Department of Posts' India revenue jumps 16% to ₹15,296 crore in FY26;; flags parcels, mail as next growth drivers

The Department of Posts India reported a 16 per cent year-on-year rise in revenue to ₹15,296 crore in FY2025-26, with Communications Minister Jyotiraditya Scindia terming the period a “historic year” marked by strong financial performance and ongoing structural transformation.

The department had recorded revenue of ₹13,218 crore in FY2024-25. Against a total business target of ₹17,546 crore for FY26, it achieved about 88 per cent, reflecting steady traction across segments.

Performance was broad-based, with eight postal circles exceeding 90 per cent of their targets and 14 others achieving between 80–90 per cent, indicating consistent execution across regions.

Growth momentum across business verticals

Key business segments posted robust growth during the year. Citizen Centric Services (CCS) emerged as the fastest-growing vertical with 70 per cent growth, while parcel operations expanded by 69 per cent and mail services by 34 per cent.

Insurance products under PLI/RPLI grew 30 per cent, and the Post Office Savings Bank segment registered a 13 per cent rise. Among regional performers, Rajasthan Circle stood out by achieving 102 per cent of its revenue target along with 34 per cent growth, setting a benchmark for others.

Officials said the performance reflects a combination of service expansion, customer acquisition and improved operational efficiency across the postal network.

Focus shifts to core logistics and efficiency

Despite the gains, the government has identified parcels, mail and international business as areas requiring sharper focus to unlock their full potential. Scindia noted that these core segments will be critical in driving the next phase of growth as India Post transitions into a modern logistics and service platform.

He emphasised the need for stronger accountability, better cost discipline and closer monitoring of performance metrics, including expenditure coverage ratios. Efforts are also underway to strengthen organisational structures at the circle level, with dedicated verticals for parcel operations, human resources, finance and business development.

Strategy for next phase of expansion

Going forward, the department plans to scale up high-growth segments, particularly citizen-centric services, while accelerating parcel and mail businesses through deeper market engagement. There is also a renewed push to expand insurance and savings products and revive international operations.

The government is encouraging adoption of a more sales-driven approach, supported by leadership-led business acquisition and structured customer lifecycle strategies. Integration of mail and parcel operations, along with targeted interventions in underperforming regions, is expected to improve overall efficiency.

With FY26 performance providing a strong base, India Post is positioning itself as a diversified, customer-centric services and logistics platform, aiming to sustain higher growth momentum in FY27.