India Post Creates History-Records ₹8,213 Crore Revenue in First Half of FY 2026–27, Parcel Business Grows 71%

India Post has achieved a major financial milestone, recording quarterly revenue exceeding ₹4,000 crore for two consecutive quarters for the first time. The Department of Posts generated ₹8,212.7 crore during the first half of FY 2026–27, registering a year-on-year increase of 24% and highlighting the growing contribution of its parcel, insurance, financial services and international business operations.

According to figures released by the Ministry of Communications on October 22, 2026, revenue increased from ₹6,636 crore during April–September 2025 to ₹8,212.7 crore in the corresponding period of 2026. The Department earned ₹4,201.5 crore during the second quarter, representing 25% growth over the previous year and a 5% increase over the first quarter.

The performance was reviewed at a meeting in New Delhi chaired by Union Minister of Communications Jyotiraditya M. Scindia. Minister of State for Communications Chandra Sekhar Pemmasani, Secretary (Posts) Subrat Das, senior postal officials and Chief Postmasters General from across the country participated in the review.

Parcel Business Emerges as a Major Growth Driver

India Post’s parcel business recorded the highest growth among its major operating segments, registering a 71% year-on-year increase. The segment generated ₹318.9 crore during the second quarter, reflecting expanding opportunities in parcel transportation, distribution and logistics services.

The Kerala, North East, Uttar Pradesh and Bihar Postal Circles exceeded their quarterly parcel business targets. Their performance demonstrates the growing importance of regional postal networks in supporting commercial deliveries and connecting businesses with customers across the country.

The expansion of parcel operations is particularly relevant to India’s growing e-commerce industry, small businesses and rural enterprises. India Post’s extensive delivery network provides an important logistical foundation for businesses seeking access to customers beyond major metropolitan centres.

All Major Business Segments Register Revenue Growth

India Post recorded year-on-year growth across all six business verticals during the first half of FY 2026–27. Postal Life Insurance and Rural Postal Life Insurance registered a combined increase of 44%, while the Mails business grew by 36%.

International Relations and Global Business recorded 38% growth, reflecting an expanding contribution from international postal services and related business activities. Post Office Savings Bank operations registered an 18% increase, while the parcel segment led with 71% growth.

During the second quarter, Post Office Savings Bank contributed ₹1,987 crore to departmental revenue. The Mails business also improved its performance, recording a 26% increase over the preceding quarter, with 12 Postal Circles achieving or exceeding their quarterly targets.

The insurance segment achieved 92% of its quarterly target, demonstrating the continuing contribution of postal insurance services to the Department’s overall business operations.

Bihar, West Bengal and North East Lead Postal Circle Performance

The Department reported improvements in business performance across several Postal Circles during the second quarter. Seven Circles achieved at least 90% of their proportionate quarterly revenue targets.

Bihar emerged as the leading Circle with 97.15% target achievement, followed closely by West Bengal at 97.07% and North East at 94.79%.

For the first half of the financial year, West Bengal recorded the highest proportionate target achievement at 95.72%, followed by Bihar at 95.12% and Andhra Pradesh at 94.63%.

Eighteen of the country’s 23 Postal Circles improved their target achievement compared with the first quarter. The Department also reported improved expenditure performance across 22 Circles, indicating progress in operational management.

Andhra Pradesh Postal Circle received recognition for its performance during April–June 2026, while Bihar Postal Circle was recognised for its achievements during July–September 2026.

India Post Focuses on Digitisation and Customer-Centric Services

During the quarterly review, Communications Minister Jyotiraditya Scindia emphasised the importance of customer acquisition, service quality and business diversification in sustaining India Post’s revenue growth.

He called for greater innovation, stronger leadership and improved customer retention. The Minister also encouraged flexible pricing arrangements for bulk customers, subject to applicable policies and approvals, to improve the Department’s competitiveness in commercial logistics.

Digitisation emerged as another priority, with the Minister stressing the need to accelerate the transformation of postal services through technology. Modern digital systems are expected to improve customer experience, streamline operations and strengthen the Department’s ability to compete in a rapidly evolving logistics market.

Minister of State Chandra Sekhar Pemmasani highlighted the need for workforce empowerment, greater accountability and standardised operating procedures. He particularly emphasised real-time monitoring of parcel deliveries to reduce delays and improve customer satisfaction.

New Opportunities in MSMEs, Agro-Logistics and Rural Services

India Post is expanding its business strategy beyond conventional mail delivery by strengthening its presence in logistics, financial inclusion and citizen-centric services.

The Department’s review identified three major areas for targeted business development: agro-logistics and international business; MSMEs, One District One Product initiatives and tourism; and citizen-centric services, financial inclusion, insurance and rural logistics.

The cluster-based approach seeks to align postal services with the requirements of local economies and emerging commercial activities. It also provides opportunities for small enterprises, agricultural producers and rural businesses to use India Post’s distribution infrastructure.

Postal Circles have been directed to strengthen parcel operations and international business while accelerating the introduction of citizen-centric services in collaboration with state governments.

The Department will also focus on managing expenditure and improving service delivery during the festive season, when parcel volumes and logistics requirements generally increase.

Strengthening India’s Postal Network for Financial Sustainability

India Post’s latest financial performance reflects its efforts to diversify revenue sources while maintaining its traditional role in public service delivery.

The Department reported an expenditure cost ratio of 42% including pension expenditure and 62% excluding pension expenditure. Twenty-two Postal Circles recorded improvements in their respective ratios compared with the first quarter.

The strong growth in parcels, insurance, international business and postal banking services highlights the increasing commercial importance of India’s postal infrastructure.

With its nationwide network, established presence in rural communities and expanding digital capabilities, India Post is strengthening its position as a provider of integrated postal, logistics and financial services.

The achievement of consecutive ₹4,000 crore revenue quarters marks an important step in the Department’s transformation towards a more diversified, customer-focused and financially sustainable postal system.

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References

1. Press Information Bureau, Ministry of Communications, Government of India. India Post Creates History, Crosses ₹4,000 Crore Revenue Mark for Two Consecutive Quarters. October 22, 2026.
2. Department of Posts, Government of India. Second Quarter Business Review, FY 2026–27, October 22, 2026.
3. Jyotiraditya M. Scindia, Union Minister of Communications. Official statement on India Post’s second-quarter financial performance, October 22, 2026.

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