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Ashok Leyland posts record Q4 profit, plans ₹1,000 crore FY26 capex
Commercial vehicle major Ashok Leyland, the Indian flagship of the Hinduja Group, has posted its highest-ever quarterly and annual revenue, EBITDA and net profit during the fourth quarter of financial year 2024–25, at ₹1,130.09 crore — up 32 per cent from ₹853.41 crore in the same quarter last year (Q4FY24).
The company's consolidated revenue from operations rose 9 per cent to ₹14,695.65 crore during the quarter under review, from ₹13,542.37 crore in Q4FY24. For the full financial year 2024–25, the company reported a net profit of ₹3,100.8 crore, up 25 per cent from ₹2,483.5 crore in FY24. Annual revenue rose 6 per cent to ₹48,535.14 crore, from ₹45,703.34 crore in FY24.
Ashok Leyland has lined up a capital expenditure of around ₹1,000 crore for FY26 — similar to the previous year — and expressed optimism about the current fiscal. Its electric vehicle arm, Switch Mobility, is expected to achieve breakeven in FY26.
'Achieving these record-breaking numbers reflects the resilience of our business and the trust our customers place in us. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth,' said Dheeraj Hinduja, Chairman, Ashok Leyland.
'We have a net cash surplus of ₹4,242 crore now, compared to a debt of ₹89 crore during the same time last year. Hence, we have some aggressive plans on product technology and after-sales, as the company is in a better financial position. We would like to have more value addition in our products,' said Shenu Agarwal, Managing Director and Chief Executive Officer.
The company's board of directors has approved two interim dividends — ₹2 per equity share in November 2024, and ₹4.25 per share on 16 May 2025. The total dividend for the year amounts to ₹6.25 per share. The board has also approved the issue of bonus equity shares in the ratio of 1:1.
'We are quite optimistic about FY26. We also think that the bus industry has hit pent-up demand. The lowering of interest rates also helped the industry,' Agarwal added.
Ashok Leyland's EBITDA for FY25 stood at 12.7 per cent (₹4,931 crore), compared to 12 per cent (₹4,607 crore) in the previous year.
The overall commercial vehicle (CV) volumes for FY25 stood at 195,093 units, close to the previous high of 197,366 units. Medium and heavy commercial vehicle (MHCV) buses recorded their highest-ever volume at 21,249 units. Export volume was also among the highest in many years at 15,255 units — up 29 per cent from 11,853 units in the previous year. The Power Solutions and Defence businesses also posted strong growth. The robust performance was driven by exceptional contributions across all business segments, well supported by subsidiaries.
'FY25 has been another landmark year for us. We've set new records in revenue, EBITDA and profitability. Our margin expansion and robust cash generation reflect the strength of our operations. It also gives us immense satisfaction to achieve our medium-term goal of mid-teen EBITDA in Q4. We are continuing on our premiumisation journey with a high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realisation,' said Agarwal.
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