Rail Operators Likely To Post Double-Digit Growth In FY25: Ind-Ra
RAILWAYS & METRO RAIL

Rail Operators Likely To Post Double-Digit Growth In FY25: Ind-Ra

Rail operators' revenue is expected to grow into double-digit, while warehousing sector is projected to log a 3-5 per cent year-on-year growth in organic rentals this fiscal even as the demand for Grade-A space may remain intact, ratings agency India Ratings said on Friday. For sea transport, the ratings agency said, it is expecting port volumes will be supported by the coastal movement of goods and global container freight, with the easing of geopolitical tensions, including the Red Sea crisis and the normalisation of US-bound traffic. 
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for container freight stations is expected to remain range-bound due to the increase in the proportion of direct port delivery and high competition intensity at large ports, according to Ind-Ra (India Ratings). Ind-Ra has also assigned an improving outlook for the logistics industry for FY26 and said that macro-tailwinds arising from the government's multipolar investments across ports, rail, road, and air transport are expected to bode well for the industry. 
Sustained investments and the resultant increased scale of operations are expected to improve cost efficiency and operational flexibility which could lead to higher profitability for Ind-Ra-rated integrated logistics companies, said Pratik Mundhada, Associate Director, Corporates, Ind-Ra. 
"In Ind-Ra's base case, we see double-digit revenue growth for rail operators in FY26, supported by huge private investments in rakes and dry terminals in 2024. For warehousing entities, we project organic rental growth of 3 -5 per cent year-on-year while demand for Grade-A spaces is expected to remain intact in FY26," he stated. 
Container freight stations' profitability, according to Mundhada, is likely to remain subdued in this fiscal due to intense competition. 
"Lastly, for freight forwarders, revenue growth and EBITDA are likely to be impacted by a moderation in the global freight rates," he added. 
The ratings agency noted that initiatives such as the National Logistics Policy and the PM Gati Shakti National Master Plan aim to enhance multimodal connectivity and foster interdisciplinary coordination. 
Further, it stated that public-private partnerships are expected to expected to scale-up the ports portfolio. 
Also, increased private capital expenditure towards the network expansion of trains, dry terminals, and warehousing will support the growth of the logistics market in India, it said and added that India's Logistics Performance Index ranking improved to 38 in 2023 from 44 in 2018, with an aspiration to break into the top 25 by 2030 as part of Maritime Vision 2030.   

Rail operators' revenue is expected to grow into double-digit, while warehousing sector is projected to log a 3-5 per cent year-on-year growth in organic rentals this fiscal even as the demand for Grade-A space may remain intact, ratings agency India Ratings said on Friday. For sea transport, the ratings agency said, it is expecting port volumes will be supported by the coastal movement of goods and global container freight, with the easing of geopolitical tensions, including the Red Sea crisis and the normalisation of US-bound traffic. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for container freight stations is expected to remain range-bound due to the increase in the proportion of direct port delivery and high competition intensity at large ports, according to Ind-Ra (India Ratings). Ind-Ra has also assigned an improving outlook for the logistics industry for FY26 and said that macro-tailwinds arising from the government's multipolar investments across ports, rail, road, and air transport are expected to bode well for the industry. Sustained investments and the resultant increased scale of operations are expected to improve cost efficiency and operational flexibility which could lead to higher profitability for Ind-Ra-rated integrated logistics companies, said Pratik Mundhada, Associate Director, Corporates, Ind-Ra. In Ind-Ra's base case, we see double-digit revenue growth for rail operators in FY26, supported by huge private investments in rakes and dry terminals in 2024. For warehousing entities, we project organic rental growth of 3 -5 per cent year-on-year while demand for Grade-A spaces is expected to remain intact in FY26, he stated. Container freight stations' profitability, according to Mundhada, is likely to remain subdued in this fiscal due to intense competition. Lastly, for freight forwarders, revenue growth and EBITDA are likely to be impacted by a moderation in the global freight rates, he added. The ratings agency noted that initiatives such as the National Logistics Policy and the PM Gati Shakti National Master Plan aim to enhance multimodal connectivity and foster interdisciplinary coordination. Further, it stated that public-private partnerships are expected to expected to scale-up the ports portfolio. Also, increased private capital expenditure towards the network expansion of trains, dry terminals, and warehousing will support the growth of the logistics market in India, it said and added that India's Logistics Performance Index ranking improved to 38 in 2023 from 44 in 2018, with an aspiration to break into the top 25 by 2030 as part of Maritime Vision 2030.   

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement