A leading Indian commercial vehicle manufacturer, known especially for its buses and trucks, has secured significant new orders. This article details a major order worth Rs. 184 crore received from a southern state transport corporation. The contract involves supplying over 500 modern, BSVI-compliant diesel buses, with deliveries scheduled throughout the second half of 2025.
Ashok Leyland Limited’s stock, with a market capitalisation of Rs. 69,437 crores, rose to Rs. 238.15, hitting a high of up to 0.86 percent from its previous closing price of Rs. 236.11. Furthermore, the stock over the past year has given a return of 13.8 percent.
Order details
Ashok Leyland has secured an order from the Tamil Nadu State Transport Corporation to supply 543 units of BSVI diesel chassis and fully built buses. The contract, valued at approximately Rs. 183.80 crore, was awarded through a standard tender process. The execution period for the contract is from June 2025 to December 2025.
Further Updates
Ashok Leyland has disclosed that its UK subsidiary, Optare Plc., will utilise an earlier announced investment of GBP 45 million (approximately Rs. 500 crore) for various strategic purposes. These include loan repayment, investments in subsidiaries, acquisition of shares in Switch Mobility Ltd., employee-related payments for reorganisation, and capital expenditure.
Also read: Financially strong stock jumps after Morgan Stanley, SBI, and other buy stake in the Co.
Segment performance
Ashok Leyland’s MHCV segment saw a 4 percent YoY rise in Q4 FY25 volumes to 36,053 units, driven by steady truck and bus sales. However, FY25 volumes dipped 1 percent due to weaker truck sales, while bus volumes grew 18 percent. The company maintained a 30.9 percent market share and expanded its network with 108 new touchpoints.
LCV volumes fell 2 percent YoY in Q4, with FY25 sales at 65,049 units and a slight market share decline to 18.6 percent. Export volumes surged 52 percent in Q4 and 29 percent for FY25, backed by localization in ASEAN. Non-CV businesses showed growth in engines and spares, while defense remained flat but with strong future prospects.
Financial highlight
The company reported a strong Q4FY25 performance with revenue rising to Rs. 14,696 crore, marking a 22.5 percent QoQ growth from Rs. 11,995 crore and a 9 percent YoY increase from Rs. 13,542 crore. This reflects a robust demand environment and improved operational scale. Over the past three years, revenue has grown at a 23 percent CAGR.
Net profit surged to Rs. 1,246 crore in Q4FY25, up 33.4 percent YoY from Rs. 934 crore and 52 percent QoQ from Rs. 820 crore. This sharp rise in profitability is backed by better margins and efficiency gains. The company’s 3-year profit CAGR stands at an impressive 190 percent, with ROE growing at a 25 percent CAGR, underscoring sustained value creation.
Written By Fazal Ul Vahab C H
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