Rising ridership and fares lift collections sharply, yet heavy interest, depreciation and expenses continue to undermine the city’s metro finances
BENGALURU
Namma Metro has recorded a sharp rebound in its financial performance during 2024–25, with operating revenue rising to Rs 814.29 crore, a 26 per cent increase over Rs 644.32 crore in 2023–24 and nearly 71 per cent higher than Rs 475.2 crore in 2022–23. The recovery underscores a sustained rise in passenger ridership, improved fare collections and the gradual revival of commercial activity at metro stations after pandemic-related disruptions.
The revenue surge translated into stronger operational performance. Although operating expenditure climbed to Rs 706.3 crore, up 15 per cent from the previous year, the system posted an operational surplus of Rs 107.99 crore. This marks a significant improvement compared with the Rs 31.25 crore surplus recorded in 2023–24, reflecting tighter cost management and better utilisation of services.
However, data presented in the legislature highlights that Bengaluru Metro continues to face structural financial pressures. Interest payments rose to `140.61 crore during the year, compared with `128.48 crore in 2023–24, while depreciation expenses stood at a substantial `576.79 crore. Together, these non-operational costs pushed the system into a net loss of `609.41 crore after depreciation, despite gains at the operating level.
Transport analysts note that while revenue momentum is encouraging, the financial model remains strained. High depreciation and interest burdens continue to outweigh operating gains, pointing to the need for fare rationalisation, enhanced non-fare revenue streams or targeted government support.
Metro officials acknowledge the challenge, stating that while daily ridership and income are improving, the system highlights the complexity of running large-scale urban transit in a rapidly expanding, high-cost metropolitan environment. Balancing expansion with long-term financial viability remains a critical policy challenge for Bengaluru’s mass transit system.
