Indian Railways earns ₹2.65 lakh crore in FY25, improves efficiency with 98.32% operating ratio

Indian Railways has registered strong financial and operational performance for the financial year 2024-25, clocking a total income of ₹2.65 lakh crore. With both passenger and freight revenues rising, the Railways has also improved its operating ratio to 98.32%, a positive shift from the previous year’s 98.43%.

An operating ratio of 98.32% indicates that the Railways spent ₹98.32 to earn every ₹100, marking a slight but significant improvement in operational efficiency. This performance showcases better cost management and rising revenue across major streams—particularly reserved passenger travel and freight transportation.

According to data from April 1, 2024, to March 31, 2025, Indian Railways carried over 715 crore passengers. Of these, 81 crore travelled in reserved categories like AC and sleeper class, while 634 crore were unreserved passengers. Suburban travel alone made up more than 55% of this unreserved segment, a heavily subsidised service.

On the freight side, Indian Railways recorded a cargo loading of 1,617 million tonnes (MT), compared to 1,590.68 MT last year. This growth of 1.7% or 26.70 MT reflects consistent demand and improved logistics handling across the network.

Passenger revenue witnessed a healthy 6.4% growth, while freight income saw a moderate 1.7% increase. Officials attribute the revenue boost to higher occupancy in reserved categories and better scheduling of freight operations, along with modernisation in ticketing and logistics systems.

With this performance, the Indian Railways continues to assert its role as a critical driver of the economy. The figures for FY25 highlight a sustained focus on efficiency, increased ridership, and optimized freight movement, indicating promising prospects for the coming fiscal.