RVNL vs IRFC vs RailTel: Q1 results for the 2025 season are almost over, and Indian stock market investors are busy finding their value picks. Some investors might be tempted to buy PSU stocks after the announcement of GST reforms and the S&P rating upgrade on India. According to stock market experts, one should look at railway PSU stocks as the Government of India (GoI) is highly ambitious about railway infrastructure expansion. However, they advised looking at only those railway PSU stocks that look strong from a fundamental perspective. They also suggested looking at Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corp (IRFC), and Railtel Corporation of India.
RVNL vs IRFC vs RailTel: Q1 results review
Comparing the Q1 results 2025 of the three railway PSUs, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “In Q1 FY26, the railway PSU space showcased a sharp divergence in performance, offering investors a clear view of varied risk-reward profiles. IRFC stood out as the most stable performer, delivering its highest-ever quarterly profit of ₹1,746 crore, an 11% YoY increase, supported by impeccable fundamentals—zero NPAs, a solid book value of ₹41.65 per share, and a healthy debt-to-equity ratio of 7.44. IRFC’s predictable, low-risk lending model to Indian Railways continues to provide earnings stability, making it a compelling pick for investors prioritising steady returns over high-risk growth.”
On RailTel Corporation Q1 results 2025, the SMC Global Securities expert said, “RailTel delivered an equally impressive top-line performance, with Revenue surging 33% to ₹744 crore and PAT climbing 36% YoY to ₹66 crore, underscoring its role as a growth driver in railway digital infrastructure. However, operating margins contracted from 18.6% to 15.6%, raising short-term concerns. While this margin pressure signals execution challenges, RailTel’s strategic alignment with India’s expanding digitisation and connectivity agenda keeps its long-term growth potential intact for investors with higher risk appetite.”
Seema Srivastava, a certified Chartered Accountant (CA), also said that RVNL faced a challenging quarter during Q1FY26, with PAT plunging ~40% year-on-year (YoY) and Revenue from operations declining 4.05% year-on-year (YoY) to ₹3,908.77 crore.
RVNL vs IRFC vs RailTel: Which stock to buy?
Asked about the railway PSU stock, which looks strong from the fundamental perspective, Seema Srivastava of SMC Global Securities, said, “Given its current earnings trajectory, RVNL appears a wait-and-watch candidate until operational performance stabilises. For long-term allocation, IRFC offers stability, RailTel caters to growth seekers, and RVNL requires cautious monitoring.”
On what technical chart suggestes about these three railway PSU stocks, Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, said, “The entire railway pack have been subdued for quite some time with most of the stocks witnessing significant erosion from their peak zones and has been trading with a weak bias for quite some time as of now. So, in comparison among the railway stocks RVNL, IRFC and RAILTEL, I feel RVNL is better placed technically with the stock almost arriving near the previous major low of ₹310, which is the crucial support zone and needs to be sustained to maintain the overall trend intact.”
The Prabhudas Lilladher expert said that the RSI has reached the highly oversold zone, currently hovering near the 25 zone, and the chances of a revival cannot be ruled out in the coming days. The overall bias would improve only if there is a decisive move past the ₹355 zone, and one can expect a further rise thereafter.
“The view shall be negated if there is a decisive break below the ₹310 zone, which shall trigger a fresh downward slide, weakening the trend, with the next major support positioned near the ₹255 to ₹260 zone,” Shiju Kuthupalakkal of Prabhudas Lilladher said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
