Railways Earn ₹14,571 Crore Freight Revenue in February
Indian Railways recorded freight revenue of ₹14,571 crore in February 2026, reflecting steady growth in cargo movement despite global economic uncertainties. Freight loading increased nearly 4 percent year-on-year, highlighting the resilience of India’s domestic logistics and industrial ecosystem.
The growth comes at a time when global markets are facing disruptions from geopolitical tensions, including the ongoing US-Israel-Iran conflict that has pushed oil prices higher. Even amid such external pressures, India’s railway freight network continues to function as a critical backbone for bulk commodity movement and industrial supply chains.
Freight Volume and Network Utilisation Rise
In February, Indian Railways transported 137.72 million tonnes (MT) of freight, up 3.96 percent from 132.48 MT in the same month last year. Another key efficiency indicator—net tonne-kilometres (NTKM)—rose 4.18 percent to 76,007 million from 72,955 million, showing improved utilisation of the railway network.
The cumulative performance also remained strong. Between April 2025 and February 2026, freight loading reached 1,503.80 MT, registering a 3.28 percent increase over the previous year. During the same period, freight earnings stood at ₹1,60,987 crore, reflecting a modest revenue rise of 1.54 percent.
These figures underline the steady demand for rail-based logistics in core sectors such as power generation, steel manufacturing, fertilizers, cement, and export-import trade.
Commodity Segments Driving Growth
Several key commodities contributed significantly to February’s freight performance. Raw materials for steel plants—excluding iron ore—surged by 46.9 percent to 0.141 MT from 0.096 MT a year earlier, reflecting strong demand from India’s expanding steel industry.
Fertilizer transport rose 10.2 percent to 0.184 MT, supporting the ongoing rabi crop season. Monthly fertilizer loading reached 5.396 MT, marking a sharp 27.7 percent increase. Mineral oil shipments climbed 17.8 percent to 0.172 MT, while container EXIM traffic rose to 0.251 MT from 0.213 MT, indicating a gradual revival in trade flows.
Iron ore loading remained another strong driver, rising 9.7 percent monthly to 16.370 MT and 27.6 percent in daily averages. Pig iron and finished steel shipments grew 20.8 percent, while clinker movement increased 20.1 percent to 6.508 MT.
Why Coal and Iron Ore Freight Is Growing
Coal continues to dominate the railway freight basket, accounting for nearly half of total cargo volumes. The sustained demand comes primarily from India’s power sector, where thermal plants still supply a large share of electricity despite ongoing energy transition efforts.
Seasonal winter demand for electricity and reliable rail connectivity for bulk coal transport have supported strong movement to power plants across the country. Railways remain the most economical mode for long-distance coal logistics, further reinforcing this growth.
Iron ore movement has surged due to the boom in domestic steel production. Large infrastructure investments—estimated at about ₹11 lakh crore annually—are driving higher steel demand for roads, railways, housing, and industrial projects. This has increased the movement of iron ore from mining regions such as Odisha and Chhattisgarh to steel plants through upgraded freight corridors.
Infrastructure and Efficiency Gains
Infrastructure improvements have played a crucial role in sustaining freight growth. Dedicated Freight Corridors (DFCs), with nearly 3,400 km already operational, are increasing network capacity and reducing transit times.
Upgraded terminals, digital freight management systems, and near-complete electrification of broad gauge routes are also enhancing operational efficiency. These measures help lower logistics costs, which currently account for about 13–14 percent of India’s GDP.
Despite volume growth, revenue gains have been slightly slower due to moderated freight rates and incentive-based pricing strategies aimed at attracting bulk cargo.
Rail Freight as an Economic Stabiliser
Indian Railways’ February freight performance highlights its strategic importance in sustaining industrial growth and supply chain stability. Rising coal and iron ore movement reflects strong activity in the power and steel sectors—two pillars of India’s infrastructure expansion.
At a time when global tensions threaten energy markets and trade flows, a robust rail freight network helps cushion the economy from external shocks. If current trends continue, freight revenue could exceed ₹1.75 lakh crore in FY2026, strengthening Railways’ ability to invest in modernization and capacity expansion.
Ultimately, expanding rail’s freight share from 27 percent toward the 45 percent target by 2030 will be critical for lowering logistics costs, improving competitiveness, and supporting India’s journey toward a high-growth, resilient economy.
(With agency inputs)
