TGSRTC Posts Record Rs 1,059-Crore Surplus After Decade of Losses

Hyderabad: After reporting losses for nearly a decade, the Telangana State Road Transport Corporation (TGSRTC) posted its highest-ever annual surplus of Rs 1,059.2 crore in 2025-26.

Higher passenger traffic, the Mahalakshmi free bus travel scheme for women, govt reimbursements, and expenditure-control measures contributed to the turnaround.According to a report submitted to the state govt, TGSRTC has set a target of earning a surplus of Rs 1,118.8 crore in 2026-27. It has projected revenue of Rs 9,639.5 crore against expenditure of Rs 8,520.6 crore during the current financial year.The corporation had been reporting losses continuously from 2014-15 to 2022-23.

Its financial position deteriorated sharply during the Covid-19 pandemic, when passenger services were severely disrupted. In 2020-21, revenue dropped to Rs 2,455.52 crore while expenditure stood at Rs 4,784.75 crore, resulting in a loss of Rs 2,329.23 crore—the highest in the corporation’s history.Losses continued over the next two years, although they narrowed as passenger numbers recovered. TGSRTC reported a loss of Rs 1,986.59 crore in 2021-22, which reduced to Rs 672.39 crore in 2022-23.

The corporation returned to surplus in 2023-24 after nearly a decade, posting a surplus of Rs 104.10 crore. The surplus increased to Rs 590.30 crore in 2024-25 before reaching a record Rs 1,059.27 crore in 2025-26.Its revenue has also grown steadily over the past decade, rising from Rs 3,294 crore in 2014-15 to Rs 9,374.18 crore in 2025-26.TGSRTC managing director Y Nagi Reddy attributed the improvement partly to the Mahalakshmi scheme, introduced in Dec 2023, under which women can travel free on RTC buses.“The scheme significantly increased bus occupancy, with the occupancy ratio rising from around 67% to 98%. Since the state govt reimburses the corporation for the free tickets issued under the scheme, it has also supported revenue growth,” he said.He added that the corporation had also increased revenue through revisions in passenger charges, including toll, safety cess and round-up charges. On the expenditure side, salary costs declined as a large number of employees retired in recent years.

TGSRTC has also expanded the use of hired buses instead of adding to its own fleet, helping reduce operational costs.The state govt recently implemented a wage revision for TGSRTC employees. However, the additional financial liability arising from the revised pay will largely be settled at the time of employees’ retirement, limiting its impact on the corporation’s expenditure during 2025-26.With revenue continuing to grow and expenditure remaining under control, TGSRTC expects to maintain its surplus during the current financial year.