Rail sector revenue to grow 5% in FY26, wagon makers drive gains: ICRA

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Rail sector revenue to grow 5% in FY26, wagon makers drive gains: ICRA - Business Standard

Quick Summary:

The Indian railway sector is expected to see a moderate revenue growth of 5 per cent in FY'26, driven primarily by strong performance from wagon manufacturers, while construction entities in the sector may witness slower growth, an analysis by credit rating agency ICRA said.

The report highlights that the weighted average operating margins for the sector will remain healthy at around 12 per cent in FY26, supported by operating leverage benefits and stable input prices.

This comes amid sustained government investments in railway infrastructure, with the capital outlay increasing by 130 per cent over the past five years to Rs 2.52 lakh crore in 2025-26 (Budget Estimates), a statement said.