For the fourth quarter and the entire fiscal year FY25, Ashok Leyland reported its best-ever financial and operational results. With investments in innovation and alternative propulsion technologies, the company not only achieved record sales and profitability but also established solid foundations for future growth, all thanks to a clear strategic vision and resilient execution across all divisions.
Robust Operational and Financial Metrics
At Rs 1,791 crore in Q4 FY25, Ashok Leyland had its highest-ever EBITDA margin of 15%, up from 14.1% (Rs 1,592 crore) during the same period the previous year. Profit After Tax jumped drastically by 38.4% to Rs. 1,246 crore, while Profit Before Tax was Rs. 1,671 crore, a 13.6% increase year over year. The company’s liquidity position was strengthened by the Rs 3,284 crore in cash generated during the quarter.
The company reported an EBITDA of Rs. 4,931 crore (12.7%) for the entire year, compared to Rs. 4,607 crore (12.0%) in FY24. Crucially, Ashok Leyland concluded the fiscal year with a net cash surplus of Rs. 4,242 crore, a notable improvement from the previous year’s net debt of Rs. 89 crore, highlighting cash efficiency and operational discipline.
At 195,093 units, the company’s total commercial vehicle volumes for FY25 came very close to reaching a record high. At 21,249 units, the MHCV bus segment saw its highest-ever yearly volume. Additionally, exports experienced a robust increase, rising 29% annually to 15,255 units. With the help of the company’s subsidiaries, the Power Solutions and Defence business verticals made significant contributions to the overall performance.
Future-Ready: Investing in Innovation and Alternative Propulsion
Ashok Leyland keeps adapting its approach to new developments in the mobility industry. With major projects in LNG, hydrogen, and electric mobility (headed by Switch Mobility) well underway, the company’s alternative propulsion portfolio is solidly taking shape. These advancements mark a clear shift towards long-term preparedness and sustainable transportation options.
Confidence in Growth Trajectory
“We are extremely proud to have achieved these record-breaking numbers,” said Dheeraj Hinduja, Chairman of Ashok Leyland. “It displays the tenacity of our company and the faith that our clients have in us. The Board has authorised a 1:1 bonus share issue in light of the company’s impressive financial results over the previous three years. We are in a strong position for long-term, profitable growth because of our unwavering focus on innovation, client satisfaction, and international operations.”
Additionally, Ashok Leyland’s MD and CEO, Shenu Agarwal, stated, “FY25 has been another historic year for us. 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. It is really rewarding that we were able to reach our mid-teen EBITDA target in Q4.” “We have a substantial cash surplus of Rs. 4,242 crore, which puts us in a stronger position than ever to improve our technological and product capabilities and provide exceptional customer service. We are still committed to increasing market share and premiumisation while bolstering price realisation.”