Ashok Leyland’s Record FY25 Driven by EV Surge and Product Push, CFO Says

Ashok Leyland Ltd, India’s second-largest commercial vehicle maker, capped FY25 with record profitability, driven by a surge in electric vehicle (EV) orders and new product launches, even as domestic small commercial vehicle growth lagged, Chief Financial Officer K.M. Balaji said on Friday.

“Ashok Leyland continues to focus on product innovation to meet dynamic customer and market needs and to maintain its technology leadership position in both ICE and alternate fuel spaces,” Balaji told a media briefing during the company’s Q4 FY25 earnings presentation. The company launched eight new products in FY25, including alternate fuel and EV offerings.

A key highlight was the company’s progress in electrification. “We backed a large order of about 180 BOSS 90-litre battery electric vehicles and AVTR 55-tonne battery electric vehicles,” Balaji said. Additionally, Ashok Leyland showcased a battery electric terminal tractor, which “could be ready for commercial production in the coming days.”

The bus segment also saw innovation with the introduction of the GARUD 15M, India’s first front-engine multi-axle bus chassis. “During the Auto Expo, we showcased a 15-metre front-engine bus, a first for the Indian market, which will be ready for commercial production in FY26,” Balaji noted.

In the light commercial vehicle (LCV) segment, the newly launched Saathi model gained traction. “Saathi, our 4T entry-level LCV segment vehicle, launched during Q4 FY25, has already created a very positive impact and has helped us regain 150 basis points in market share,” Balaji said. However, the 2–4-tonne small commercial vehicle segment faced challenges, with volumes down 1% year-on-year in Q4 due to competitive launches. “Our market share was affected in Q3 and Q4 due to the introduction of new products by other companies,” he acknowledged.

Exports were a bright spot, with volumes reaching 5,460 units in Q4 FY25, up 52% year-on-year, and full-year exports rising 30% to 15,255 units. “Our export volume growth rate has been rising sequentially, driven by our continued focus on export-specific products and our strong local presence in GCC, SAARC, and African markets,” Balaji said.

Financially, the company hit record highs. “It is noteworthy that Q4 FY25 revenue and PAT achieved an all-time high for Ashok Leyland,” Balaji stated. For FY25, standalone revenue grew 1%, profit before tax rose 15%, and profit after tax climbed 26%. “Our focus has been on profitable and sustainable growth through the levers of product superiority, BOSS leadership, and service excellence,” he added.

Balaji reiterated the company’s global ambitions: “Our mission is to be a top 10 global CV player, creating reliable products and solutions while delivering outstanding value to stakeholders.”

“Switch also opens new avenues for us with its electric bus program,” Dheeraj Hinduja, Executive Chairmain said. “The Indian market volumes for electric buses are growing, as you would have seen in recent government notifications. Upwards of 15,000 buses are currently being demanded, and Switch has a healthy volume of orders—we already have an order book of over 1,500 buses.”

Regarding when Switch Mobility would break into net profit, Hinduja confirmed that the company is aligning its product strategy and cost structure accordingly. “We’ve got the LCVs, and we’re launching new models in our bus portfolio as well. We are looking for a break-even this financial year. With the restructuring we’ve done, I think that’s very much possible,” he said, underlining the company’s confidence in transitioning from operational breakeven to profitability.