What is the impact of the new fare rationalization on RVNL stock?

The fare rationalization is positively impacting RVNL stock, leading to its fourth consecutive day of gains.

When will the new Indian Railways passenger fares take effect?

The revised passenger fares are set to take effect on Friday, December 26, 2025.

How much additional revenue is expected from the fare hike?

Indian Railways is expected to generate around ₹600 crore in additional revenue from the fare rationalization this fiscal year.

Home / Business and Economy / RVNL Shares Surge: Fare Hikes Boost Railway Stock

RVNL Shares Surge: Fare Hikes Boost Railway Stock

24 Dec, 2025

•

Summary

RVNL stock climbed for the fourth consecutive session.
Passenger fares are set to increase by one to two paise per kilometer.
This fare adjustment is expected to generate ₹600 crore in revenue.

RVNL Shares Surge: Fare Hikes Boost Railway Stock

Rail Vikas Nigam Limited (RVNL) stock experienced its fourth consecutive day of gains, hitting an intraday peak of ₹349.40 on Wednesday, December 24. This rise is buoyed by improved sentiment in the railway sector, particularly following the government's decision to rationalize passenger fares.

The updated fare structure, effective Friday, December 26, will introduce a modest increase of one paise per kilometer for ordinary-class travel beyond 215 kilometers. Mail, Express, and all AC classes will see a uniform hike of two paise per kilometer. This strategic adjustment is projected to inject approximately ₹600 crore into Indian Railways' revenue for the remainder of the current fiscal year.

This fare revision is a key step towards enhancing the financial sustainability of passenger services, which have been operating at a deficit. Alongside recent order wins, such as the one from Northeastern Railway, this move is expected to contribute positively to RVNL's financial performance and the broader Indian Railways' operating ratio.