Chennai-based commercial vehicle major Ashok Leyland has announced a robust financial performance for Q4 and FY2025. The company reported achieving its highest-ever quarterly and annual revenues, EBITDA and profit after tax (PAT). 

For Q4 FY2025, the EBITDA of 15 percent at INR 17 billion, as against 14.1 percent at INR 15 billion last year. The PAT came at INR 12 billion, up 38.4 percent as against INR 9 billion last year. The company generated INR 32 billion in cash during the quarter.

In FY2025, the revenue came at INR 387 billion, a flat growth as compared to INR 383 billion last year, while EBITDA was 12.7 percent at INR 49 billion, as against 12 percent at INR 46 billion last year. On the other hand, the company PAT came at INR 33 billion, up 26 percent YoY, as against INR 26 billion reported last year.

The company ended FY2025 with net cash of INR 42 billion in hand, as against net debt of INR 890 million last year.

Ashok Leyland reported sales of 195,093 units for FY2025, which was very close to the record high of 197,366 units, with M&HCV buses witnessing its best year with sales of 21,249 units. Export volumes were also amongst its best performance in the recent past at 15,255 units, up 29 percent as compared to 11,853 units last year.

Dheeraj Hinduja, Chairman, Ashok Leyland, said, “Achieving these record-breaking numbers is a matter of immense pride for us. It reflects the resilience of our business and the trust our customers place in us. Given Company’s strong financial performance in the last three years, the Board of Directors has approved a 1:1 bonus share issue. This is on the back of two interim dividends announced for FY25 amounting to 625 percent, or INR 6.25 per share. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth.”  

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said “FY2025 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. The company is in a very strong cash position, ending the year with a cash surplus of INR 42.42 billion. 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 realisation.”

Going forward, the company shared that in addition to electric vehicles led by Switch Mobility, it is also working on alternative fuel strategy including LNG and hydrogen.

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Larsen & Toubro’s Construction & Mining Machinery business has entered into a partnership with FAYAT Road Equipment Division India to market BOMAG road milling machines, soil stabilisers and cement spreaders in India. The agreement encompasses marketing, sales, aftersales support and the supply of spare parts.

FAYAT is a France-based construction group and road equipment supplier, while Germany-headquartered BOMAG operates within FAYAT’s Road Equipment Division. The equipment range will join L&T’s current road machinery portfolio, expanding the company’s coverage across road construction, maintenance and infrastructure development applications.

Anil V Parab, Senior Executive Vice-President and Whole-time Director - Manufacturing, Larsen & Toubro, said, “Our Construction & Mining Machinery business has a long history of introducing advanced equipment technologies in India. In fact, we are the pioneers to introduce hydraulic excavators in India. The addition of BOMAG’s specialised road construction equipment further strengthens this legacy.”

“L&T’s nationwide service network, supported by its central warehouse in Nagpur, will help ensure prompt technical support and dependable after-sales service throughout the equipment lifecycle. Together, L&T and FAYAT aim to enhance customer productivity, improve project efficiency and build a strong platform for long-term growth in the Indian market,” added Parab.

Abhijit Som, MD, FRED India, said, “India is a key strategic growth market for the FAYAT Group. As the country advances towards realising its vision of Viksit Bharat by 2047, continued investment in infrastructure will drive demand for advanced, efficient and sustainable road construction solutions. With a legacy spanning several decades and a presence in more than 170 countries, FAYAT is well-positioned to bring its global expertise and technologies to support this growth. The introduction of BOMAG’s specialised road construction technologies in India, combined with L&T’s extensive market reach, deep customer relationships and service infrastructure, creates a compelling synergy. The partnership will enable customers to access advanced and reliable equipment solutions backed by strong local support.”

L&T will manage nationwide product support through its distribution network and central parts warehouse located in Nagpur.

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Bombay Logistics has flagged off a fleet of liquefied natural gas heavy-duty trucks manufactured by Blue Energy Motors for commercial operations in Karnataka. The vehicles will operate in the Toranagallu region to support industrial freight transport for JSW Steel.

The LNG trucks are said to offer up to 20 percent higher fuel efficiency compared to conventional fuel equivalents, reducing carbon intensity across long-haul freight operations.

Thimmaraj Kakarla, Managing Partner, Bombay Logistics, said, “For us, the move to LNG is about finding a practical solution that works on the road and makes commercial sense. The performance and fuel efficiency of the Blue Energy Motors trucks were important considerations, while the Blue Energy Motors team’s support throughout the deployment, from vehicle handover and route planning to on-ground assistance, made the transition seamless. As these trucks begin operations for JSW Steel, we see this as a meaningful step towards improving operating efficiency while reducing the carbon footprint of our freight movement.”

Anand Mimani, CEO of EV and New Energy, Blue Energy Motors, said, “We are pleased to support Bombay Logistics in deploying our LNG trucks for demanding industrial operations. For us, the priority is simple: deliver the performance and reliability the customer needs while making the shift to cleaner freight practical.”

At present, Blue Energy Motors maintains an operational fleet of over 1,400 alternative-fuel trucks across Indian freight corridors. The company says these vehicles have recorded over 100 million kilometres and reduced carbon dioxide emissions by more than 30,000 tonnes.

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Ashok Leyland’s battery pack manufacturing plans are designed to boost vehicle integration and open new revenue streams, not just cut costs or meet local-sourcing rules, said Chief Executive Officer Shenu Agarwal during the company’s Q1 FY27 financial results announcement.

The Hinduja Group-controlled truckmaker is building a battery pack plant in Tamil Nadu, with production slated to start in 2027. The facility, located in the SIPCOT Pillaipakkam Industrial Park near Chennai, forms the first phase of a broader INR 75 billion commitment by the group.

Speaking to Motoring Trends on the same, Agarwal's said, “Don't look at the battery pack business just from a cost perspective or localisation perspective. The company will meet local-content requirements to the extent that we can make it more efficient.”

He added that the company is designing its own battery packs and battery management systems in-house, which will let the company integrate it better into its vehicles and create a total cost of ownership advantage for the customer.

The strategy also extends beyond Ashok Leyland's own line-up. “We are also evaluating how to supply the solutions to other automotive players,” Agarwal said, while pointing to rising demand for battery energy storage systems as a separate growth avenue.

“This battery pack business has multiple dimensions,” he noted, adding that the initiative is meant to enhance value for truck and bus customers rather than serve as a narrow cost play.

Earnings call

Ashok Leyland posted a record first quarter with strong domestic commercial-vehicle demand helping the automaker withstand disruptions in international markets and broader geo-political uncertainty.

The company achieved its highest-ever first-quarter revenue, profit before tax and net profit, while its cash position improved by INR 14.31 billion from a year earlier, net of dividend, capital expenditure and investments in group companies, Executive Chairman Dheeraj Hinduja said.

“The business environment tested the robustness of our processes and resilience of our teams and partners. Ashok Leyland has come out stronger, achieving new peaks,” Hinduja said.

Domestic commercial-vehicle industry volumes grew in double digits during the quarter with Ashok Leyland's medium and heavy commercial vehicle truck volumes rising 15 percent from a year earlier.

Domestic light commercial vehicle volumes reached a record 18,874 units, while the company’s overall commercial-vehicle volumes increased 10 percent year-on-year, Hinduja said.

The company also maintained its 14th consecutive quarter of double-digit EBITDA margin underscoring its focus on profitable growth, he said.

Non-commercial vehicle businesses including aftermarket, engines and defence also reported healthy performance, Hinduja said. The company continued to invest in products and manufacturing capabilities including the launch of multi-axle trucks equipped with air suspension, which offers higher payload and lower TCO.

Ashok Leyland also launched a 12-meter fuel-cell bus, which Hinduja described as an industry first.

Its electric mobility subsidiary Switch India recently secured an order for 650 electric buses, while the group’s financing businesses, Hinduja Leyland Finance and Hinduja Finance, reported assets-under-management growth of 20 percent and 13 percent, respectively.

The company remains cautious about global uncertainties but is confident of navigating them on the back of the stronger foundation built in recent years, Hinduja said.

“It was satisfying to see the company deliver in the face of challenges presented by global uncertainties. Our performance demonstrated that the business model we have developed can absorb shocks,” he said.

“We remain cautious of global uncertainties but we are confident of navigating these based on the strong foundation we have built over the last few years,” Hinduja added.

The comments come as Ashok Leyland's international commercial-vehicle volumes fell to 2,461 units in the first quarter from 3,011 a year earlier, primarily because of the crisis in West Asia. Growth in South Asia and Africa partly offset the decline with the company seeing stronger momentum from June.

Hinduja said the company’s domestic performance demonstrates the strength of India's commercial-vehicle market and gives it confidence in its ability to sustain growth despite external volatility.

Ashok Leyland’s battery strategy comes as the company strengthens its portfolio amid robust domestic demand and global uncertainty. By developing battery packs and management systems in-house, the automaker aims to capture more value across the electric-vehicle ecosystem, while exploring external customers and energy-storage applications as additional growth opportunities beyond its core vehicle business.

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Mahindra Truck and Bus, a division of the Mahindra Group, has introduced the Mahindra Blazo i-TRK heavy commercial vehicle range in India.

The vehicle range features Mahindra's 320hp mPOWER engine and the iMAXX 2.0 fleet telematics platform.

The company says the new Blazo i-TRK delivers up to 10 percent higher fuel efficiency compared to previous models. Mahindra has also introduced a 48-hour uptime guarantee for the vehicle range, offering a compensation scheme of INR 10,000 per day in cases where service timelines are not met.

The telematics platform connects vehicle systems to provide fleet operators with operational data, remote monitoring capabilities and maintenance management tools. The integration of connected vehicle technology is intended to support freight movement and fleet productivity across Indian transport routes.

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