Indian Railways Falls Short of Freight Target for FY26 Amid Coal Cargo Decline
Railways falls short of freight target in FY26 as coal cargo declines
Business StandardImage: Business Standard
In the fiscal year 2025-26, Indian Railways transported 1,670 million tonnes of cargo, a 3.3% increase from the previous year but 30 million tonnes short of its target. A decline in coal cargo, which constitutes over half of its freight, was offset by growth in iron ore and cement transportation.
- 01Indian Railways transported 1,670 million tonnes of cargo in FY26, missing its target by 30 million tonnes.
- 02Coal cargo saw a rare decline of 0.5%, totaling 818 million tonnes.
- 03Iron ore and cement loading increased by 6.74% and 4.74%, respectively.
- 04Freight earnings rose to approximately ₹1,77,754 crore, a 1.44% increase year-on-year.
- 05Passenger traffic grew to 741 crore, with total revenue reaching approximately ₹80,000 crore.
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In the fiscal year 2025-26, the Indian Ministry of Railways reported transporting 1,670 million tonnes of cargo, which represents a 3.3% increase compared to the previous year but falls short of the revised target by 30 million tonnes. Notably, coal cargo, which typically constitutes over half of the freight, experienced a 0.5% decline, totaling 818 million tonnes. In contrast, iron ore loading increased by 6.74%, reaching 190.12 million tonnes, while cement loading grew by 4.74% to 157.17 million tonnes. The overall freight earnings for the railways reached approximately ₹1,77,754 crore, marking a 1.44% increase from ₹1,75,302 crore in the previous fiscal year. Additionally, Indian Railways reported a significant rise in passenger traffic, with 741 crore passengers carried in FY26, a 3.54% increase from the 716 crore in FY25, resulting in total revenue of around ₹80,000 crore, a 5.96% increase year-on-year.
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The decline in coal cargo could affect supply chains reliant on rail transport, potentially leading to increased costs for businesses that depend on coal.
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