Which Railway PSU Stock To Purchase After Q1 Results?

With Q1 FY26 earnings season wrapping up, Indian investors are actively seeking value buys. Amid GST reforms and India’s S&P rating upgrade, public sector undertakings (PSUs), particularly in the railway sector, have caught investor attention. Experts suggest focusing on fundamentally strong railway PSUs like RVNL, IRFC, and RailTel, especially given the government’s aggressive push for railway infrastructure.

Seema Srivastava, Senior Research Analyst at SMC Global, highlighted mixed performance across these stocks. IRFC emerged as the most stable, posting its highest-ever quarterly profit of ₹1,746 crore—up 11% YoY. Strong fundamentals like zero NPAs, a book value of ₹41.65, and a low-risk lending model make IRFC a top pick for steady returns.

RailTel delivered a 33% jump in revenue and 36% PAT growth YoY, though its margins dipped to 15.6% from 18.6%. While margin pressure poses short-term risks, RailTel remains a promising digital growth story.

RVNL, however, saw a 40% drop in PAT and a 4% revenue decline, making it a cautious bet for now.

Technically, RVNL is near crucial support at ₹310. A rebound is possible unless it breaks below this level, which may drag it to ₹255–₹260, said Shiju Kuthupalakkal of Prabhudas Lilladher.