Best Railway Stocks in India for April 2025 – Based on 5-Year CAGR

The Indian railway system is often regarded as the backbone of the economy, covering thousands of kilometers and ranking as the fourth-largest railway network globally, after the US, China, and Russia. Managed by the Railway Board, which holds a monopoly over rail services in India, the network is known for its cost-effectiveness and efficiency, making it the preferred mode of transport for long-distance travel among Indian citizens.

As per the Indian Railways 2023 report, the railway sector aims to export ‘Made in India’ Vande Bharat trains to European, South American, and East Asian markets by 2025-26, marking a significant step toward expanding India’s presence in the global rail industry.

Let’s explore the top railway stocks in India for April 2025, ranked by their 5-year CAGR performance, market cap and net profit margin.

Top Railway Stocks in India in April 2025 – 5yr CAGR Basis

Note: The top railways stocks list here is as of March 28, 2025. The stocks are sorted as per the 5Y CAGR, and the market cap is above ₹1,000 crore. 

Overview of the Best Indian Railways Stocks

1. Jupiter Wagons Limited

Jupiter Wagons Limited designs manufactures, and supplies railway wagons, wagon components, and transportation equipment for the railway sector in both India and global markets.

In Q3 FY24, Jupiter Wagons Limited reported a revenue of ₹1,000.04 crore, up from ₹973.63 crore in Q2 FY24. The company’s net profit for the quarter stood at ₹97.86 crore, compared to ₹88.62 crore in the previous quarter. For FY23-24, the total revenue reached ₹3,641.25 crore, with a net profit of ₹332.80 crore.

Key metrics:

• Earning per Share (EPS): ₹8.95
• Return On Equity (ROE): 14.85%

2. Titagarh Rail Systems

Titagarh Rail Systems focuses on developing advanced transportation solutions, including semi-high-speed trains, urban metro systems, passenger coaches, and propulsion equipment.

In Q3 FY24, Titagarh Rail Systems reported a revenue of ₹902.18 crore, compared to ₹1,056.95 crore in the previous quarter. The company’s net profit stood at ₹68.94 crore, down from ₹85.12 crore in Q2. For FY23-24, Titagarh Rail Systems recorded a total revenue of ₹3,853.30 crore and a net profit of ₹296.91 crore.

Key metrics:

• EPS: ₹22.93
• ROE: 13.01%

3. Ramkrishna Forgings Ltd

Ramkrishna Forgings Ltd specializes in manufacturing and supplying forged, machined, and fabricated components across various industries, including automotive, railways, farm equipment, earthmoving, mining, construction, oil and gas, power, and general engineering.

Ramkrishna Forgings reported a revenue of ₹952.72 crore in Dec 2024, slightly up from ₹952.32 crore in Sep 2024, with a total revenue of ₹3,489.61 crore for FY23-24. The net profit stood at ₹99.55 crore in Dec 2024, compared to ₹182.80 crore in Sep 2024, while the FY23-24 net profit was ₹326.07 crore.

Key metrics:

• EPS: ₹24.48
• ROE: 15.19%

4. Texmaco Rail & Engineering Ltd

Texmaco Rail & Engineering Ltd, a subsidiary of the Adventz Group, is an engineering and infrastructure firm specialising in rolling stock manufacturing, hydro-mechanical equipment, steel castings, and railway EPC project construction.

Texmaco Rail & Engineering Ltd reported a revenue of ₹1,085.88 crore in Dec 2024, compared to ₹1,116.29 crore in Sep 2024, with a total of ₹3,502.87 crore for FY23-24. The net profit stood at ₹47.02 crore in Dec 2024, ₹48.45 crore in Sep 2024, and ₹112.69 crore for the fiscal year.

Key metrics:

• EPS: ₹4.57
• ROE: 7.06%

5. BEML Limited

BEML Limited, previously known as Bharat Earth Movers Limited, is a state-owned enterprise in India that produces a wide range of heavy machinery for earthmoving, railways, transportation, and mining. Headquartered in Bangalore, BEML is the second-largest manufacturer of earthmoving equipment in Asia.

In Q3 FY24, BEML Limited reported a revenue of ₹875.77 crore, up from ₹859.85 crore in the previous quarter. Net profit stood at ₹24.77 crore, compared to ₹51.41 crore in Q2 FY24. For FY23-24, the company recorded a total revenue of ₹4,054.33 crore and a net profit of ₹283.02 crore.

Key metrics:

• EPS: ₹63.22
• ROE: 10.31%

Top Railway Stocks in India in April 2025 – Market Cap Basis

Note: The best railways stocks list here is as of March 28, 2025. The stocks are sorted based on the market cap, and the market cap is above ₹1,000 crore. 

Top Railway Stocks in India in April 2025 – Net Profit Basis

Note: The best railways stocks list here is as of March 28, 2025. The stocks are sorted based on the net profit margin, and the market cap is above ₹1,000 crore. 

Key Factors to Consider Before Investing in Railway Stocks in India

Before investing in railway stocks, it is essential to evaluate the following aspects:

• Government Policies: Since Indian Railways is government-owned, its operations are shaped by policies on infrastructure, tariffs, and privatisation. Staying informed about policy changes is crucial.
• Financial Performance: Assess the financial stability of railway companies by analysing revenue growth, profitability, and debt levels.
• Technological Advancements: Innovations in automation, digitalisation, and electrification enhance efficiency, safety, and cost-effectiveness, influencing stock performance.
• Risk Factors: Consider potential regulatory, operational, and geopolitical risks that could impact the sector.
• Demand Trends: Railway stocks are influenced by passenger and freight demand, driven by factors like population growth, industrial activity, and trade.

Conclusion

While railway stocks offer promising investment opportunities, it is important to align them with your financial goals, risk tolerance, and investment horizon. Seeking right guidance from a financial advisor can help tailor investments to your specific needs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.