Bengaluru metro revenue soars, losses persist despite turnaround

Operating income of Namma Metro touched a record ₹814.29 crore in 2024-25, showing strong recovery in ridership and collections, but high debt, depreciation and rising costs continue to keep the system in the red.

Bengaluru Metro has posted a sharp rebound in its financial performance in 2024-25, recording its highest-ever operating revenue even as long-term financial pressures continue to weigh on the system. Operating income rose to ₹814.29 crore, marking a 26 per cent jump from ₹644.32 crore in 2023–24 and nearly 71 per cent higher than ₹475.2 crore in 2022-23.

The improvement reflects a sustained rise in passenger ridership, better fare collections and a gradual revival of commercial activity at metro stations following pandemic-related disruptions. The revenue surge also strengthened operational performance during the year.

Operating expenditure increased to ₹706.3 crore, up 15 per cent from the previous year. Despite the higher spending, the metro recorded an operating surplus of ₹107.99 crore, a major improvement compared to the ₹31.25 crore surplus reported in 2023–24. The gain highlights tighter cost control and better utilisation of services.

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However, legislative data shows that Bengaluru Metro continues to face deep structural financial stress. Interest payments climbed to ₹140.61 crore in 2024–25, compared to ₹128.48 crore in the previous year, while depreciation costs remained high at ₹576.79 crore. Together, these non-operational expenses pushed the system into a net loss of ₹609.41 crore after depreciation, despite operational gains.

A longer-term view shows consistent revenue growth over the past decade. Income increased from ₹337.21 crore in 2017-18 to ₹814.29 crore in 2024–25, driven by network expansion, fare revisions and rising dependence on mass transit in the city. Even so, overall profitability remains elusive. Net losses stood at ₹627.92 crore in 2023–24 and ₹525.65 crore in 2022–23, underlining the gap between operating performance and financial sustainability.

Operating costs have also risen sharply, jumping 168 per cent over seven years, from ₹263.29 crore in 2017–18 to ₹706.3 crore in 2024–25. Key pressure points include maintenance of ageing infrastructure, electricity consumption, staff expenses and station operations. Finance costs remain elevated due to long-term debt taken on for network expansion and capital investment.

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While revenue momentum is encouraging, the financial model remains under strain. High depreciation and interest burdens continue to outweigh operating gains, pointing to the need for fare rationalisation, stronger non-fare revenue streams and targeted government support. Balancing rapid network expansion with long-term financial viability remains one of the biggest challenges for Bengaluru’s mass transit system.