New Delhi, Nov. 4 -- Indian Railways is expected to project its operating ratio below 98% in 2026-27-first time in five years-driven by higher freight earnings and increased central funds, two persons close to the matter said.

After improving to 97.45% in 2020-21, Indian Railways' operating ratio remained elevated at 107.39% in 2021-22, 98.14% in 2022-23, 98.43% in 2023-24, 98.32% (revised estimate) for 2024-25, and 98.43% (budget estimate) for 2025-26.

The operating ratio measures an organization's operational efficiency by comparing its working expenses, such as fuel, salaries, and maintenance costs, to its traffic earnings. The ratio indicates the amount spent to earn every Rs.100. A higher ratio indicates a weaker ability to generat...