India's indigenously built Vande Bharat Express network is rapidly emerging as a financial powerhouse for Indian Railways. Since its launch in 2019, the semi-high-speed train service has transported over 9.1 crore passengers across 1 lakh completed journeys by March 2026, demonstrating a compelling economic case for its continued nationwide expansion.
Profitability Drives Expansion Strategy
While many passenger categories within Indian Railways incur significant losses, the Vande Bharat network's premium segments stand out as consistent profit generators. Data from FY25 reveals that only two categories were profitable: AC 3-tier and AC Chair Car. The AC 3-tier segment alone generated a substantial Rs 3,645.44 crore in profits in FY25, building on strong performance in FY23 and FY24. The AC Chair Car also rebounded successfully, recording a Rs 376.77 crore profit in FY25 after losses in previous years.
In stark contrast, other classes faced considerable losses, with Ordinary class experiencing a steep Rs 20,705.94 crore deficit and First Class losing Rs 48.77 crore during the same period. This clear financial distinction underscores why Indian Railways is aggressively deploying more Vande Bharat services, with 162 currently operational across the country.
Soaring Demand and Future Growth
The robust profitability is directly linked to an escalating demand for premium rail travel. Patronage across the Vande Bharat network surged in FY26, carrying approximately 3.98 crore passengers, a remarkable 34% year-on-year increase from 2.97 crore passengers in FY25. The New Delhi-Varanasi corridor remains the busiest route, having served over 73 lakh passengers to date.
Further demonstrating this demand, Indian Railways introduced the Vande Bharat Sleeper service in January 2026. Within just three months, this new offering transported 1.21 lakh passengers on 119 trips, maintaining an occupancy rate exceeding 100%. This success highlights growing consumer confidence in premium overnight rail travel and paves the way for further innovation in long-distance connectivity.