Apparently, you are just seeing things from profits and loss point of view I guess, and I respect your point of view.
However, People's livelihood depends on it. Moreover, since it is a public transporter, it is in a way duty of government to provide us with facilities. Han ye baat sahi hai ki politics kuch jyada hi hota hai. Which I think is main reason for big losses. Plus they do not take efficient decisions at all.
Trains like AII Shatabdi which have lower occupancy can be run with lower number...
more... of coaches. However, It has 17 coaches! I see clear examples of absence of troubleshooting to cope up with operational costs.