The proposed merger, if approved, will bring together India’s two prominent railway companies to create a larger entity, online news portal PSU Connect reported, citing official sources. It added that the proposal has been initiated by the Ministry of Railways and will now have to undergo a standard review process. This includes approvals from the Ministry of Finance, the Department of Public Enterprises and the Cabinet Committee on Economic Affairs (CCEA).
The reported merger aims to create a unified entity with combined specialised expertise, enhance execution capacity by leveraging RVNL’s project management strengths and IRCON’s expertise in turnkey projects and railway construction, as well as increase international presence and operational efficiency, the report further said.
The Economic Times could not independently verify the report.
Both IRCON and RVNL are listed on the BSE and NSE. Hence, the reported merger will likely involve a share swap mechanism for the shareholders of the two PSU companies.
IRCON shares surged nearly 12% to trade at Rs 149 apiece on the NSE, on track to extend gains for the second day after a seven-session losing streak. Shares of Rail Vikas Nigam Limited (RVNL), meanwhile, jumped nearly 7% to trade at Rs 298 apiece after a four-day losing streak. These stocks recently declined sharply as rising geopolitical tensions between Iran and Israel and the United States dampened sentiment for railway stocks.
IRCON shares have gained more than 3% in one week but are still down 17% in 2026 so far. The company has a market capitalisation of Rs 13,924 crore. As of December 31, the central government owned a 65% stake in the company, while the remaining 35% was held by the public.RVNL shares, meanwhile, have fallen more than 7% in one week and are down 19% in 2026 so far. The company currently has a market capitalisation of Rs 61,185 crore. As of December 31, the central government owned a 73% stake in the company, while the remaining 27% was held by the public.
Other railway stocks also recorded sharp gains today. RailTel Corporation of India shares jumped nearly 5%, while IRFC and CONCOR shares gained around 2% each. Jupiter Wagons shares rallied more than 13%.
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