IRFC leads railway route in 2025 as sector sees Rs 1.32 lakh cr wealth erosion. Why 2026 comeback looks tricky?
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The Indian railway sector, which remains a centrepiece of the country’s capex story, turned out to be a disappointment for domestic investors in 2025, wiping out investor wealth by a whopping Rs 1.32 lakh crore. The loss of investor appetite can be attributed to a story of immense promise flipping on its head. A consensus view among analysts is the lack of incremental positive triggers and the absence of a strong narrative around the railway story. With policy continuity now priced in and investor attention shifting to financials, consumption and defence, the sector could have a tough time in the medium term. State-run IRFC has emerged as the biggest wealth eroder among rail-linked stocks in 2025, with its market capitalisation shrinking by Rs 49,608 crore so far this year, mirroring a sharp decline of 25% in its share price on a year-to-date basis. Another PSU railway stock, Rail Vikas Nigam Limited (RVNL), has seen its market value fall...