KOCHI: On August 7, Kochi Metro Rail Ltd (KMRL) – Kochi Metro, put out a press release claiming an operating profit of Rs 33.34 crore for FY25 – its third straight year of what it described as a ‘surplus’.
But behind that upbeat messaging, the company, much like last year, ended the year with a large net loss of Rs430.57 crore, according to a credit rating agency report. It’s a figure not mentioned in the press release – nor confirmed by any official filing – because, two months since the announcement, Kocho Metro annual report for FY25 is still nowhere to be found on its website.
When businessbenchmark,news checked with Loknath Behera, the managing director of Kochi Metro, on how the FY25 annual report can be accessed, he said, “I will check why the FY25 report has not yet been posted.”
Profitable in operation, but not overall
The numbers shared by Kochi Metro painted a narrative of improving performance: total revenue rose to Rs182.37 crore in FY25, with Rs111.88 crore from ticket sales and Rs55.41 crore from non-fare sources like station rentals and advertisements.
Expenses for day-to-day operations were reported at Rs149.03 crore, resulting in an operating profit of Rs33.34 crore – around Rs10 crore higher than the previous year.
KMRL officials framed this as evidence of financial resilience and operational efficiency, citing consistent ridership growth, improved services, and better revenue diversification. “This consistent financial progress reflects the resilience and efficiency of Kochi Metro,” Managing Director Loknath Behera was quoted saying in the release.
But that’s only one part of the story.
Weight of borrowing costs
What the announcement didn’t touch was the cost of capital – particularly the interest expenses and depreciation that weigh heavily on the metro operator’s finances. A rating agency report by India Ratings & Research (Ind-Ra) revealed that after these costs, the company posted a net loss of Rs430.57 crore in FY25, only marginally lower than the Rs432.95 crore loss in FY24.
This isn’t a new pattern. In FY24, Kochi Metro had also posted an operating surplus of Rs22.94 crore but still ended up with a net loss of Rs433.49 crore, as finance costs alone stood at Rs294.22 crore and depreciation added another Rs179.54 crore. While FY25’s exact breakup is not yet available, it is clear that debt servicing and capital charges continue to be the main reasons why the company remains deep in the red, year after year.
Is “surplus” the right word?
To be fair, claiming an operating profit or even calling it a surplus is not necessarily misleading – if the company is transparent about what’s included and what’s left out. Many public infrastructure companies operate with long-term losses while covering operational expenses.
The issue arises when the language in public communication presents a partial view as the whole picture – particularly when the full financials are kept out of sight.
In this case, Kochi Metro’s release did clarify that the surplus referred to operating profit – before finance and infrastructure costs – but stopped short of providing net figures or clarifying that overall losses had continued. With no annual report available for FY25, there’s little else the public or media can use to verify the full financial health of the company.
Public entity, public expectation
Kochi Metro is a 50:50 joint venture between the Government of India and the Government of Kerala. It plays a strategic role in urban transportation, and much of its funding – including equity and subordinated debt – continues to come from its public-sector sponsors.
According to Ind-Ra, KMRL’s interest coverage ratio (a measure of how easily it can pay interest) remained below 1x in FY24 and FY25, a clear sign of financial strain. The Government of Kerala provided Rs320.2 crore in FY25 in the form of grants and subordinated debt to support operations and service debt.
Despite this, the lack of complete disclosure raises questions. When public funds are involved – and public trust at stake – selective storytelling can leave a misleading impression. As one senior chartered accountant based in Thrissur put it, “Highlighting operating profit while hiding a Rs400-crore net loss isn’t technically false, but it leaves out the part that matters most to financial integrity.”
Waiting for the full picture
For now, Kochi Metro’s FY25 annual report remains unpublished. And with the spotlight fixed on operating performance, the wider story – about ongoing losses, dependence on government funding, and mounting debt – risks going unnoticed.
Unless the company opens its books soon, the public will be left with a headline about surplus and no easy way to learn what lies behind it.
