Railways expects passenger and freight revenue growth in FY27, but misses budget targets in FY26 | India News

NEW DELHI: Railways expects passenger transport revenue at Rs 87,300 crore in 2026-27, a little more than 9 per cent higher than the revised estimate (RE) for the current fiscal, as it continues to launch more new-age Vande Bharat soft-seat and sleeper trains and Amrit Bharat trains besides adding other conventional trains.However, with people likely to travel less kilometers by nearly 10.6% by March 2026, the company has revised down its passenger revenue this year to a budget estimate (BE) of Rs 92,800 crore.Similarly, in the freight segment, the ministry expects revenue of around Rs 188 crore in FY27, which is the same as the osf BE in FY26 and 6% higher than the RE in the current fiscal. The data also showed that the Railways may end up generating revenue of about Rs 1.78 billion by March, about 5.5% below the target set for this year.It is worth noting that although the railway has not lowered its freight target of 1.7 billion this year, freight transportation revenue will still be below the target. The drop in revenue was due to about 1% less distance traveled by rail to move goods, meaning distances may be shorter than rail initially estimated, the data showed.Replying to a question on the national transporter’s revenue, Railway Minister Ashwini Vaishnaw on Monday said the company continues to increase passenger and freight revenue. Passenger revenue increased from Rs 70,693 crore in FY24, he added to Rs 75,368 crore RE of Rs 80,000 crore in 2024-25 and Rs 80,000 crore in FY26. Similarly, in the freight segment, revenue increased from Rs 168 crore in FY24 to Rs 171 crore in 2024-25 and RE for the current fiscal was pegged at Rs 178 crore.On why Railways is unlikely to meet the BE target, Vaishnaw said the government always sets an “ambitious” target so that everyone works hard and performs better than before. He added that the Railways has continued to record net income for the past three years, which indicates that the day-to-day operations of the national transporter are sound.As revenue rises, the railways expects to improve its operating ratio (OR) from 98.82 per cent in the current financial year to 98.4 per cent in FY27, according to budget documents. OR means money spent for every 100 rupees earned. Railways aims to end the next financial year with a net income of Rs 3,000 crore, about 35% higher than the forecast of Rs 1,957 crore in FY26.