The proposed ICAL experiment at INO aims to identify the neutrino mass hierarchy from observations of atmospheric neutrinos, and help improve the precision on the atmospheric neutrino mixing parameters. While the design of ICAL is primarily optimized to measure muon momentum, it is also capable of measuring the hadron energy in each event. Although the hadron energy is measured with relatively lower resolution, it nevertheless contains crucial information on the event, which may be extracted when taken concomitant with the muon data. We demonstrate that by adding the hadron energy information to the muon energy and muon direction in each event, the sensitivity of ICAL to the neutrino parameters can be improved significantly. Using the realistic detector response for ICAL, we present its enhanced reach for determining the neutrino mass hierarchy, the atmospheric mass squared difference and the mixing angle θ 23 , including its octant. In particular, we show that the analysis that uses hadron energy information can distinguish the normal and inverted mass hierarchies with ∆χ 2 ≈ 9 with 10 years exposure at the 50 kt ICAL, which corresponds to about 40% improvement over the muon-only analysis.