Indian Railways recorded its highest-ever gross revenue of Rs 2.74 lakh crore in FY26, marking a 3.2% increase from Rs 2.65 lakh crore in the previous financial year.

The rise highlights steady growth in railway earnings, supported mainly by freight operations and passenger services. Freight continued to be the biggest contributor to railway revenue. Freight earnings increased 1.3% to Rs 1.73 lakh crore in FY26 from Rs 1.71 lakh crore a year earlier.

The railway network also handled a larger volume of goods during the year. Freight traffic rose to 1,670 million tonnes in FY26 from 1,617 million tonnes in FY25. This keeps Indian Railways among the world’s largest freight carriers.

The government is now looking to increase the share of railways in India’s freight movement. Plans include improving railway capacity, removing bottlenecks, increasing train speeds and reducing the time and cost involved in transporting goods.

Infrastructure spending is another major part of this push. The railway budget allocation has increased substantially over the years and stands at Rs 2.78 lakh crore for FY27.

As of April 1, 2026, Indian Railways had 514 sanctioned infrastructure projects covering around 40,000 kilometres, with an estimated cost of Rs 8.31 lakh crore. These include new railway lines, gauge conversion and track-doubling projects.

The government has also announced plans for a new Dedicated Freight Corridor between Dankuni in West Bengal and Surat in Gujarat. Such projects are expected to improve freight movement and help railways compete more effectively with road transport.

The record revenue shows the growing economic importance of India’s railway network. With continued investment in infrastructure and a focus on freight expansion, Indian Railways could see further growth in revenue as the country’s transport and logistics requirements increase.

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