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[BUSINESS] · India · 3 sources

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Indian Railways expands Vande Bharat network with new sleeper trains

Indian Railways is expanding its premium passenger strategy through the Vande Bharat network, which saw ridership grow by 34% in FY26 to approximately 3.98 crore passengers. This growth is driven by high demand in profitable AC categories. While many passenger classes reported losses in FY25, AC 3-tier and AC Chair Car segments remained profitable, with AC 3-tier generating Rs 3,645.44 crore in profit.

To capitalize on this demand, the railway is moving into long-distance overnight travel. Following the January 2026 launch of Vande Bharat sleeper services—which reported occupancy rates exceeding 100% in its first three months—the agency is preparing larger 24-coach sleeper trains. These new sets will carry approximately 1,224 passengers across various AC classes. The Integral Coach Factory in Chennai is expected to manufacture 50 of these 24-coach trainsets.

Entities

Indian Railways · Integral Coach Factory · Vande Bharat Express