Top 5 Railway Stocks to Buy in 2026 With the Biggest Order Books and Growth Potential

India's railway sector continues to remain one of the biggest beneficiaries of the government's infrastructure push, with record investments being made in railway modernization, high-speed corridors, freight infrastructure, metro rail projects, Vande Bharat trains, and dedicated freight corridors. Backed by multi-year capital expenditure plans under the National Rail Plan and PM Gati Shakti, railway companies continue to report healthy executable order books, providing strong revenue visibility for the next several years.

For long-term investors, a company's order book is one of the most important indicators of future growth because it reflects confirmed business that will be executed over the coming years. Companies with large executable order books generally enjoy better earnings visibility, stronger cash flows, and relatively stable business growth. However, investors should also compare valuations, profitability, balance sheet strength, and execution capability before making investment decisions.

Based on the latest available information as of 30 June 2026, including FY26 investor presentations, FY25 annual reports, exchange filings, management commentary, and latest market data, here are the Top 5 Indian railway stocks ranked by executable order book, along with their latest valuation metrics and investment outlook.

Rank	Company	Order Book	CMP (₹)	Market Cap (₹ Cr)	P/E	ROE	Order Book / Market Cap
1	RVNL	₹99,300 Cr	236	49,183	56.2	9.0%	2.02x
2	Titagarh Rail Systems	₹28,400 Cr	~740	~18,000	~48	~15%	1.58x
3	IRCON International	₹23,900 Cr	131	12,341	20.7	11.9%	1.94x
4	BEML	₹15,900 Cr	1,709	14,236	100.7	10.5%	1.12x
5	Jupiter Wagons	₹7,500 Cr	269	11,501	67.2	17.4%	0.65x

1. RVNL - India's Largest Railway EPC Company

RVNL remains India's largest railway EPC company with an executable order book of ₹99,300 crore, nearly twice its market capitalization. The company continues to benefit from large railway infrastructure projects, metro systems, transmission projects, highways, and government-backed infrastructure spending. Its strong order pipeline provides excellent long-term revenue visibility, although the stock currently trades at a relatively premium valuation.

Key Metrics	Value
Order Book	₹99,300 Cr
Market Cap	₹49,183 Cr
P/E	56.2
ROE	9.0%
Dividend Yield	0.73%
Investment View	Largest Order Book Leader

2. Titagarh Rail Systems - Best Private Railway Manufacturing Play

Titagarh Rail Systems has emerged as India's leading private railway rolling stock manufacturer. The company has built a strong presence in passenger coaches, freight wagons, metro coaches, and Vande Bharat manufacturing, giving it one of the strongest growth profiles in the railway sector. Its order book of ₹28,400 crore provides substantial earnings visibility while exports remain an additional growth opportunity.

Key Metrics	Value
Order Book	₹28,400 Cr
Market Cap	~₹18,000 Cr
P/E	~48
ROE	~15%
Dividend Yield	0.10%
Investment View	Best Private Growth Stock

3. IRCON International - Best Value Railway PSU

IRCON International offers one of the most attractive valuations among major railway stocks. Despite maintaining an order book of ₹23,900 crore, the company trades at a significantly lower valuation than most peers while maintaining healthy profitability and a consistent dividend payout. Its diversified domestic and international EPC projects continue to support long-term business visibility.

Key Metrics	Value
Order Book	₹23,900 Cr
Market Cap	₹12,341 Cr
P/E	20.7
ROE	11.9%
Dividend Yield	1.45%
Investment View	Best Value PSU

4. BEML - Diversified Rail and Defence Company

BEML operates across railway equipment, metro coaches, defence vehicles, mining machinery, and heavy engineering. While rail remains a significant growth driver, diversification across defence and mining reduces business concentration risk. However, the company currently trades at one of the highest valuations within the railway sector.

Key Metrics	Value
Order Book	₹15,900 Cr
Market Cap	₹14,236 Cr
P/E	100.7
ROE	10.5%
Dividend Yield	0.31%
Investment View	Diversified Infrastructure Play

5. Jupiter Wagons - High Growth Freight Wagon Manufacturer

Jupiter Wagons has established itself as one of India's leading freight wagon manufacturers. Apart from wagons, the company is expanding into wheelsets, brake systems, and railway components. It also delivers the highest ROE among the top five railway companies, reflecting efficient capital utilization and strong profitability.

Key Metrics	Value
Order Book	₹7,500 Cr
Market Cap	₹11,501 Cr
P/E	67.2
ROE	17.4%
Dividend Yield	0.37%
Investment View	High Growth Manufacturing Play

Market Analysis

India's railway sector remains one of the strongest long-term infrastructure themes supported by sustained government capital expenditure, increasing freight movement, dedicated freight corridors, metro rail expansion, station redevelopment, Vande Bharat train production, and the broader "Make in India" initiative. These structural drivers are expected to generate a steady pipeline of new projects over the coming years, benefiting companies with proven execution capabilities and strong order books.

Among the five companies, RVNL continues to dominate in terms of executable order book, making it one of the strongest long-term EPC plays in the sector. Titagarh Rail Systems offers attractive manufacturing-led growth driven by metro and passenger coach demand, while IRCON International stands out as the most reasonably valued PSU with a healthy balance sheet and attractive dividend yield. BEML provides diversification across rail, defence, and mining, whereas Jupiter Wagons offers one of the strongest profitability profiles supported by robust freight infrastructure demand.

Investors should remember that while a large order book provides excellent revenue visibility, execution efficiency, operating margins, working capital management, and valuation remain equally important factors. Companies that consistently convert their order books into profitable revenue while maintaining healthy cash flows are likely to deliver superior shareholder returns over the long term.

Investment Comparison

Investment Style	Best Pick	Reason
Largest Order Book	RVNL	Nearly ₹1 lakh crore backlog
Best Private Growth	Titagarh Rail Systems	Vande Bharat & Metro Growth
Best Value Stock	IRCON International	Lowest P/E & Healthy Dividends
Diversified Infrastructure	BEML	Rail + Defence + Mining
Highest Profitability	Jupiter Wagons	Highest ROE

Key Takeaways

Highlights	Company
Largest Order Book	RVNL
Best Manufacturing Growth	Titagarh Rail Systems
Best Valuation	IRCON International
Diversified Business Model	BEML
Highest ROE	Jupiter Wagons

Which railway stock has the largest order book in India?

RVNL has the largest executable order book among listed railway companies at approximately ₹99,300 crore.

Which railway stock appears most attractively valued?

Based on current valuation metrics, IRCON International trades at the lowest P/E ratio among the top five railway stocks.

Which private railway stock offers the strongest growth potential?

Titagarh Rail Systems remains one of the strongest private railway manufacturing companies, benefiting from Vande Bharat, metro rail, and freight wagon demand.

Why is the order book important for railway companies?

A large executable order book provides long-term revenue visibility, supports earnings growth, and indicates future business opportunities.