The initiative to expand the Vande Bharat train network is driven by a solid business rationale, highlighted by the profitability in specific premium passenger categories within Indian Railways. Both AC 3-tier and AC Chair Car services reported profits in the financial year 2025, showing a marked contrast to the losses experienced in other categories. AC 3-tier made a profit of Rs 3,645.44 crore, compared to Rs 2,501.07 crore the previous year, whereas AC Chair Car moved from making losses to achieving a profit of Rs 376.77 crore.

This financial success is particularly relevant to the Vande Bharat trains, as Chair Car services are a key feature of these premium offerings. The positive results from these segments speak to a potential market that is increasingly willing to invest in enhanced rail travel experiences. The expanding network form of Vande Bharat seems set to cater to this demand.

Overall, financial indications suggest that while many of Indian Railways’ passenger segments are struggling, there is considerable room for growth in premium services, supported by a clientele willing to pay for faster and more comfortable travel.

Rise in Passenger Demand

The popularity of Vande Bharat trains has surged notably over the past year. In the financial year 2026, the network migrated from an estimated 2.97 crore passengers to approximately 3.98 crore, reflecting a significant 34 per cent increase. Since the launch of the inaugural Vande Bharat service in 2019, over 9.1 crore passengers have travelled on these trains, essential to the broader railway network.

The route connecting New Delhi to Varanasi has emerged as one of the busiest segments, transporting more than 73 lakh passengers since its inception. This sustained increase in demand reinforces the potential for further development within the premium travel segment as Indian Railways assesses future expansion plans.

The rising passenger numbers not only highlight the efficacy of the Vande Bharat service but also underline the need for Indian Railways to consider additional services in line with consumer preferences for comfort, speed, and convenience.

Introduction of Sleeper Services

The launch of Vande Bharat Sleeper trains in January 2026 marks a significant evolution in the railways’ strategy, expanding beyond daytime Chair Car services to cater to long-distance overnight travel. In just three months, this service attracted 1.21 lakh passengers across 119 trips, achieving an occupancy rate exceeding 100 per cent.

This remarkable uptake indicates a clear market demand for premium overnight trains. The success of Vande Bharat sleeper services aligns them closely with the profitable AC 3-tier category, further bolstering the strategic direction of Indian Railways in the premium segment.

The introduction of sleeper trains provides an opportunity for Indian Railways to explore a lucrative sector within the broader travel market, capitalising on the existing trends of profitability in railway travel. This approach could lead to a more sustainable economic model for passenger services.

Strategic Focus on Premium Services

The intent behind expanding the Vande Bharat network aligns with the broader business strategy of Indian Railways, which seeks to accommodate various passenger demographics while recognising a profitable segment willing to pay more for enhanced service. Currently, 162 Vande Bharat services operate across the country.

Amidst the growing passenger traffic and successful introduction of sleeper trains, premium rail travel is becoming increasingly integral to the expansion plans of the railways. The overarching goal is not just the increase in the number of trains but to ensure that premium services contribute significantly to the financial health of Indian Railways.

This commitment to a market-oriented approach to premium rail travel underscores the potential for Indian Railways to develop a revenue stream that can help alleviate the financial burdens of other less profitable passenger categories, creating a more balanced and effective transportation network for the country.

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