Fading sheen? Why Indian Railways' finances are already raising alarm

Key points

• On February 1, Union finance minister Nirmala Sitharaman presented a railway budget for 2026-27 that exuded confidence—revenue pegged at Rs 3.02 lakh crore, freight earnings projected to grow by 5.8 per cent, an improved operating ratio of 98.4 per cent, and a record capital outlay of Rs 2.93 lakh crore.
• Just months on, that story is beginning to show cracks.
• The tone of a May 15 railway ministry letter to all zonal railways—reviewed by INDIA TODAY—could not be more different.
• Instead of growth targets, it talks about “stagnant revenue”, a “matter of concern”, and the urgent need to not exceed spending limits.
• The red flags have been cited barely into the first quarter of the new fiscal year.