Indian Railways’ freight performance: Volumes up 2% in Q1; revenue flat as coal movement softens

Indian Railways recorded a modest rise in freight traffic during the April–June quarter of FY26, with double-digit growth seen in key sectors like pig iron, finished steel, food grains, and container movement. However, this growth was tempered by a slowdown in coal, cement, and fertiliser loading during the same period, according to officials cited by ET.Total freight volumes rose 2 per cent year-on-year to 413 million tonnes (mt) in the first quarter, while revenue from freight operations also increased 2 per cent to Rs 44,870.4 crore. Coal, which makes up over half of Indian Railways’ freight basket, continued to dominate but grew marginally. Railways transported 209.1 mt of coal, a rise of 1.7 mt compared to the same quarter last year.However, in June alone, coal movement slipped due to seasonal and logistical factors. Total freight volume for the month edged up 1 per cent to 136.7 mt, but revenue dropped 0.3 per cent to Rs 14,749.8 crore. The dip in revenue was mainly due to a 2 per cent decline in coal loading, which stood at 67.8 mt. Officials attributed the fall to early monsoon showers and sufficient coal stock at thermal power stations, reducing the urgency for fresh deliveries.In fact, the ministry of railways highlighted in a recent statement that coal reserves at Indian power plants reached a record high of 61.3 mt—enough to meet 25 days of consumption. “The stockpile is now even higher than Canada’s total annual coal production,” a senior railway official was quoted as saying by ET. This increase in availability was made possible by enhanced logistics infrastructure, particularly the adoption of silo-based mechanised coal loading.With coal demand easing temporarily, the availability of wagons for non-coal freight increased during the quarter. This shift allowed other commodities like steel and food grains to move more efficiently through the network. The steady container and pig iron movement also signals resilience in industrial supply chains and agricultural distribution.While the overall figures reflect stability in railway freight operations, the contrasting trends across sectors reflect the need for dynamic planning. Rising coal inventories may offer short-term logistical breathing room, but softer cement and fertiliser demand could point to underlying challenges in the construction and agriculture sectors.Looking ahead, Indian Railways is likely to focus on optimising wagon allocation and tapping new freight opportunities, particularly in sectors showing consistent growth. The Q1 performance offers a mixed but encouraging signal for the rest of the fiscal year.