specializes in large and technologically complex infrastructure projects. It works in sectors such as railways, highways, and others.
On April 1, 2025, Ircon International’s order book was Rs 20,500 crore. There is around 58% from competition bidding and 42% from nomination orders. Almost 90% is domestic, with the remaining international. Around 70–75% of the revenue still originates from the railways business.
In FY25, Ircon recorded revenue of Rs 11,131 crore and PAT of Rs 728 crore. Margins were affected by project losses, such as DFCC and Chennai Metro. Competition and aggressive bidding also compressed margins. For FY26, turnover is likely to remain comparable to FY25. Margins can fall by 0.5% to 1%.
Ircon is expanding into new segments. It has secured its first Kavach order of Rs 253 crore and another Rs 194 crore tower order. More orders in these safety systems are in the pipeline. The company has also ventured into signalling diagnostics, hydro power (Arunachal project of Rs 453 crore), and building construction in North Frontier Railway.
FY25 order inflows were Rs 2,600 crore. In the first two months of FY26, Rs 1,150 crore of orders have been received. Ircon has put in bids of Rs 9,200 crore and has further bids pending shortly. Abroad, Ircon has operations in Algeria and Myanmar, and has completed works in Sri Lanka, Bangladesh, and Nepal.
Issues are cash flow lag, execution risk, and margin squeeze. Road and coal linkages also involve capital blockages. Ircon aims to monetize certain assets, although government approvals remain pending.
Diversification and new verticals promise to mitigate some issues, but the marketplace is still competitive and harsh. Discipline in execution and maintaining margins shall be crucial in the future.
In the past one year, its share price nose-dived 40.2%.
Ircon International Share Price Performance – 1 Year Chart
#4 Titagarh Rail Systems
Titagarh Rail Systems was incorporated in 1997. It is mainly engaged in manufacturing and selling freight wagons. The company also makes passenger coaches, metro trains, train electricals, steel castings, specialised equipment, bridges, and ships. It caters to both domestic and export markets.
As on April 1, 2025, Titagarh Rail Systems’ standalone order book was approximately Rs 11,200 crore. Further, its portion in joint venture orders was Rs 13,326 crore. It generates about 70% of revenue from the railway space, such as freight wagons, metro coaches, and Vande Bharat trains.
In FY25, Titagarh manufactured 9,431 wagons, an all-time high in India. Though wheelset shortages caused the delays, supply is anticipated to become normal from June 2025. Wagon production capacity is 12,000 units per annum with revenue potential of Rs 4,000–Rs 4,500 crore.
Passenger segment is one of the growth drivers. Production is scaling up to 20–25 coaches per month in FY26 and could double to 40–50 by FY27. Ahmedabad and Surat Metro, Bangalore Metro, and Vande Bharat are some of the bigger projects.
The propulsion business supplied 636 traction motors in FY25, with a target of 1,500–1,800 soon. The segment has the potential to hit Rs 1,500 crore annual revenue level.
Titagarh is also foraying into safety and signalling systems and shipbuilding. A new shipyard facility at Falta is being developed, with the strategy and CAPEX plan due soon.
Challenges continue to include issues in wheelset supplies, import delays of metro materials, and fluctuations in margins in the passenger segment. The company also has potential non-cash losses arising from its Italian subsidiary.
FY26 and FY27 are regarded as turning points. Titagarh will transition from a wagon-centric business to a diversified, high-value portfolio. Execution, ramp-up, and supply chain resilience will be key.
In the past one year, its share price slipped 48.1%.
Titagarh Rail Systems Share Price Performance – 1 Year Chart
#5 RITES
Established in 1974, RITES is a public sector enterprise. It is a leading player in the transport consultancy and engineering sector in India. The company offers diversified services and has a wide geographical reach. It is the only export arm of Indian Railways for providing rolling stock overseas, except to Thailand, Malaysia, and Indonesia.
As on April 1, 2025, RITES had an all-time record order book of Rs 8,900 crore. Export orders amounted to Rs 1,350 crore. Consultancy orders were Rs 3,000 crore. Turnkey orders approximated Rs 4,200 crore. Approximately 70% of revenue continues to originate from the railways, while the remaining comes from roads, urban transport, ports, and other segments.
The company is looking for 20% growth in revenue in FY26, with 20% EBITDA margins and 15–16% PAT margins. Management is all about crisp execution to turn this order book into revenues.
Exports will recover after two sluggish years. Mozambique and Bangladesh deliveries begin in FY26. RITES wants to hold one export order every quarter and more than one overall order a day.
It is growing international consultancy in Africa, Southeast Asia, Latin America, and the Middle East. The firm is still a consultancy player, even in turnkey jobs, and adheres to a low capex model (less than Rs 100 crore).
Margins are under pressure from competition and hard bargaining. Quality assurance business is stabilizing but will take time to get to previous profit levels.
RITES is aiming for its record revenue and profit in future years. Prospects are good, but success will hinge on execution, margin protection, and order mix discipline.
In the past one year, its share price plummeted 27.8%.
RITES Share Price Performance – 1 Year Chart
Conclusion
Though these rail companies have solid order books and encouraging pipelines of growth, investors need to look at the entire picture before making a judgment. In a recent report, Kotak Institutional Equities said there is a widening gap between valuations and fundamentals for some railway PSUs such as IRCON and RVNL. Most of these shares are trading on premium valuations, underpinned by cash balances and other earnings, but not necessarily from core operational expansion.
In addition, with incomplete visibility on new large capex and firm earnings acceleration, long-term price performance might not always reflect order book expansion.
That being said, a healthy order book still indicates good business momentum and long-term potential. Investors would be well advised to also consider other criteria like valuation multiples, indebtedness, cash flows, and execution history alongside order pipeline length.
A considerate, level-headed approach will enable alignment between expectations and true business realities — keeping investment journeys on course.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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