Indian Railways is expected to project its operating ratio below 98% in 2026-27—first time in five years—driven by higher freight earnings and increased central funds, two persons close to the matter said.

After improving to 97.45% in 2020-21, Indian Railways’ operating ratio remained elevated at 107.39% in 2021-22, 98.14% in 2022-23, 98.43% in 2023-24, 98.32% (revised estimate) for 2024-25, and 98.43% (budget estimate) for 2025-26.

Revenue boost

While Railways' pension liability has kept the operating ratio at above 98% for the last few years, the national transporter's fast return to normalcy post covid and a pickup in both freight and passenger revenues may give it enough room to show a further increase in internal revenue generation in 2026-27, thereby pushing down the operating rat

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