4 Stocks That Could Benefit From Indian Railways’ 7,900 km Track Renewal Plan by FY27

Synopsis: With 7,500 km of track renewal underway in FY26, Indian Railways is expected to further expand the project in the next fiscal year. The companies mentioned here have an order book value up to Rs 90,000 Cr.

Indian Railways is accelerating infrastructure upgrades with over 7,500 km of track renewal currently underway in FY26 and an additional 7,900 km planned for FY27, strengthening route reliability and safety. This large-scale renewal improves train operations and network resilience, encompassing modern track components and smoother transitions. Extensive mechanised ballast deep screening exceeding 7,400 km last year is ongoing this year, boosting stability and ride quality.

To enhance operational efficiency, Indian Railways has added over 1,100 track maintenance machines since 2014, enabling faster upkeep and reduced disruptions. Approximately 15,000 km of fencing has been installed to prevent trespassing and cattle accidents.

Sustained upgrades have increased track sections capable of 110 km/h+ speeds from 31,000 km in 2014 to over 84,000 km currently, covering about 80 percent of the network and supporting safer, faster train services. In the Railway infra space, there exist stocks that have the potential to benefit from this opportunity. Some are being analysed below, which are as follows

GPT Infraprojects Ltd

GPT Infraprojects Ltd, incorporated in 1980, is a leading infrastructure company headquartered in Kolkata, West Bengal. The company is engaged in construction of bridges, railways, roads and urban infrastructure projects across India, with strong execution capabilities. 

In the railway sector, GPT Infraprojects undertakes construction of railway bridges, track works, rail overbridges (ROBs), and associated civil infrastructure for Indian Railways and metro projects.

In the latest quarter GPT Infraprojects Ltd saw a YoY revenue growth of 2 percent, going from Rs 278 Cr in Q3FY25 to Rs 284 Cr in Q3FY26.
The YoY Net Profits fell by 4 percent, going from Rs 21 Cr in Q3FY25 to Rs 20 Cr in Q3FY26. As of Q2FY26, the company has an order book of Rs 4415 Cr.

Rail Vikas Nigam Ltd (RVNL)

Rail Vikas Nigam Ltd, incorporated in 2003, is a Government of India enterprise headquartered in New Delhi. The company specializes in rail infrastructure development, including project implementation for railway lines, electrification, metro projects and capacity enhancement works. 

RVNL plays a key role in executing railway projects such as new line construction, doubling, gauge conversion, electrification, signaling, and large-scale capacity augmentation for Indian Railways.  As of Q2FY26, the company has an order book of Rs 90,000 Cr.

In the latest quarter Rail Vikas Nigam Ltd saw a YoY revenue growth of 5 percent, going from Rs 4,855 Cr in Q2FY25 to Rs 5,123 Cr in Q2FY26. The YoY Net Profits fell by 19 percent, going from Rs 287 Cr in Q2FY25 to Rs 231 Cr in Q2FY26.

GR Infraprojects Ltd

GR Infraprojects Ltd, incorporated in 1995, is an integrated infrastructure company headquartered in Ahmedabad, Gujarat. It is engaged in EPC and BOT projects across highways, roads, railways, metro, power transmission and urban infrastructure segments. 

In the railway sector, the company executes EPC contracts involving track laying, earthworks, bridges, stations, metro rail corridors, and allied railway infrastructure projects. As of Q2FY26, the company has an order book of Rs 21,114 Cr.

In the latest quarter GR Infraprojects Ltd saw a YoY revenue growth of 15 percent, going from Rs 1,394 Cr in Q2FY25 to Rs 1,602 Cr in Q2FY26. The YoY Net Profits fell by 2 percent, going from Rs 194 Cr in Q2FY25 to Rs 190 Cr in Q2FY26.

RITES Ltd

RITES Ltd, incorporated in 1974, is a Government of India enterprise headquartered in Gurugram, Haryana. The company provides consultancy, engineering and project management services in transport infrastructure, railways, highways, ports and urban mobility projects. 

RITES is deeply involved in the railway sector by offering design, supervision, rolling stock inspection, feasibility studies, and project management services for railway projects in India and overseas. As of Q2FY26, the company has an order book of Rs 9090 Cr.

In the latest quarter RITES Ltd saw a YoY revenue growth of 1 percent, going from Rs 541 Cr in Q2FY25 to Rs 549 Cr in Q2FY26.
The YoY Net Profits growth is at 33 percent, going from Rs 82 Cr in Q2FY25 to Rs 109 Cr in Q2FY26.

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