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Indian Railways has prioritised manufacturing of 238 AC EMU rakes

ICICIdirect Research 24 Aug 2026 DISCLAIMER

News: Indian Railways has prioritised manufacturing of 238 AC EMU rakes (2,856 coaches; 12 coaches/rake) for Mumbai suburban services through ICF (120 rakes), RCF (71) and MCF (47), with supplies starting in 2027 and the entire requirement targeted for completion by 2030. The programme has an estimated rolling-stock value of ₹19,293 crore, translating to ₹6.8 crore per coach (~₹81 crore/rake), and will support timely deployment of rolling stock alongside MUTP infrastructure commissioning.

View: The programme provides a multi-year opportunity for railway electrical and component suppliers, with propulsion/traction systems—including traction converters, motors, transformers and auxiliary systems—potentially accounting for ~25–35% of the rolling-stock value, implying an estimated ₹4,800–6,750 crore opportunity or ~₹1.7–2.4 crore per coach. BHEL, Siemens, CG Power, Hind Rectifiers are among the key potential beneficiaries, though order allocation will depend on ICF/RCF/MCF tenders and RDSO-approved vendor participation.

Impact: Positive

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