Ashok Leyland posts record Q4 profit, plans ₹1,000 crore FY26 capex

Commercial vehicle (CV) major Ashok Leyland, the Indian flagship of the Hinduja group, on Friday reported its highest ever quarterly and annual revenue, earnings before interest, tax, depreciation and amortisation (Ebitda), and net profit.

 

At ₹1,130.09 crore, its net profit in the January-March quarter of 2024-25 (Q4FY25) was 32 per cent higher than the ₹853.41 crore reported in the year-ago period. The company’s consolidated revenue from operations grew 9 per cent year-on-year (Y-o-Y) to ₹14,695.65 crore from ₹13,542.37 crore in Q4FY24.

 

For full FY25, its net profit grew 25 per cent Y-o-Y to ₹3,100.8 crore, while revenue was up 6 per cent at ₹48,535.14 crore.

 

 

Ashok Leyland said it had lined up around ₹1,000 crore for capital expenditure in FY26 — a level similar to the previous year. The company added it was optimistic in its outlook for the current year, with its electric vehicle (EV) arm Switch expected to break even.

 

“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 on international operations, we are well-positioned for sustained and profitable growth,” said Ashok Leyland Chairman Dheeraj Hinduja.

 

“We have a net cash surplus of ₹4,242 crore now, against a debt of ₹89 crore during the same time last year. Hence, we have some aggressive plans on product technology and after-sales, as we are in a better financial situation. We would like to have more value addition in our products,” said Shenu Agarwal, the company’s managing director and chief executive officer.

 

 

The company said its board of directors had approved two interim dividends — of ₹2 per equity share in November 2024 and of ₹4.25 per equity share on May 16, 2025. The total dividend declared for FY25 amounts to ₹6.25 per share. It 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 pent-up demand. The lowering of interest rates also helped the industry… 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,” Agarwal added.

 

Ashok Leyland’s FY25 Ebitda stood at 12.7 per cent (₹4,931 crore), against 12 per cent (₹4,607 crore) the previous year.

 

Overall CV sales volumes, at 195,093 units, were close to the company’s previous high of 197,366. Medium and heavy CVs recorded their highest ever sales volumes of 21,249 units during FY25. Export volumes were also high at 15,255 units — 29 per cent growth over the previous year.