The company shares adjusted 50% on the bonus record date, and plans ₹1,000 crore capex for EVs and alternate fuels, reflecting confidence in long-term growth and innovation.The shares of a multinational automotive manufacturer plummeted 50 percent in today’s trading session, as today is the record date for the issue of bonus shares to the eligible shareholders.
With a market capitalization of Rs 72,679.05 crore, the shares of Ashok Leyland Ltd were trading at Rs 123.75 per share, increasing around 1.36 percent as compared to the previous closing of Rs 125.45 apiece.
Ashok Leyland’s shares dropped 50% on July 16, 2025, due to the 1:1 bonus issue record date. The sharp decline reflects the stock adjusting for the bonus allotment. Approved on July 7, the bonus shares will be allotted on July 17 and tradable from July 18. This step aligns with SEBI norms and aims to boost liquidity and investor confidence.
Looking forward to the company’s financial performance, revenue increased by 9 percent from Rs 13,542 crore in Q4FY24 to Rs 14,696 crore in Q4FY25. Furthermore, during the same time frame, the net profit increased by 33 percent, from Rs 934 crore to Rs 1,246 crore.
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For FY26, the company has outlined a capex of approximately ₹1,000 crore, focusing on alternate fuels, EV technology, and an EV excellence centre. Additional group investments range from ₹500–750 crore, including ₹100–200 crore in Switch India and ₹300–400 crore in OHM, reinforcing its long-term commitment to electric mobility.
Management remains confident and optimistic, citing structural improvements, cost leadership, and resilience. With no major headwinds, growth is expected from exports, defense, EVs, and subsidiaries. Switch India is EBITDA positive, aiming for PAT gains. Value unlocking, including HLF listing, is planned to better capture the subsidiary’s worth in Ashok Leyland’s market valuation.
Ashok Leyland Limited is an India-based company that is engaged in automobile manufacturing. The main activities of the Company relate to manufacturing, sales, vehicle and housing finance, IT services, and services related to a wide range of commercial vehicles.
Written by Abhishek Singh
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