Turns Cash Positive with Strong Market Position and Innovation-Led Growth

Ashok Leyland, the flagship company of the Hinduja Group, has delivered its best-ever third-quarter performance, achieving record-breaking revenue and profitability. With a net profit surge of 31% to ₹762 crore, the company has turned cash positive while maintaining a stronghold in the MHCV and bus segments.

“Our performance in Q3 reflects our commitment to profitable growth through strong product offerings, expanding market reach, and strategic cost optimization,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland. “With strong demand in both domestic and export markets, we anticipate further momentum in the coming quarters.”

According to its Q3 FY25 financial report, Ashok Leyland’s revenue increased to ₹9,479 crore, surpassing last year’s ₹9,273 crore, while EBITDA margins improved to 12.8%, marking the eighth consecutive quarter of double-digit EBITDA.

The company also reported 33% growth in export volumes, shipping 4,151 units in Q3 FY25, compared to 3,128 units in Q3 FY24. Its net cash position improved to ₹958 crore, a major swing from a net debt of ₹1,747 crore a year ago.

Market Leadership and Strategic Expansion

Ashok Leyland retained over 30% market share in the Medium and Heavy Commercial Vehicle (MHCV) segment, reaffirming its leadership in the Indian market. While bus segment sales rose by 5%, the MHCV truck volume declined slightly by 2%, in line with industry trends.

Shenu Agarwal, Managing Director & CEO, noted that the MHCV industry showed signs of recovery in Q3, growing 4-5% in January 2025, and is expected to maintain this momentum in Q4.

“We are optimistic about the commercial vehicle industry’s long-term potential, with government infrastructure spending, electrification, and export markets driving demand,” he said.

The company is also focused on cost efficiency, reducing material costs to 71.5% of revenue, down from 72.2% in Q3 FY24. This optimization has contributed to higher operating margins and stronger financial resilience.

LCVs, Electric Vehicles, and Export Growth

Ashok Leyland has expanded its LCV (Light Commercial Vehicle) portfolio with the launch of SAATHI, an entry-level mini-truck aimed at small-scale logistics and last-mile connectivity.

“SAATHI marks our entry into the high-demand entry-level LCV market, where we see immense potential,” said Agarwal. “We aim to increase our market share in the 2-4 ton category from 18.5% to 20% in the short term and 25% in the medium term.”

Record-Breaking Export Growth & Global Expansion

Exports were another key growth driver, with 4,151 units shipped in Q3 FY25, marking a 33% year-on-year increase. The company has significantly expanded its product mix beyond buses to include trucks, fueling its strong export growth, particularly in GCC, South Asia, and African markets.

“The GCC markets, particularly the UAE and Saudi Arabia, have been major contributors to this growth,” said Hinduja. “We are also preparing for entry into ASEAN markets by developing region-specific models and partnering with distributors.”

ASEAN is set to be the next big focus area, and the company is actively tying up with new distributors and developing customized products for this region, with plans to expand into Southeast Asia by FY26.

Innovation & Future Mobility Solutions at Bharat Mobility Global Expo

Ashok Leyland showcased three groundbreaking products at the Bharat Mobility Global Expo, highlighting its leadership in electric mobility and technological advancements.

• Electric Port Terminal Tractor – Developed for sustainable port logistics, marking a significant step toward industrial electrification.
• India’s First 15-Meter Front-Engine Bus – Designed for long-distance intercity travel, featuring 42 sleeper berths, offering enhanced passenger comfort and efficiency.
• Switch Electric Truck (7.5T GVW) – A zero-emission commercial truck, tailored for urban freight transport and sustainable last-mile delivery.

“With a strong pipeline of electric and alternative fuel vehicles, we are committed to maintaining our technology leadership in the commercial vehicle sector,” said Hinduja.

Investments in EV Subsidiary & Future Roadmap

The company’s EV arm, Switch Mobility, has secured orders for over 1,800 electric buses, including an export order for 100 units to Mauritius.

To further expand its EV and alternative fuel vehicle portfolio, Ashok Leyland has committed ₹500 crore in additional investment in Optare, the holding company of Switch Mobility. It has also allocated ₹200 crore for Hinduja Leyland Finance to strengthen its capital base and financing solutions for fleet operators.

With a strong financial foundation, a growing global presence, and a pipeline of innovative products, Ashok Leyland is poised for continued growth in the commercial vehicle sector.

“We remain committed to growing our market share, expanding our product portfolio, and leading the transition toward sustainable mobility solutions,” said Agarwal. “We believe macroeconomic factors and rising infrastructure investments will continue to drive commercial vehicle demand in the coming quarters.”

As FY25 enters its final quarter, the company is focused on expanding its product offerings, strengthening its EV ecosystem, and enhancing customer engagement to drive sustainable and profitable growth.