Shares of wagon makers fell up to 9 per cent in Monday's trade even as the railway capex in the Budget 2025 included Rs 45,530 crore dedicated to rolling stock. Titagarh Rail Systems Ltd slumped 7.55 per cent to Rs 882.80. Texmaco Rail & Engineering Ltd plummeted 6.77 per cent to hit a low of Rs 165.70. Jupiter Wagons tumbled 8.58 per cent to Rs 345.10.
Prabhudas Lilladher said the physical addition target of coaches and wagons has been raised by 19.1 per cent and 26.7 per cent, respectively, over FY25's revised expectations. It sees the development as positive for Jupiter Wagons Ltd, Texmaco Rail & Engineering Ltd and Titagarh Wagons Ltd, among others.
The Union Budget 2025 failed to meet investors’ high expectations pertaining to infra capex, with total capex up nearly 11 per cent over FY25 revised estimate and 5 per cent compared with FY25 budgeted estimate, Nuvama said. "The rolling stock was a bright spot in the rail capex pie. Outlays for water and affordable housing too were sluggish while there was nil allocation for ‘Smart City’ mission in the Budget 2025," Nuvama said.
The domestic brokerage said the tepid growth in capex is disappointing for companies in the roads and water segments, but continued focus on rail rolling stock should aid companies such as Titagarh Wagons and Texmaco Rail.
Vivek Lohia, Managing Director of Jupiter Wagons Limited said: “India’s investment in rolling stock goes beyond infrastructure—it is a strategic driver of industrial growth, economic efficiency, and sustainable mobility. The 2025-26 Union Budget reinforces this vision with a record Rs 2.52 lakh crore capital outlay for railways, including Rs 45,530 crore dedicated to rolling stock, marking a decisive step in modernizing the railway network and strengthening its role in economic development."
Lohia expects the investment to accelerate the adoption of advanced rolling stock like Vande Bharat trains and WAG-12 locomotive, enhancing safety, efficiency, and passenger comfort.
"With freight movement set to expand, this initiative will help lower logistics costs and increase rail’s modal share from 27 per cent to 45 per cent by 2030 under the National Rail Plan (NRP)," he said.
The FY26 outlay for metro rail, meanwhile, was up 35 per cent and 19 per cent over FY25 Budget estimates and revised estimates.