Bengaluru Metro hits Rs 1,000 cr revenue milestone, yet net loss swells to Rs 624 cr

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The Bangalore Metro Rail Corporation Ltd (BMRCL) has crossed a significant financial milestone, with its annual report revealing total revenues exceeding Rs 1,000 crore for the first time in the 2024-25 fiscal year. However, this operational success is shadowed by a deepening net loss, which has widened to Rs 623.93 crore.

According to the corporation’s annual report, total revenue surged to Rs 1,191 crore, up from Rs 990.2 crore in 2023-24. The primary driver was a substantial increase in farebox revenue, which rose to Rs 753.6 crore from Rs 573.9 crore the previous year.

The BMRCL attributed this growth to recovering ridership, network expansion and a controversial fare hike implemented on February 9. The hike, which saw prices rise by up to 71%, was strongly opposed by commuters and elected representatives but has proven critical to the operator’s bottom line.

“The corporation was able to meet its finance costs for the past two fiscals entirely through operating surplus without relying on support from the state government — a matter of great relief,” the report stated. This operational strength is further underscored by a record Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Rs 484.7 crore, one of its strongest performances since inception.

Daily passenger traffic averaged 7.58 lakh in 2024-25. The report also highlighted a significant shift towards digital payments, with QR code-based tickets accounting for between 20.34% and 23.23% of all journeys. Approximately half of all passengers continued to use smart cards.

Despite the record operational income, the BMRCL’s net loss after tax expanded sharply from Rs 350.7 crore in 2023-24 to Rs 623.9 crore. The corporation posted an operational profit of Rs 229.4 crore, but this was offset by a sharp increase in non-operational costs, including depreciation and finance charges. Operating expenditure, excluding these factors, also rose to Rs 706.3 crore from Rs 613.8 crore.

The financial strain is partly due to the heavy debt burden from ongoing projects. The BMRCL has borrowed a total of Rs 17,071 crore, in addition to state and central government grants.

The annual report provided updated timelines for Bengaluru’s sprawling metro expansion. The crucial Reach 6 corridor (Kalena Agrahara to Nagawara) is now scheduled to be commissioned in two stages during the 2026-27 financial year. The BMRCL said tunnelling works are complete and the project is in an "advanced stage."

Regarding the highly anticipated airport line, the Phase 2-A and 2-B project connecting Central Silk Board Junction to Kempegowda International Airport (58 km with 30 stations) will open in stages in the coming years, though no precise timeline was given.

However, the report noted delays in the newer Phase III, known as the Orange Line. While its foundation stone was laid in August 2024, only preliminary work like land acquisition and soil investigation is underway. Tenders for work approved last November are yet to be floated. In the last fiscal year, the only new section inaugurated was the 3.15-km extension from Nagasandra to Madavara.