New Delhi, April 02: Indian Railways reported strong operational and financial performance in FY26, driven by steady growth in passenger traffic and record freight movement, reinforcing its position as the backbone of the country’s transport and logistics ecosystem.
Passenger Growth and Revenue Expansion
Passenger traffic rose 3.54 per cent year-on-year to 741 crore in FY26, compared to 716 crore in the previous fiscal, reflecting sustained demand for rail-based mobility. Correspondingly, passenger revenue increased 5.96 per cent to approximately ₹80,000 crore, up from ₹75,500 crore in FY25, indicating improved monetisation and higher ridership across segments.
Record Freight Volumes
Freight loading reached an all-time high of 1,670 million tonnes (MT), registering a 3.25 per cent growth over the previous year. The number of wagons handled also increased 4.56 per cent to 29.18 million, highlighting enhanced capacity utilisation and operational efficiency.
Commodity-led Growth Momentum
Growth in freight was primarily driven by double-digit expansion in key sectors, including fertilisers (13.49 per cent) and pig iron and finished steel (13.11 per cent), reflecting strong agricultural demand and industrial activity. Core infrastructure commodities also maintained momentum, with iron ore transport rising 6.74 per cent to 190.12 MT and cement loading increasing 4.74 per cent to 157.17 MT.
Broad-based Regional Performance
Freight growth remained geographically diversified, with multiple zones reporting double-digit increases. South Western Railway led with 14.89 per cent growth, followed by North Central Railway (12.62 per cent), East Coast Railway (10.42 per cent), and West Central Railway (10.06 per cent). Other zones also recorded positive growth, underscoring balanced expansion across the network.
Freight Earnings and Revenue Mix
Freight earnings stood at ₹1.78 lakh crore in FY26, up 1.44 per cent year-on-year. Iron ore remained the largest revenue contributor at ₹14,600 crore, followed by cement (₹13,599 crore), pig iron and steel (₹12,181 crore), fertilisers (₹9,039 crore), food grains (₹8,312 crore), and mineral oil (₹7,249 crore).
Outlook
The sustained growth in both passenger and freight segments highlights Indian Railways’ improving operational metrics and its critical role in supporting economic activity. Rising demand for bulk logistics, coupled with continued investments in infrastructure and capacity, is expected to further strengthen its contribution to national connectivity and supply chain efficiency.
