Ashok Leyland shares trade range-bound post Q4 results, declares 1:1 bonus

Ashok Leyland share price today

 

Shares of Ashok Leyland, the Indian flagship company of the Hinduja Group, was trading range-bound in an otherwise firm market even as the company reported a stellar performance for the March 2025 quarter (Q4) and for the full financial year 2024-2025 (FY25). Ashok Leyland delivered the highest-ever quarterly and annual revenues, earnings before interest, taxes, depreciation and amortisation (Ebitda), and profit after tax (PAT). The board has approved the issue of bonus equity shares in the ratio 1:1.

 

At 11:03 AM, Ashok Leyland shares were trading 0.67 per cent lower at ₹238 as compared to 0.51 per cent rise in the BSE Sensex. The stock opened 1.5 per cent higher at ₹243.15 on the BSE, before touching a low of ₹237.10 in the intraday trade. The counter is seeing huge trading volumes, with a combined 9.46 million equity shares having changed hands on the NSE and BSE thus far in the session.

 

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Ashok Leyland bonus shares news

 

The board of Ashok Leyland has approved the issue of bonus equity shares in the ratio 1:1 i.e. one equity shares of ₹1 each for every one full paid-up equity share of ₹1 each held by the shareholders of the company as on the Record Date. The bonus issue of shares will be subject to the approval of shareholders.

 

Ashok Leyland Q4 results

 

Ashok Leyland reported a 38.4 per cent year-on-year (Y-o-Y) rise in standalone net profit at ₹1,246 crore for Q4FY25, compared to ₹900.41 crore in the same period last year. Revenue from operations rose 5.68 per cent Y-o-Y to ₹11,907 crore as against ₹11,267 crore posted in Q4FY24.

 

The company's Ebitda rose 12.5 per cent Y-o-Y to ₹1,791 crore in Q4FY25, compared to ₹1,592 crore in the corresponding quarter of the previous fiscal. The Ebitda margin expanded by 90 basis points Y-o-Y to 15.04 per cent in Q4FY25, compared to 14.13 per cent in Q4FY24.

 

Management Commentary

 

The overall Commercial Vehicle (CV) volumes at 195,093 units were very close to the previous high of 197,366. Medium and Heavy Commercial Vehicles (MHCV) buses recorded the highest-ever volume of 21,249 units during the year. Export volume was also one of the highest in many years at 15,255 units, registering a growth of 29 per cent over PY (11,853 units).

 

The Power Solutions and Defence Businesses also posted impressive growth. The robust performance was driven by exceptional contribution from all business segments and well supported by the subsidiaries.

 

The company expects high margin non-cyclical business to continue to grow faster. Besides, the defence order book is at an all-time high and the management is very confident of revenue doubling over the next 2- 3 years. Q1FY26 MHCV volumes might see a decline on a high base, while volume growth is expected from Q2FY26 onwards mainly on account of a favourable base.

 

The company is in a very strong cash position, ending the year with a cash surplus of ₹4,242 crore. "This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are continuing on our premiumization journey with 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 realization," the management said.

 

UBS on Ashok Leyland

 

Q4FY25 was another strong quarter for Ashok Leyland with Ebitda beating UBS' and consensus by 1 per cent – 5 per cent. With 2W/cars volume growth moderating and competitive intensity high, MHCV industry is seeing some volume acceleration with strong pricing power considering the duopolistic nature.

 

The MHCV industry has seen a paradigm shift with significant smoothening in cyclicality and operating margins moving to a much higher band. This can already be seen in the current industry down-cycle over FY23-25 where in MHCV truck volume declined mere 10 per cent from peak {vs 50-70 per cent decline in past  3 down-cycles) and Ebitda margins expanding significantly by 460bps to 12.7 per cent for Ashok Leyland. The brokerage, therefore, reiterated its case of re-rating for the MHCV industry. It maintained a 'Buy' rating with a higher share price target of ₹295 (₹285 earlier).

 

ICICI Securities on Ashok Leyland

 

The company maintained a solid 30 per cent plus market share in the domestic M&HCV segment and saw a robust growth in exports (up 29 per cent annually) and non-CV businesses like spares and engines. Operational efficiency improved significantly, reflected in a cash surplus of ₹4,242 crore, enabling strategic investments in product innovation and EVs. The company launched six new products across segments and continued its focus on premiumization and cost leadership. Its EV subsidiary, Switch India, turned Ebitda positive with strong momentum, while the restructuring of Switch UK aims to reduce losses.

 

The management remains optimistic about FY26E, expecting growth across all CV segments, supported by favourable macro conditions, infrastructure push, and rising fleet replacement demand.

 

About Ashok Leyland

 

Ashok Leyland, flagship of the Hinduja group, is the second largest manufacturer of commercial vehicles in India, the fourth largest manufacturer of buses in the world, and the nineteenth largest manufacturer of trucks.

 

Headquartered in Chennai, nine manufacturing plants gives an international footprint – 7 in India, a bus manufacturing facility in Ras Al Khaimah (UAE), one at Leeds, United Kingdom and a joint venture with the Alteams Group for the manufacture of high-press die-casting extruded aluminium components for the automotive and telecommunications sectors, Ashok Leyland has a well-diversified portfolio across the automobile industry.