Indian Railways Sets Ambitious Revenue Targets for FY27 Amid Fleet Expansion
Indian Railways has projected its earnings from passenger movement to reach Rs 87,300 crore in the financial year 2026-27, marking an increase of slightly over 9% compared to the revised estimate for the current fiscal year. This growth is attributed to the ongoing introduction of modern train services, including new-age Vande Bharat chair car and sleeper variants, Amrit Bharat trains, and additional conventional train services.
Current Fiscal Year Adjustments and Freight Revenue Outlook
However, the national transporter has revised downward its passenger transport revenue for the current year from the Budget Estimate of Rs 92,800 crore. This adjustment is due to a significant 10.6% decline in the total kilometers traveled by passengers, which is expected to persist through March 2026.
In the freight segment, the ministry has estimated earnings of approximately Rs 1.88 lakh crore for FY27. This figure matches the Budget Estimate for FY26 and represents a 6% increase over the revised estimate for the current fiscal year. Data indicates that railways is likely to generate around Rs 1.78 lakh crore by March, falling short of the current year's target by about 5.5%.
Freight Loading Targets and Revenue Shortfalls
Notably, revenue from goods transport is anticipated to miss its target despite railways maintaining its freight loading goal of 1,700 million tonnes for this year. Analysis reveals that the revenue decline stems from a reduction of approximately 1% in the average distance over which goods are transported, indicating shorter hauls than initially projected.
Minister Vaishnaw's Perspective on Railway Performance
Responding to inquiries about the national transporter's earnings, Railway Minister Ashwini Vaishnaw emphasized that railways has consistently increased revenue from both passenger and freight operations. He provided detailed figures, noting that passenger revenue rose from Rs 70,693 crore in FY24 to Rs 1.75 lakh crore in 2024-25, with the revised estimate for FY26 standing at Rs 80,000 crore.
Similarly, in the freight sector, revenue has grown from Rs 1.68 lakh crore in FY24 to Rs 1.71 lakh crore in 2024-25, and is projected at Rs 1.78 lakh crore in the current fiscal year's revised estimate.
When questioned about the likelihood of missing Budget Estimate targets, Vaishnaw explained that the government sets aspirational goals to motivate enhanced performance across the board. He further highlighted that railways has achieved net revenue for three consecutive years, underscoring its financial sustainability amidst evolving operational challenges.
