RVNL vs IFCI vs Railel vs Ircon: Which Railway -PSU shares to buy before the Q2 results 2025?

The earnings season in the second quarter officially kicked in, as nearly 200 companies will release their financial results for the September quarter in the coming week. PSU shares such as RVNL, IFCI, Railel, Ircon will also soon reveal their results in September. Share market investors may wonder what PSU railway share before the results should buy. “Among the Indian Railway PSUs, to choose the most attractive stock before the Q2 FY26 results, requires a careful evaluation of financial performance, order book strength, strategic initiatives and long-term growth potential,” says Seema Srivastava, senior research analyst at SMC Global Securities. Why PSU Railway Stocks are in focus? Union Minister Ashwini Vaishnaw announced on Tuesday, October 7, that the Union Cabinet has cleared four major railway projects worth approximately £ 24,634 crore, covering 18 districts in four states. These projects are aimed at improving the capacity of cargo handling by 78.4 million tons. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the approval. The approved projects include the 314 km Wardha -Bhusawal and fourth lines, the 84 km Gondia -Dongargarh fourth line over Maharashtra and Chhattisgarh, the 259 km Vadodara -Ratlam third and fourth lines in Gujarat and Madhya Pradesh, and the 237 km Itarsi -Bina -Bina. stretch, and the 237 km Itarsi -Bin -bina -bina Pradesh. RVNL vs IFCI vs Railel vs Ircon: Q1 Results Comparison Srivastava further said that the consideration of Rail Vikas Nigam Limited (RVNL), Railel Corporation, IFCI (although a financial institution, it has a limited railway exposure through infrastructure financing), and IRCon International Limited) Distinction Profiles. In the comments on the Q1 results, book order value, she further added -RVNL RVNL still benefits from the diversified project portfolio, including electrification, bridges, subway projects, and now a £ 90,65 crore video -supervision order from the Southern Railway. The strategic joint venture with Texmaco Rail (51% Stake) positions it to enter the manufacture of rolling shares, directly in line with India’s railroad modernization and in India initiatives. However, the company reported a 39.9% drop in the net profit from the first quarter to £ 134.53 on a 4% revenue drop, indicating the pressure of the margin in the short term. While its long-term projects and JV plans offer growth-visibility, earnings remain muted in the short term. Railel Railel stands out for its strong Q1 performance, with an income increase of 33% to Rs.744 crore and 36% net profit growth to Rs.66 crore. Project work, which contributed Rs.409 crore, was an important driver. The order book is healthy at Rs.7,197 crore, with recent orders, including £ 210 crore from Bihar Education Project Council and £ 166 from BSNL. Railel’s focus on rural broadband, Prime Minister Gati Shakti, and Railway Modernization Initiatives position it for sustainable growth. Although Ebitda margins are slightly compressed due to the execution costs of the project, the diversified revenue streams, the robust project pipeline and the planned capital expenditure of £ 350 crore make it a resilient choice. Ircon Ircon reported a challenging quarter, with a 26.7% drop in PAT to Rs.164.1 crore and a decrease of 21.9% in turnover, although Ebitda margins were at 17.1%. The delays of execution affected financial statements, but the massive £ 20,973 crore order book, including Rs.15.724 Crore of Railways, and Strategic Mou’s with Coal India offers a strong growth runway. The risk remains executive, and the results in the short term can remain volatile. IFCI IFCI, despite a turnaround in the first quarter, is not a core rail operator. The negative capital tourist and dependence on consolidation strategies makes it less attractive to rail-centered investments. Which PSU trace stock should you buy? According to Srivastava, Railel appears as the most compelling choice for investors looking for stability and growth before Q2FY26. “The strong Q1 performance, consistent order inflow, strategic alignment with government infrastructure initiatives and manageable execution risks makes it better positioned for yield earnings momentum, while providing a sustainable long-term growth trajectory compared to RVNL and IRCON, which has been on the short-term margin and execution challenges. On the other hand, Anshul Jain, head of research at Lakshmishree Investment, believes that IFCI is currently standing out with the strongest technical setup. “The share has already delivered a sharp rally of 95% within three weeks and has been consolidating for the past 18 weeks, which has formed a solid base. This sideways movement has helped absorb prior profits and build up power for the next leg higher. bullish and preparing for another exposition, ”Jain said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions.