India Post sets 30% higher revenue target despite slow growth last year

The Department of Posts has set a high revenue target of ₹17,546 crore for the financial year 2025-2026. This is an increase of about 30 percent over the ₹13,240 crore they made in the financial year 2024-2025. The Department of Posts is really trying to make a lot money this time. The increase is a deal because the Department of Posts only saw a small growth of about 3 percent the year before that. The Department of Posts wants to make a jump, in the financial year 2025-2026. The people in charge of India Post want to make it a place that makes money of losing money. They want to do this by growing some parts of the business like sending parcels and packages helping people with money and selling insurance through the Post Office Savings Bank and postal life insurance. They also want to use things to help the business grow. If India Post can make 30 percent money in one year that would be great.. To do this they will have to work really hard and make some big changes. They will have to get better at making money from the things they do. They will have to make sure everything runs smoothly. There is a risk that things might not work out. That is a real concern, for India Post. (Key official statement: Union Communications Minister Jyotiraditya Scindia; Department/PIB Q3 review).

1) So what was actually announced and why does the announcement matter to people, like us who are following this story the announcement itself is what is really important here. We need to understand what the announcement is saying and why the announcement matters so much.

On 22 January 2026 the Department of Posts said they want to make ₹17,546 crore in revenue for the year that ends on 31 March 2026. This is an increase of about 30 percent from the last financial year. The Union Communications Minister, Jyotiraditya Scindia talked about this goal when he was reviewing the Department of Posts business, for the quarter. He said again that the Department of Posts wants to make a profit in the 4 to 5 years. The Department of Posts really wants to be a profit-making entity. They are working towards this goal. The company made an announcement. They also gave out some numbers. The revenue for the year 2025 was around ₹13,240 crore. This is a little more than the previous year it is up by about 3 percent. For the three quarters of the financial year 2026 the revenue was ₹10,155 crore. The companys revenue, for the year 2025 and the first three quarters of the financial year 2026 is what they reported.

Why this is important:

The size and public reach of India Post is really big. It is one of the postal networks in the world when you look at the number of outlets and how far it reaches. If India Post makes any changes, to the way it makes money it will affect millions of customers who live in rural areas and cities. India Post has a lot of customers. They will all feel the impact of these changes.

Fiscal optics: Moving a large public entity from cost centre to profit centre reduces fiscal drag and signals modernization of legacy services.

Competition and policy: The push also changes how India Post will compete with couriers and other logistics players and also with fintech and insurance providers. These sectors are really crowded. They are changing really fast. India Post has to compete with couriers and logistics players and also with fintech and insurance providers, in these crowded sectors.

2) What is the situation, with India Post. How did India Post do recently?

A few important data points to anchor the claim:

From FY24 to FY25 the revenue of the company increased a little from ₹12,790 crore to ₹13,240 crore, which’s about a 3 percent increase. This is an increase. It will be hard for the company to achieve a 30 percent target the year when the growth is so slow. The revenue increase is very small. It is a challenge to reach such a big target, for the revenue of the company in the next year.

For the three quarters of FY26 the company reported ₹10,155 crore. This shows that the company had a good run in the first three quarters. However they still need to do well in the last quarter to reach their goal of ₹17,546 crore, for the whole year. The company needs a last quarter to make this happen for FY26.

The numbers that are available to the show that the company has been growing at a slow and steady pace. This makes the goal of 30% for FY26 seem high and maybe even a bit too high, rather than just a small step up from what the company is doing now. The 30% target, for FY26 is what really catches my attention because it looks like the company is trying to do a lot more than it has been doing.

3) So where exactly will this extra money come from when it comes to the companys growth. We are talking about the things that will help the company make money the growth levers.

The Department of Posts does a lot of things. It handles mail, parcels, logistics, financial services like the Post Office Savings Bank, postal life insurance and other special services. We see in the news and the statement, from the PIB that the Department of Posts is counting on things to help it grow:

Parcels & e-commerce logistics

Parcel volumes from shopping are the clear way that postal systems around the world can grow right now. India Post has been working on being able to handle parcels. They are using their ability to reach all the way to peoples homes to deliver parcels to towns where private delivery companies are too expensive. If India Post can handle parcels and get more money for each delivery by charging different prices at different times or offering special services like faster delivery they can make a lot more money from parcel volumes. Parcel volumes are really important, for India Post. They can make more money from parcel volumes.

Financial services (SB accounts, small savings)

The Post Office Savings Bank is a place where people keep their money. When this place grows it makes money from things like helping people with their accounts. The Post Office Savings Bank can also sell financial products to its customers. This helps the Post Office Savings Bank make money from the people who already use it. Reports say that the Post Office Savings Bank and postal life insurance have been doing well lately.

Insurance and other financial products

People really trust Postal Life Insurance and other things that help with risk. This is because they have a lot of agents who can help people. If they make their products better and easier to get and if they use computers to sign people up they can get money from premiums and fees. Postal Life Insurance can really benefit from this.

Value-added services & diversification

India Post is looking at ways to make money. They are thinking about services that help people verify who they are online like e-KYC enabled services. They are also considering logistics solutions, for businesses, which means helping these businesses get their stuff from one place to another. The government also uses India Post to deliver services to people so that is another way for them to make money. Additionally India Post is looking at offering premium mail or express services, which would allow people to send mail and packages quickly and reliably. India Post has already started testing and expanding some of these services.

Operational improvements & yield management

We can make the delivery process better by finding the routes for our vehicles. We can also sort parcels in a hub. Then send them out to other places. If we charge more for delivery or, for bigger parcels we can make more money. By doing these things we can reduce our costs. Make more profit, which means we can say we have more revenue. This happens when we can charge prices or deliver more parcels.

4) Why a 30% target is ambitious — basic arithmetic and timing

The India Post department needs to make a jump from ₹13,240 crore in the financial year 2025 to ₹17,546 crore in the financial year 2026. This means India Post has to add around ₹4,306 crore to its revenue in one year. This is not easy for a government body like India Post that has old ways of working.

India Post made ₹10,155 crore in the three quarters of the financial year 2026. If they make the amount in the last quarter their total for the year would be around ₹13,540 crore.. India Post would still need to do extremely well in the last quarter, which is usually the busiest time of the year because of festivals and parcel deliveries and also make some big changes, to how they work in order to meet their target. Thus:

The target for this year depends a lot on how we do, in the quarter. It also depends on what happens during the parcel season.. We need to make sure we are aggressively adding new areas of business. The target really depends on the fourth quarter performance and the parcel seasonality. How quickly we can scale up these new areas of business like the new verticals.

The postal service does not usually see increases in revenue in just one year. This kind of thing only happens when something changes, like getting a large new contract or a change in the market. The Department is basically saying that they are going to make some changes to the way they operate. The postal service is going to try to do things to get these big revenue jumps. The Department is talking about making some operational changes, to the postal service.

5) The thing that really matters is whether these signals are actually telling us the thing. Do the signals line up when it comes to credibility of the signals?

Arguments for credibility:

There is momentum, in parcels and financial products. Recent quarterly data and statements show that parcels and some financial products have grown. This growth gives a base to accelerate parcels and financial products. Parcels and financial products are doing well. This is a good start for parcels and financial products to get even better.

The government is behind this. They have a plan. A minister is, in charge of a review and they have a public goal. This means the politicians and government workers really want to make it happen so they can get the money and instructions they need to make it a priority and start the projects.

Arguments against credibility:

The company had a time growing in the past. From FY24 to FY25 the growth was very slow at about 3 percent. This means the companys basic abilities were not strong enough or they were not getting better. It is hard to fix this problem in one year. The companys growth was weak. That is a big issue. The fact that the growth was so slow from FY24 to FY25 is a concern because the companys base capabilities were, under a lot of pressure or they were not improving.

The competition is really tough because private couriers like Delhivery, Blue Dart, Ecom Express and Amazon Logistics are getting bigger and better fast. It will be very difficult for us to get our share back. It might even affect our profits. Private couriers are doing a job and that is why they are growing so quickly. For example Delhivery, Blue Dart, Ecom Express and Amazon Logistics are all couriers that are doing very well. We have to be careful because private couriers, like Delhivery, Blue Dart, Ecom Express and Amazon Logistics are changing and improving all the time.

There are some problems that can slow down how fast we can grow. One of these problems is that we do not have space to move things around at the last step. We also need systems, for sorting things and we have to get better at using computers. Another thing is that our workers need training. These are all bottlenecks and they include last-mile capacity and sorting infrastructure and digitization gaps and workforce training.

The target is something that the company can reach. Only if they do a few things right. They need to handle parcels and make money from their financial services. They also need to make some changes to how they operate. The company might also need to get some money from one time things or have some quarters that are really strong because of the time of year. The target is achievable, for the company. They need to get all these things right.

6) What things would we actually have to do to make this work? We need a plan that says what we have to do step by step so we can really make this happen. What are the concrete actions that we would really need to take? We need a playbook, for this. The operational playbook should have all the things we need to do so we can follow it. Make sure we do not miss anything.

To get a 30 percent jump, in one year the Department of Posts probably needs to do a lot of things at the same time. Here are the usual steps that can actually work. Most of these steps are already being planned by the Department of Posts in some way:

Scale parcel sorting capacity quickly

We should put money into automated sorting hubs. We can use the facilities we already have and make some changes. We also need to make routes just for parcels and have more space to handle extra parcels during the busy season. This will help us get parcels to people faster. We can handle more parcels at the same time. The automated sorting hubs and special parcel routes will really help with parcel sorting and delivery and the extra space during the season will make sure we can handle all the parcels.

Improve pricing & product segmentation

We should offer special delivery options that cost more. These would include delivery that gets to the customer really fast and guaranteed delivery slots so the customer knows exactly when their package will arrive. We should also charge more for deliveries to remote or rural areas. This is because some customers are willing to pay extra for these services especially if they live away, from the city. The price of these deliveries could even change depending on the situation so we can charge more when customers are willing to pay it. This way we can make money from our remote and rural deliveries.

Partnerships with e-commerce and MSMEs

Sign volume contracts with large platforms and enable special solutions for small businesses (subscription-based pickup+delivery) to lock in steady flows.

Monetize financial products

We should use the customers of POSB and PLI to sell them things like simple insurance, small loans and services where we charge a fee for giving advice. If we do the paperwork online and make it easy for people to sign up it will be simpler to do this with a lot of people. We can use onboarding for POSB and PLI customers and make the know your customer process easier, for POSB and PLI customers. This way we can sell insurance and small loans to POSB and PLI customers more easily.

Digitize and track

Complete end-to-end tracking, customer-friendly apps, and payment integrations to improve customer experience — essential to win business from e-commerce sellers and consumers.

Optimize network & costs

Rationalize under-performing brick-and-mortar outlets while ensuring last-mile presence via franchises/third-party agents; optimize vehicle routing and fuel costs.

Performance incentives & metrics

Implement measurable KPIs for parcel delivery time, revenue per outlet, and customer satisfaction; introduce performance incentives for staff and officers to push parcel/financial KPIs.

If we do these things at the time and on a big scale the changes can bring in the extra money we need.. Each step has some problems. We have to think about the risk of something going wrong when we try to do it. We also have to think about how money we need to spend and how long it will take to see the results of the changes. The changes can bring in money but we have to be careful, with each step.

7) Risks and headwinds

With a good plan a lot of things can still go wrong and mess up the whole strategy. Several risks can totally derail the strategy. That is a big problem.

If there is a slowdown in the economy or if people have a time getting credit then people will not buy as much stuff. This means that companies, like ours that deliver packages will have packages to deliver. At the time it will cost us more money to deliver these packages because of high logistics costs. We need to pay attention to what’s happening in the economy and what experts are saying about the future. Macro indicators and forecasts will matter to our business.

There is a lot of competition. This is a big problem. Private companies might lower their prices. Give sellers a package deal with extra services. This will make it hard for India Post to keep its share of the market. It will also reduce the amount of money India Post can make. India Posts margins will be very small. The private players and India Post are. This competition is intense. India Post has to deal with this competition, from the private players.

There are delays when it comes to execution. Building sorting hubs or upgrading the existing ones takes time. So do digitization projects. Training the staff. These delays will reduce the things that can happen in the financial year 2026 for the company that is the upside of the financial year 2026 for the company. Execution delays like these are a problem, for the companys year 2026 upside.

There are rules and limits on what we can charge for things. This is because of public service obligations and politicians who want to keep prices low for some people. This can make it hard to get the possible price for the things we sell. The public service obligations and the pressure, from politicians to keep prices low can limit how money we can make from certain groups of people.

One-off accounting items are things that happen once. Some of these items like selling assets or getting a one-time transfer from the government can help meet a goal. This is something that can be done. It is not a good long term plan because one-off accounting items, like these will not keep happening. The thing about one-off accounting items is that they are not reliable.

8) Things to look at. How people who watch the markets and the analysts can see how the markets and the analysts are doing with the progress of the markets and the progress that the analysts are making.

To see if India Post is doing well halfway through the year you should pay attention to these indicators. You need to look for information that India Post shares or check their quarterly reviews for updates, on India Post.

The company gets money from areas, such as parcels, POSB, PLI, mail and international mail every quarter. It is good to see that the parcels part is growing and the finance part is doing well too. This growth, in parcels and the positive finance situation is a good sign. The parcels area is doing well and this is helping the company.

When we talk about parcels we need to think about how parcels there are and how much money we make from each parcel. The best situation is when the number of parcels grows and we also make money from each parcel. This is what we mean by parcel volumes and the average amount of money we get from each parcel.

The performance in the quarter is really important because this time of the year usually brings in a big part of the total parcel revenue in India. If the fourth quarter is going to be good we should see some signs of this in the guidance from the quarter to the fourth quarter or in the interim statements, for the fourth quarter and the third quarter.

New large contracts or partnership announcements with e-commerce platforms, logistics aggregators or government mail services.

We need to know how much money will be spent on equipment and computer systems for sorting. We also want to find out when these new systems will be up and running. The government will probably give us this information in their meetings or statements from the ministry. They will tell us about the spending, on sorting and information technology. When we can expect everything to be ready.

9) Broader implications — public policy and markets

If India Post is successful it will be really good for India Post. India Posts transformation will help micro and enterprises in India by giving them a way to send and receive things that is affordable and available everywhere in the country. This will make it cheaper for people to buy and sell things in areas. India Post will also not need much financial help from the government if it can make a profit. India Post becoming profitable is a deal, for India Post.

If things do not go as planned the company will face a problem. Failure to meet targets after telling the public about them could make people wonder if the plans are realistic. They will also question the people in charge. Whether it is possible to make money from old public utilities quickly. This could mean that people will be less likely to invest in the company in the future. The company might have to look for ways to make money, such, as partnering with private companies or selling off assets to achieve its goals. The main issue is that the public utilities need to make a profit and if they do not the company will have to try something. The public utilities are a part of the company and making them profitable is a big goal.

10) Independent view — plausible scenarios and likely outcome

Given the facts and typical operational timelines, here are three plausibility scenarios for FY26:

The company is hopeful that it will meet its goal. This is because of an increase in parcel delivery in the last quarter of the year. The company has also gotten some contracts from online shopping companies. Additionally the company is making money from its services faster than expected. All of these things will help the company make up for the ₹4,300 crore gap.. The company needs to do a great job and the market conditions need to be good for this to happen. It is possible that the company will meet its goal. It is not very likely. The parcel boom, in the quarter and the new e-commerce contracts are big factors that will help the company reach its target the parcel boom and the e-commerce contracts.

The base case is that India Post will have some success. India Post will see growth, around the middle of the teen percentages which is better than what they think will happen in FY25 but it will not be as high, as 30 percent. This will happen because the number of parcels being sent will increase and they will get prices for these services. They will keep working on this into FY27. This is the likely thing to happen because of the limitations they are working with. India Post is still the thing we are talking about here.

If the target is not met it is because things are not going as planned. There are delays in getting things done a lot of competition and some operational issues that slow things down. As a result growth is slow. The target is missed. India Post is still working on making itself better. It is doing so at a slower pace, with smaller increases each year. India Post is trying to modernize. This is something India Post has been doing for many years now.

11) Things India Post should think about doing. What I think they should really focus on in a way that makes sense for them. India Post should prioritize these things.

If the department really wants to increase the chances of meeting goals and having growth that will last these actions are the most important:

You should lock in volume contracts now. This will help you get guaranteed volumes from big online shopping sites for the financial year 2026. This way you can reduce the uncertainty about how much people will want to buy from you. Locking in these volume contracts will really help with the demand uncertainty, for volume contracts.

We should focus on getting a yield not just on selling a lot of things. If we make and sell high quality products and offer services that get things to people faster we can make more money without having to spend a lot more on big investments. This is because premium products and express services can bring in revenue for the company, which is a good thing, for our yield.

Accelerate digital onboarding for POSB/PLI cross-sell — low marginal cost and high trust make financial services a durable revenue source.

We need to focus on the quarter as our main goal. This means we should hire people to help us for a short time rent machines to sort things out and find faster ways to get things from one place to another. If we do these things for the holiday season it can really make a difference in how well we do in the financial year 2026. Making these changes now will help our Q4 numbers. Also have a good impact, on our overall financial year 2026 results.

We need to be open with the things we are doing. This means we have to tell people what is going on and we have to do it. We should report on what each part of the company’s doing so everyone can see what is happening. If we do this people will trust us more.. If something is not going right we can make changes to get things back on track. This is really important, for the company so we should make sure to do it with each department and make sure everyone knows what is going on with each department.

12) Final assessment — realistic optimism with caveats

The Department of Posts says they want to make a lot of money thirty percent more to be exact which is seventeen thousand five hundred and forty six crore rupees. This is a goal and it shows they are really trying. The Department of Posts can do this because they have a lot of places where people can send and receive mail people trust them with their money and a lot of people send parcels during holidays.. It will not be easy because the Department of Posts did not make a lot of extra money last year there are other companies that do the same thing and are very good at it and the Department of Posts has some problems, with how they do things. The most likely short-term outcome is meaningful improvement but short of the 30% unless India Post executes a high-tempo set of contracts, pricing changes and infrastructure upgrades quickly and successfully.