India Post records ₹2,100 crore revenue jump in FY26, fastest in years

India Post’s revenue rose to ₹15,373 crore in 2025-26 as the postal department undertakes a major technology and infrastructure overhaul to reposition itself as a modern digital and financial services network.

Union Minister of State for Communications Chandra Sekhar Pemmasani said the department recorded an unprecedented single-year revenue increase of about ₹2,100 crore in FY26, compared with the historical annual growth trend of ₹200-300 crore.

In an interview with DD India, the minister said India Post’s revenue stood at around ₹11,500 crore in 2016 and the latest growth marked one of the strongest financial performances in the department’s 170-year history.

He attributed the turnaround to a dual-pronged strategy involving top-down market identification and accountability mechanisms along with workforce engagement at the grassroots level.

India Post’s parcel and logistics business grew 70% during the year, aided by technology integration and tie-ups with e-commerce companies, Pemmasani said.

Parcel revenue, which was around ₹600 crore when the current leadership assumed office, is estimated to have the potential to touch ₹10,000 crore, he added.

The department has introduced OTP-based delivery, SMS tracking, UPI-enabled payments and B2B partnerships with e-commerce platforms, while also rationalising delivery routes to speed up shipments.

After pilot projects, India Post has rolled out 24-hour and 48-hour Speed Post delivery services across six metro cities.

Pemmasani said that as traditional letter mail becomes increasingly marginal, logistics and parcel services represent the primary growth frontier for the department.

As part of its modernisation plans, India Post is investing ₹5,800 crore under the Advanced Postal Technology initiative of IT 2.0 to enable end-to-end digital postal services.

The initiative aims to allow customers to buy postal savings instruments and insurance products such as Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) online, download certificates instantly and receive maturity proceeds directly into bank accounts without visiting post offices.

Pemmasani said postal savings accounts offering 4% interest rates are expected to gain traction through enhanced digital access.

The IT upgrade also includes facial recognition-based access systems, e-KYC, Aadhaar integration and compliance with national cloud security protocols.

Through India Post Payments Bank, India Post currently distributes around ₹45,000 crore annually through Direct Benefit Transfer schemes, the minister said.

IPPB personnel equipped with mobile devices and biometric systems provide doorstep banking services, including fund disbursement and bill collection, particularly in rural areas.

The minister said 3.8 crore girls have been enrolled under the Sukanya Samriddhi Yojana, which is being implemented in saturation mode through India Post’s rural network.

India Post’s Gramin Dak Sevak workforce of around 2.5 lakh personnel is also promoting women-centric savings products, self-help group linkages and rural savings accounts, he added.

Urban post offices are being modernised with investments of ₹60-70 lakh per facility, incorporating digital counters, Aadhaar updation services and shared workspaces.