First-ever profit after interest for Bengaluru metro

For the first time since it began operations in 2011, the Bengaluru metro has achieved profit after interest.

In 2022-23, Bangalore Metro Rail Corporation Limited (BMRCL) earned Rs 594.02 crore while its operating expenses stood at Rs 486.61 crore. The scales were tilted by a robust non-fare revenue of Rs 171.41 crore, data reviewed by DH shows.

The trend has continued into the new financial year with the BMRCL earning Rs 190.67 cr from April through July while spending Rs 186.92 crore on train operations in
those four months.

The financial numbers are in line with the metro’s average daily ridership, which has risen from 5.32 lakh to 6.11 lakh between January and July. 

The BMRCL hopes to do better this year. It’s just weeks away from opening two small stretches that will make the Purple Line fully operational with a length of 43 km. 

A senior BMRCL official said it was Namma Metro’s first-ever annual profit after interest or before depreciation, and showed strong recovery after Covid-induced losses. 

Pre-depreciation profit shows a company’s ability to service debt. 

“We have had an operating profit since day 1. We were able to pay salaries, and energy and maintenance costs. But Covid put paid to that as our ridership plummeted,” the official told DH on the condition of anonymity. 

With the metro network expected to reach 175 km by 2026, the BMRCL hopes to cover a part of depreciation costs in the next three years, according to the official. “Our target is to have a 317-km network by 2031 and be financially self-sufficient in the next 10 years,” the official added.

By December, the BMRCL hopes to open the crucial 19-km Yellow Line, which will provide metro connectivity to the tech hub of Electronics City. The official exuded confidence that there wouldn’t be any fund shortage. “If there’s any shortfall, we’ll approach the government for supplementary financial support. But it will depend on how much we spend,” the official said and underscored the need to open lines as early as possible. 

No fare hike 

Namma Metro has never increased its fare and will keep it that way until at least this financial year, a well-placed source said.

State budget for metro

Rs 65 cr: To recover cash losses in 2023-24. The BMRCL will receive this from the state government 

Rs 300 cr: Reimbursement of the state GST. Currently, metro contractors deduct 18% GST (9% state GST and 9% central GST). The BMRCL claims reimbursement for the SGST 

Rs 1,756 cr: Loans from the state in the form of its share in 9% CGST and land cost. BMRCL has to repay this after full payment of external debt 

Rs 500 cr: Support from the state to BMRCL to repay debt from external agencies 

Rs 210 cr: State's equity investment

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