KOCHI: Kochi Metro Rail Ltd (KMRL) reduced its net loss by around 18 per cent to Rs352.49 crore during FY26 from Rs430.57 crore in the previous year, reflecting improved ridership, higher fare collections and increased government support, even as the urban rail operator continued to grapple with a heavy debt burden.
The FY26 financial details, which are yet to be released through the company's annual report, indicate that the metro remained structurally loss-making as finance costs continued to outstrip its operating earnings.
The company's EBITDA improved sharply to Rs172.77 crore in FY26 from Rs103 crore a year earlier, aided by a 7.12 per cent increase in fare-box revenue and a sharp rise in grants and reimbursements from the Kerala Government to meet operational requirements.
Interest expenses
However, interest expenses remained a major drag on profitability. KMRL incurred finance costs of Rs334.57 crore during FY26, almost double its EBITDA, underscoring the continuing burden of debt raised for metro expansion.
Passenger traffic continued to improve, with annual ridership increasing to 37.02 million from 35.59 million in FY25, helping fare-box revenue rise to Rs119.84 crore, up 7.12 per cent year-on-year.
The Kerala Government substantially stepped up financial support during the year, providing Rs1,153.56 crore in grants and subordinated debt, compared with Rs320.22 crore in FY25. Of this, Rs702 crore was provided for the closure of consortium bank loans. The Central Government also extended Rs55.2 crore during FY26.
Phase II corridor
KMRL's leverage also improved, with net debt-to-EBITDA declining to 24.57 times from 42.93 times a year earlier, although it remains elevated for a public transport utility.
The company is continuing work on the 11.2-km Phase II corridor connecting JLN Stadium and Infopark through Kakkanad. The project, estimated to cost Rs1,957 crore, is now scheduled for completion in FY28 after delays in land acquisition and technical issues. Physical progress had reached 30.85 per cent, while financial progress stood at 32.80 per cent as of end-March 2026.
