24 May 2025: Ashok Leyland, the second-largest commercial vehicle manufacturer in India, has revealed a 1000 crore capital expenditure plan to help finance its subsidiaries and enable Switch Mobility to break even by the end of the upcoming fiscal year. With the help of its subsidiary Switch Mobility, Ashok Leyland hopes to expand its selection of commercial vehicles and make large investments in electric vehicle solutions.
Between Ashok Leyland and Switch, the company currently offers the largest selection of battery-electric trucks in the nation. Included in this range are Switch products, designed for the 2–3.5-tonne GVW category, and the BOSS electric truck, catering to the 14–19-tonne market.
During an earnings call, the company leadership expressed a lot of optimism regarding the outlook for FY26. Executive Chairman Dheeraj Hinduja confirmed that the company is aligning its product strategy and cost structure with the Switch Mobility business. “We are adding new bus models to our lineup in addition to the LCVs. “We want to break even this fiscal year,” he stated.
The parent company, Ashok Leyland, reported a consolidated revenue of Rs 38,753 crore from the sale of commercial vehicles, with a net cash position of Rs 4,242 crore at the end of FY25, including Rs 3,284 crore in revenue from the fourth quarter.
Chief Financial Officer K.M. Balaji discussed the company’s plans during the post-earnings conference call, stating, “We incurred Rs 1,000 crore in capital expenditure during FY25, and a similar amount is projected for the current fiscal year.”
Group-level investments for FY26 will be in accordance with the needs of the group subsidiaries, Balaji continued. Because “we are observing that Switch India and Hinduja Leyland Finance require investment support,” he explained, the money would be disbursed during the fiscal year.
In addition, Switch Mobility, which concluded the fourth quarter of FY25 with a robust double-digit EBITDA margin, plans to break even in the current fiscal year after becoming EBITDA-positive in FY25, according to Executive Chairman Dheeraj Hinduja. “Switch India, our company’s EV subsidiary, ended FY25 on a high note with double-digit EBITDA in Q4 FY25 and EBITDA breakeven for FY25,” Hinduja stated.
As a result of a general strong push from a variety of customers regarding EV orders, Ashok Leyland CFO Balaji claims that the company has launched eight new products in FY25, including EV and alternative fuel options.
In the heavy electric truck category, company representatives confirmed that they received large orders for 180 BOSS 90-litre battery electric vehicles and AVTR 55-tonne battery electric vehicles. The company also showcased a battery-electric terminal tractor that is currently on its way to commercial production.
“Ashok Leyland continues to invest in EVs and alternate fuel technologies, with new product launches in the light commercial vehicle (LCV) segment through its Saathi and Dost brands,” Hinduja shared plans for future investments.
After two interim dividends totalling 625%, or ₹6.25 per share, for FY25, Ashok Leyland authorised a one-to-one bonus share issue, citing the overall positive outlook and strong reserves.
Regarding the company’s future roadmap for alternative fuels, officials stated that they are concentrating on battery electric and liquefied natural gas (LNG), with long-term hydrogen-powered solutions also on the company’s radar.
Ashok Leyland’s managing director and CEO, Shenu Aggarwal, added that battery-powered EVs and LNG trucks will be the first vehicles on the path to net zero, with the development of hydrogen infrastructure and operational viability coming later. He stated, “At this time, we think that LNG and electric batteries will be adopted a little bit faster than hydrogen.”
“FY25 has been another landmark year for us,” Aggarwal said about the overall performance. In terms of revenue, profitability, and EBITDA, we have broken all previous records. The strength of our operations is demonstrated by our strong cash generation and margin expansion. Additionally, it gives us great satisfaction to reach our mid-teen EBITDA target in Q4, he added
With a cash surplus of Rs. 4,242 Cr at the end of the year, the company is in a very good financial position. Aggarwal said.
He went on to say that the company’s strong performance has provided us with more incentive to improve our product and technology capabilities and deliver the greatest possible customer experience. “We are still in the process of premiumization, with a focus on giving our customers exceptional value. We are more confident than ever that we can grow our market share and further increase our price realisation. Aggarwal said.
