No increase in fares up to 215 km in ordinary class, rates increased for non-AC and AC classes in Mail and Express trains. Here's the full details of changes.
Indian Railways has rationalised passenger train fares once again this year, with effect from 26 December 2025, increasing the rates for non-AC and AC classes in Mail and Express trains.
Indian Railways had previously rationalised passenger train fares, earlier this year on 1st July 2025, with a small increase in fares per kilometre travelled. And now, with effect from 26th December 2025, it is once again similarly increasing the rates for non-AC and AC classes in Mail and Express trains by a nominal amount, to bear the increasing cost of operations.
As before, there is no change in fares in Suburban trains and for Monthly Season Tickets for both suburban and non-suburban routes. Below are details of the change in fares in all types of trains, as per a report by PIB Railways.
- No increase in fares for Suburban and Monthly Season Tickets.
- In Ordinary Class: For travel up to 215 kilometres, no increase in fares.
- In Ordinary Class: For travel above 215 kilometres, 1 Paise per kilometre increase in fares.
- For Non-AC class in Mail or Express Trains: 2 Paise per kilometre increase in fares.
- For AC Classes: 2 Paise per kilometre increase in fares.
This means that for a 500 kilometres journey in non-AC coaches, you'll have to pay only 10 Rupees extra.
As Indian Railways has expanded its network and operations significantly over the last decade, it has also increased its manpower, along with several improvements in safety aspects, better facilities and modernisation in coaches, train services, and railway stations.
To meet the higher costs due to increase in manpower as well as these operational costs, and to keep subsidising the passenger fares as before, they're focusing more on freight or cargo and increasing the passenger fares by only a small amount.
India is now the second-largest cargo carrying railway in the world. Indian Railways uses the profits from freight or cargo to offset the losses in subsidising the passenger fares.
As per a report by the Ministry of Railways earlier this year on April 2025, Indian Railways provides train tickets with subsidised prices, with an average concession of 46% to every person travelling on its trains. That is, if the cost of providing service is Rs. 100, then the price of ticket is Rs. 54 only.
This subsidy continues for all passengers. Also, concessions beyond this subsidy amount are continuing for many categories of train travellers such as: 4 categories of Persons with disabilities (Divyangjans), 11 categories of patients and 8 categories of students.
Despite the heavy subsidies on passenger fares, it still gained a Net Profit of ₹3,260 Crore during 2023-24. While it provides large concessions on passenger fares, it earns through its freight or goods transportation services. It aims to earn about 600 crore rupees this year, as a result of this recent rationalisation in fare structure.
This way, Indian Railways successfully provides affordable services to the masses as well as continues to increasingly provide new advanced modern train services such as Vande Bharat, Amrit Bharat, Namo Bharat, as well as better LHB coaches in other trains.
- Indian Railways Achieves ₹2.56 Lakh Crore Revenue in 2023-24 with Net Profit of ₹3,260 Crore Amid Major Investments in Staff, Pension, and Energy - Ministry of Railways, on PIB - Press Information Bureau. Posted On: 02 APR 2025 7:39PM by PIB Delhi