Railway-linked stocks witnessed a sharp rally of up to 13 per cent in Friday's trade, signaling renewed investor interest in the sector. RVNL surged 13.21 per cent to hit ₹391.40, while RailTel jumped 8.11 per cent to ₹385.45 and IRFC rose 8.65 per cent to ₹131.95. According to market reports, Texmaco Rail gained 4.47 per cent to ₹140.10, and IRCTC traded 3.79 per cent higher at ₹705.30. The primary trigger for this rally is the implementation of new passenger fare revisions that came into effect, marking the second revision in a year following an earlier hike in July.
The Ministry of Railways, Railway Board, has granted registration to Oriental Foundry Private Limited as a Wagon Leasing Company (WLC), enabling it to offer railway wagons on lease for operations on the Indian Railways network. According to the company's announcement to BSE Limited under Regulation 30 of SEBI Listing Regulations, this approval follows the subsidiary's application submitted in December 2025 for registration under the Wagon Leasing Scheme. Oriental Rail Infrastructure officially received this significant regulatory milestone for its wholly owned subsidiary to operate under the Wagon Leasing Scheme of Indian Railways.
According to government press releases, the railways has rationalized its passenger fare structure with the objective of balancing affordability for passengers and sustainability of operations. In the second-class ordinary category, there is no increase in fare for journeys up to 215 km, ensuring short-distance and daily commuters remain unimpacted. For longer distances, fares increase by ₹5 for 216-750 km journeys, ₹10 for 751-1250 km, ₹15 for 1251-1750 km, and ₹20 for 1751-2250 km. The revision for Mail/Express trains has been rationalized at 2 paise per kilometre across classes, viewed by investors as improving the financial health of the national transporter.
The WLC registration represents a strategic expansion for Oriental Rail Infrastructure into the wagon leasing segment, complementing its existing capabilities in wagon manufacturing. As reported by the company, this development is expected to enhance long-term business visibility and strengthen its position in the freight mobility value chain through comprehensive service offerings. The approval enables the company to establish a stronger presence across the wagon building, leasing, and rail logistics ecosystem, positioning it well within the current positive market sentiment for railway sector stocks.
Beyond the fare revision impact, market sentiment has turned constructive ahead of Union Budget 2026, with railway-linked stocks typically seeing heightened investor interest on expectations of stepped-up capital expenditure. According to the company's communication, Oriental Rail Infrastructure's diversification into wagon leasing operations is anticipated to create operational synergies and contribute to long-term value creation for stakeholders. The integrated manufacturing and leasing services approach positions the company to benefit from the sector's positive momentum and potential budget allocations for railway infrastructure development.
