IRFC vs RVNL vs RailTel: Which Railway PSU stock is best for long-term investors?

The Indian government’s renewed focus on railway infrastructure is once again turning the spotlight on railway PSU stocks. With years of underperformance behind them and fresh capital commitments ahead, stocks like IRFC, RVNL, and RailTel are catching investor attention — especially after a steep market correction.

What’s Driving Railway PSU Stocks Now?

Railway PSUs saw heavy selling pressure following the Union Budget 2025, which didn’t announce any major infrastructure projects for the sector. However, sentiments have shifted after the Union Cabinet approved four new railway infrastructure projects worth ₹18,658 crore. This development sparked renewed buying interest, hinting at a potential trend reversal.

Avinash Gorakshkar, Head of Research at Profitmart Securities, noted that while market reactions were muted initially due to the broader market slump, value buying emerged later in the week — a sign that momentum could continue.

IRFC vs RVNL vs RailTel: Expert Recommendations

Prashanth Tapse, Senior Vice President of Research at Mehta Equities, offered insights for different investor profiles:

IRFC (Indian Railway Finance Corporation)

Ideal for conservative, long-term investors.

Why?

It operates as a financing arm for Indian Railways, enjoying government backing, a low-risk business model, and attractive dividend yields.

RVNL (Rail Vikas Nigam Limited)

Suited for high-risk investors looking for long-term growth.

Why?

A key player in Indian Railway’s modernization — including track laying, electrification, and station upgrades. A strong order book and steady revenue growth support its prospects.

Balanced Portfolio?

Tapse suggests having both IRFC and RVNL to benefit from stability and growth opportunities.

Technical Outlook & Share Price Targets

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlights that railway PSU stocks are showing signs of recovery after steep corrections.

IRFC

Corrected 52% over 33 weeks.

Currently forming a higher low with a bullish Marubozu candle — indicating strong buying interest.

Target: ₹140

RVNL

Down 52% in 38 weeks.

Bounced back from major support at ₹311 with a bullish pattern.

Target: ₹388

RailTel

Declined 56% over 39 weeks.

Avoided a breakdown, hinting at a technical bounce.

Target: ₹333

Jain believes all three are showing bottoming signals but picks IRFC as the strongest candidate due to its better technical structure and strength.

Bottom Line

Railway PSUs are making a comeback after deep corrections, supported by government initiatives and attractive valuations.

Conservative investors: IRFC is a solid, stable pick.

Risk-takers: RVNL offers high-growth potential.

Technical traders: IRFC seems to have the smoothest recovery path.

Disclaimer: These are expert views — not investment advice. Investors should consult certified financial advisors and assess personal risk profiles before investing, as market conditions are subject to change.