INDIAN RAILWAYS FARE HIKE SET TO BENEFIT MOST RAILWAY STOCKS

The Ministry of Railways has hiked train ticket prices by 1 paise per km for ordinary class beyond a journey of 215 km, and 2 paise per km for non-AC classes of mail/express trains and AC classes of all trains. This is the second time in a year that the Ministry has revised passenger train fares. The earlier fare hike was implemented in July. This fare increase has given a boost to the stocks of railway companies like

, , and as these companies stand to gain from such fare hike. Apart from these government companies, private players like and also stand to benefit as the government is likely to increase the capex on improving railway infrastructure. The Union budget for FY27 may earmark a record Rs 1.3 trillion for rail safety, nearly half of Indian Railways' capital expenditure, amid persistent concerns over accidents and the slow rollout of protection systems.