Ashok Leyland’s EV subsidiary, Switch Mobility, plans to achieve break-even in the current fiscal year after turning EBITDA-positive in FY25, said a top company official. Switch Mobility closed Q4 FY25 with a strong double-digit EBITDA margin. Ashok Leyland acquired Switch Mobility in 2020 from the UK-based Optare Plc.
The EV arm currently has an order book of over 1,800 electric buses, which will support its robust business plans, said Dheeraj Hinduja, Chairman of Ashok Leyland, during the company’s Q4 earnings call.
Switch Mobility’s product portfolio includes the EiV 12, EiV 22, and IeV 4, with manufacturing units in Chennai, Tamil Nadu, and the UK. The company aims to strengthen its position in the electric commercial vehicle market with multiple launches lined up for FY26.
On Friday, Ashok Leyland, the Indian flagship of the Hinduja Group, reported its highest-ever quarterly and annual revenue, EBITDA, and profit after tax (PAT) for FY25. The company posted a revenue of ₹38,753 crore for the fiscal year, with exports registering a 29 per cent growth.
The company also ended FY25 with a strong cash position, after accounting for dividends, capex, and investments in group companies. Leveraging this surplus, Ashok Leyland plans to infuse capital into Switch Mobility, Hinduja Leyland Finance, and other group entities based on evolving market needs, said Shenu Agarwal, Managing Director & CEO, Ashok Leyland.
Ashok Leyland’s Future Outlook
The commercial vehicle giant will continue investing in alternative fuels, including LNG, hydrogen, and EVs—such as its 55-ton electric tractor-trailers. For FY26, the company has planned a capex of ₹1,000 crore, in line with the previous fiscal year.
The company informed that it will use its strong cash reserves to drive growth in product innovation, advanced technologies, and enhanced customer experience.
The top management remains optimistic about the current fiscal, citing favourable macroeconomic indicators such as a positive monsoon outlook, government capex push, and a recovery in freight movement. Additionally, pent-up demand in the bus segment is expected to further boost sales.
Ambitious Targets Ahead
Currently positioned among the world’s top 20 commercial vehicle manufacturers, Ashok Leyland has set its sights on breaking into the global top 10, according to company officials.
The company is also focused on expanding its footprint in the tractor-trailer and intermediate commercial vehicle (ICV) segments, which have shown strong growth. A Pan-India dealer network expansion is underway to support these efforts.
To reward shareholders, the Board has approved a 1:1 bonus share issue, citing strong and consistent financial performance.
