By Admin 
IRFC Stock Jumps: Now about a month is left for the presentation of the Union Budget and even before the budget, Indian Railway Finance Corporation (IRFC) and Railway Vikas Nigam Limited (RVNL) A positive attitude is being seen among the investors regarding the shares. On the last trading day of the week, IRFC shares rose by about 7 percent to Rs 130.50 on BSE in early trade. Shares of Railway Vikas Nigam Limited are trading at 383.75 on BSE, up 11.01 percent at 10.30 am. This has become the most strongly performing PSU stock during the session. With this surge, it emerged as the most profitable stock in the railway PSU sector.
Expectations that the government will continue to give priority to capital expenditure (capex) in the railway sector have strengthened investor confidence in IRFC and RVNL. Due to long-term plans and strong policy support related to railways, the investment side of this stock seems to be getting strengthened once again.
The optimistic environment created regarding the budget is considered to be a major reason behind this rise in railway shares. After trading in a narrow range for a long time, IRFC shares are now rising on expectations of possible capex increase.
Why are railway stocks rising?
History has also witnessed that before the Union Budget, there is a rise in the shares related to railways, the main reason for which is the expectation of increasing expenditure on infrastructure by the government. Since IRFC is responsible for raising funds for railway expenditure, network expansion, rolling stock and major infrastructure projects, the company is likely to directly benefit from the increase in railway allocation in the budget.
An important reason for the improvement in market sentiment regarding IRFC is the increasing clarity regarding its funding profile. Compared to other infrastructure companies, where the risk of project delays is high, IRFC’s business model is considered relatively safe. Its income is based on long-term agreements with Indian Railways, which ensures stability in the company’s cash flows. This is why even in an uncertain market environment, investors are considering it as a defensive and reliable option.
Why is confidence in ISFC increasing?
Expectations of stability in interest rates and control of borrowing costs are also playing a big role in increasing investor confidence in IRFC. This has reduced the earlier concerns regarding margins and long-term profits to a great extent. In the year 2025, the performance of IRFC shares had been weak compared to the broader market and it had come under pressure due to profit-booking after the earlier rally, but due to this reason now its valuation seems to be at an attractive level to the investors.
IRFC is emerging as a suitable option for investors looking for PSU shares with stable returns, regular dividends and strong government support. The recent rise indicates that stake is being increased again from the perspective of long-term investment rather than short-term speculation.
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