Rail Vikas Nigam Limited (RVNL), a railway infrastructure company, continued to trade higher for the fourth straight session on Wednesday, December 24, even as the broader market remained largely sideways.
RVNL share price opened at ₹344 apiece, compared with the previous close of ₹341.85, and maintained momentum in early trade to hit an intraday high of ₹349.40 apiece, its highest level since early October. The rally also took the stock’s four-day cumulative gain to 14.2%.
After remaining under pressure for a prolonged period, sentiment around railway stocks has improved, particularly after the government announced the rationalisation of passenger fares aimed at balancing rising operational costs while minimising the impact on passengers.
Under the revised fare structure, effective Friday, ordinary-class fares for journeys beyond 215 kilometers will rise by one paise per kilometer. Meanwhile, Mail and Express non-AC categories and all AC classes will see a uniform increase of two paise per kilometer.
The move is expected to generate around ₹600 crore in additional revenue during the remaining period of the current fiscal year. This marks the second fare rationalisation this fiscal year, following a hike on July 1, 2025, and is aimed at improving the financial sustainability of passenger services, which currently operate at a loss, with fares about 45% below cost and subsidised by freight earnings.
Ahead of the FY2027 Union Budget, the fare rationalisation is also expected to help Indian Railways improve its operating ratio, projected at 98.43% for the current fiscal year, Mint reported earlier.
Meanwhile, recent order wins have also supported the stock. Last week, RVNL received a Letter of Award from Northeastern Railway for the construction of the substructure of Important Bridge No. 50 (14 × 61.0 metres), featuring a double D-type well foundation for a double line with RDSO 25-tonne axle load standards over the River Gandak, between Paniyahwa.
RVNL share price trend
RVNL share price has remained under pressure since hitting an all-time high of ₹647 in July 2024 and has lost nearly 46% of its value since then. Although the stock has staged a recent recovery, it is still down about 18% year-to-date and is poised for its first annual decline since listing in 2019.
While RVNL’s near-term trend appears weak, its long-term performance remains solid. The stock has delivered steady gains over the years, trading nearly 450% higher over the past two years and about 1,400% higher over the last five-year period.
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