Indian Railways Reports 2% Increase in Freight Volumes for Q1
Indian Railways has reported a modest increase in freight traffic for the April to June quarter of FY26, with notable growth in sectors such as pig iron, finished steel, food grains, and container movement. However, this positive trend was somewhat offset by a decline in coal, cement, and fertilizer loading during the same period. Overall, total freight volumes rose by 2% year-on-year to 413 million tonnes, while revenue from freight operations also saw a 2% increase, reaching Rs 44,870.4 crore.
Freight Volume and Revenue Trends
In the first quarter of FY26, Indian Railways transported a total of 413 million tonnes of freight, marking a 2% increase compared to the previous year. This growth was primarily driven by strong performances in specific sectors, including pig iron and finished steel. Revenue from freight operations mirrored this growth, also rising by 2% to Rs 44,870.4 crore. Coal, which constitutes over half of the freight basket, remained the dominant commodity, with 209.1 million tonnes transported, reflecting a slight increase of 1.7 million tonnes from the same quarter last year. However, the month of June saw a dip in coal movement, attributed to seasonal and logistical challenges.
Coal Movement and Seasonal Factors
In June, coal loading experienced a decline, with total freight volume for the month increasing by only 1% to 136.7 million tonnes. Revenue from freight operations during this month fell by 0.3% to Rs 14,749.8 crore, primarily due to a 2% drop in coal loading, which stood at 67.8 million tonnes. Officials noted that early monsoon rains and sufficient coal stock at thermal power stations reduced the urgency for new deliveries. The Ministry of Railways reported that coal reserves at Indian power plants reached a record high of 61.3 million tonnes, enough to sustain consumption for 25 days. This surplus stockpile is reportedly larger than Canada’s total annual coal production, highlighting the impact of improved logistics infrastructure, particularly through the adoption of silo-based mechanized coal loading.
Impact on Non-Coal Freight and Future Outlook
The easing demand for coal has led to an increase in the availability of wagons for non-coal freight, facilitating more efficient movement of other commodities such as steel and food grains. The steady movement of containers and pig iron indicates resilience in both industrial supply chains and agricultural distribution. While the overall figures suggest stability in railway freight operations, the contrasting trends across different sectors point to the necessity for dynamic planning. The rise in coal inventories may provide short-term logistical relief, but the decline in cement and fertilizer demand raises concerns about potential challenges in the construction and agriculture sectors.
Looking ahead, Indian Railways is expected to focus on optimizing wagon allocation and exploring new freight opportunities, particularly in sectors demonstrating consistent growth. The performance in the first quarter presents a mixed yet encouraging outlook for the remainder of the fiscal year, as the organization adapts to changing market conditions.
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