New Delhi: Indian Railways has shown signs of financial improvement in the fiscal year 2024-25, reporting a better Operating Ratio (OR) than the previous year. The OR, a crucial metric that indicates financial performance, stood at 98.32%, an improvement from 98.43% in FY 2023-24. This means that the Railways spent ₹98.32 to earn every ₹100 during the year ending March 31, 2025.
Revenue and Expenditure Up
In FY 2024-25, Indian Railways reported total expenditure of ₹2.63 lakh crore, up from ₹2.52 lakh crore in 2023-24. The total earnings increased to ₹2.65 lakh crore from ₹2.56 lakh crore last year. Notably, non-fare revenue crossed ₹11,000 crore, sourced from avenues such as advertisements and parcel services, not passenger tickets.
Gains Across Segments
The Railways saw growth across passenger, freight, and other revenue streams:
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Passenger revenue rose 6.4% to ₹75,239 crore.
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Freight earnings increased by 1.7%, reaching ₹1.71 lakh crore, compared to ₹1.68 lakh crore in FY 2023-24.
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Other revenue, primarily from non-fare sources, witnessed the highest jump, increasing 19.8% to ₹11,562 crore.
Record Freight Movement
Indian Railways achieved a historic milestone by breaking freight and revenue records for the fourth consecutive year. Freight movement exceeded 1.61 billion tonnes, making India the second-largest railway freight network globally, overtaking the United States. Only China surpasses India in rail freight movement.
Net Revenue and Future Targets
The provisional net revenue for FY 2024-25 stood at ₹2,342 crore, down from ₹3,259.68 crore in FY 2023-24. However, the budget estimate for FY 2025-26 projects a net revenue of ₹3,041.31 crore, with expected earnings of ₹92,800 crore from passenger services and ₹1.88 lakh crore from freight.
Operational Reforms Drive Progress
Indian Railways attributes the improvement to internal reforms focused on cost reduction and enhanced revenue generation. In an official statement, the Railways said, “We have focused on reducing costs and increasing income.” Efforts are underway to further enhance operational efficiency, improve services, and ensure continued financial health.
