Railway PSU stocks have garnered significant investor attention in recent years, driven by robust returns and improved financial performance. This momentum has been supported by increased government capital expenditure and a focused push towards modernization and infrastructure development in the railway sector.
Recently, three key state-owned railway companies — Rail Vikas Nigam Ltd (RVNL), IRCON International, and RailTel Corporation of India — announced their Q4 results, offering fresh insights into their financial health and growth prospects.
All three companies have delivered impressive returns over the past few years. In light of their Q4 results 2025, here is a comprehensive analysis of which railway PSU stock to buy as the most promising investment opportunity going forward.
RailTel Q4 Results 2025
RailTel Corporation of India reported a net profit of ₹113.4 crore in the fourth quarter of FY25, registering a growth of 46.3% from ₹77.53 crore in the corresponding period last year. The Navratna public sector undertaking’s (PSU) revenue from operations in Q4FY25 increased 57% to ₹1,308.28 crore from ₹832.7 crore, year-on-year (YoY).
EBITDA during the March quarter rose 53.8% YoY to ₹180 crore, while EBITDA margin dropped 27 basis points (bps) YoY to 13.73%.
RailTel Corporation focuses on providing telecom and digital infrastructure to Indian Railways, including broadband services, VPNs, and modernizing communication systems
“Among the three, RailTel reported the strongest Q4 performance. With a Return on Capital Employed (ROCE) of 21.8% and Return on Equity (ROE) of 16.5%, RailTel continues to deliver strong capital efficiency. Its full-year sales growth of 35.4% further reinforces its position as a high-growth performer in the railway PSU segment,” said Gaurav Goel, Founder & Director at Fynocrat Technologies.
RVNL Q4 Results 2025
RVNL is primarily responsible for executing railway infrastructure projects such as track doubling, electrification, and station development.
The railway PSU’s net profit fell 4% YoY to ₹459 crore, while consolidated revenue from operations in Q4FY25 also declined 4% YoY to ₹6,427 crore. At the operating level, RVNL’s EBITDA during the quarter ended March 2025 decreased 5% YoY to ₹432.9 crore and EBITDA margin contracted to 6.7% from 6.8% YoY.
“RVNL’s performance in the Q4 was not strong. While return on equity (ROE) is 14% and ROCE is 14.7%, which are fairly good, the overall financial performance for FY25 was weaker compared to previous years,” said Goel.
IRCON International Q4 Results 2025
IRCON International also reported a weak quarter, with revenue dropping 10% from last year to ₹3,412 crore, and net profit falling 15% to ₹211 crore. For the full year, sales also went down by 12.7%. The company faced pressure on its profit margins, and its profits were lower than in FY24. However, IRCON still gave a final dividend of ₹1 per share.
“IRCON International acts as a construction and engineering arm, undertaking large-scale infrastructure projects not only in railways but also in roads, highways, and overseas contracts.
Its ROE was 11.9% and ROCE was 12.1%. Even though it was a tough year, the company is still in good financial shape,” Goel said.
RailTel vs RVNL vs IRCON: Which railway PSU stock to buy?
All three companies play critical roles in India’s railway infrastructure development. However, based on Q4 results and full-year FY25 performance, RailTel emerges as the strongest contender. Both RVNL and IRCON remain fundamentally strong, but their recent numbers were relatively muted.
According to Gaurav Goel, investors who are thinking long-term should look at the bigger picture, not just one quarter.
“RailTel has strong growth potential as India builds up its digital infrastructure, but its earnings might go up and down. RVNL is closely linked to India’s big spending on railways, so it could do well over time, even if its recent results were not strong. IRCON works on many different projects, including some outside India, which could make it a good choice for investors who want something more stable and focused on value,” Goel said.
In the end, the best option depends on whether the investor wants fast growth, steady returns from infrastructure, or a safer, more balanced investment, he added.
RailTel vs RVNL vs IRCON: Technical Outlook
From a technical perspective, RailTel currently offers the most favourable setup among the three, according to Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi.
“On the monthly chart, RailTel share price has formed a bullish engulfing pattern, signaling strong upward momentum. The stock has also broken out of its upper Bollinger Band, indicating heightened volatility and a potential for sustained gains. Currently trading near ₹375, RailTel shares provide a favourable risk-reward setup with a suggested stop loss at ₹340. The medium-term target range is ₹420 – ₹430,” Dongre said.
RVNL shares, in contrast, remain in a consolidation phase, moving within the ₹380 – ₹420 range. A breakout beyond this zone is required for a definitive directional move.
IRCON share price has recently experienced a notable correction and lacks a clear breakout or bullish technical structure in the medium term, suggesting limited immediate upside potential.
“Among RailTel, RVNL, and IRCON, RailTel shares stand out with its bullish chart pattern and breakout confirmation. Investors looking for exposure to a technically strong stock may consider buying RailTel shares in the ₹370 – ₹380 range, with a target of ₹420 – ₹440 and a stop loss at ₹340,” Dongre said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
