Ashok Leyland Q4 PAT surges 38%, EBITDA up 15%

Commercial vehicle manufacturer Ashok Leyland reported a 38% year-on-year increase in net profit to Rs 1,246 crore in the January to March quarter of FY25, as against Rs 900 crore in the same period last year. 
 The company’s revenue from operations surged by 6% to Rs 11,907 crore in Q4 of FY25, as against Rs 11,267 crore in the same period last year. 
 
One of the important highlights of the company’s financial performance was its EBITDA growth for the quarter as well as the full year. The EBITDA of the Indian subsidiary of the Hinduja Group grew 15% to Rs 1,791 crore in Q4 of FY25, as against Rs 1,592 crore in the same period last year. 
 
Notably, the company’s EV subsidiary Switch Mobility posted a double-digit EBITDA margin in Q4 of FY25, and achieved EBITDA break-even for FY25, Dheeraj Hinduja, Executive Chairman, Ashok Leyland said in a post-earnings media briefing. 
 
Notably, the overall commercial vehicle volumes stood at 195,093 units. MHCV (medium and heavy commercial vehicles) buses recorded ever highest 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%. 
 
Going ahead, the company remains optimistic towards growth. “We are quite optimistic about FY26. We do realise that there is an all-time high aging of fleets. The age of the current population of trucks in the country has gone beyond 9-9.5 years, which normally used to be 7-7.5 years. And we think that this should play out at some point in time. We think that the macroeconomic factors are pretty strong, whether it is capex or the prediction of a good monsoon or the improvement in the interest rates, etc,” says  Shenu Agarwal, MD & CEO, Ashok Leyland.
 
“We also think that the bus industry specifically has, still has pent-up demand left. So, we think all these factors would play in our favour. And the lowering of interest rate also helps the industry,” he adds.