Ashok Leyland Reports 38% YoY Growth in Q4 Net Profit

Ashok Leyland, the flagship Indian business of Hinduja Group and one of India's leading commercial vehicle manufacturers, has registered strong financial results for the fourth quarter and the entire fiscal year ended March 31, 2025. The company posted strong growth in standalone net profit for Q4 FY25, in addition to revenue from operations. These results are as the company points to its highest-ever quarterly and yearly revenues and EBITDA.

Performance on Profit and Revenue

The standalone net profit of Ashok Leyland in the fourth quarter of FY25 surged 38% year-on-year to ₹1,246 crore, as against ₹900 crore in the same quarter of the last financial year. Revenue from operations during the same quarter increased by 6% to ₹11,907 crore, from ₹11,267 crore in Q4 FY24. Sequentially, the profit after tax (PAT) increased by 63% from ₹762 crore in Q3 FY25, and revenue increased 26% from ₹9,479 crore in the quarter ended FY25.

Operational and Full Year Financials

The operational performance remained stable as per the company. Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), or operating profit, in Q4 FY25 increased by 12.5% to ₹1,791 crore from ₹1,592 crore in the corresponding quarter previous year. Another source reported this increase as 15%, with the figures remaining the same at ₹1,791 crore against ₹1,592 crore. The EBITDA margin grew by 90 basis points to 15.04% from 14.13%. Operating Profit Before Tax (PBT) for the quarter was **₹1,671 crore, a 14% growth compared to ₹1,471 crore in the previous year. Cash generated from operations in the quarter amounted to ₹3,284 crore.

For the fiscal year FY25, PAT grew by 26% to ₹3,303 crore, as against ₹2,618 crore in FY24. Revenues saw a marginal growth of 1%, at ₹38,753 crore against ₹38,367 crore in FY24. FY25 EBITDA was reported at 12.7%, amounting to ₹4,931 crore, against 12% or ₹4,607 crore in the previous year. The company concluded the financial year with a net cash position of ₹4,242 crore, a significant shift from a net debt of ₹89 crore at the end of FY24.

Business Segment Performance and Corporate Actions

Ashok Leyland's total commercial vehicle (CV) volumes in FY25 were 1,95,093 units, close to the all-time high of 1,97,366. Particularly, MHCV buses recorded their highest-ever volume at 21,249 units in the year. Export volume too was one of the highest in several years, up 29% at 15,255 units from 11,853 units in the last year. The Power Solutions and Defence Businesses too recorded good growth.

The board of the company has approved the issue of bonus equity shares in a 1:1 basis, that is, one bonus equity share of ₹1 each for one fully paid-up equity share of ₹1 held. Subject to the approval of the shareholders through postal ballot, the record date will be declared later. This bonus issue comes on the heels of two interim dividends announced for FY25 amounting to 625%, that is, ₹6.25 per share.

Management Outlook and Market Response

Dheeraj Hinduja, Chairman of Ashok Leyland, said that reaching these record figures is a matter of great pride, a testament to the strength of the business and customer confidence. He further added that the company is "well-positioned for sustained and profitable growth" because of its emphasis on innovation, customer delight, and push in international operations.

After the announcement of earnings in market hours, shares of Ashok Leyland declined 4% from the day's high to an intraday low of ₹235.14 on the NSE. However, the shares of the company finally closed 0.21% down at ₹238.25, lagging the BSE200 index for the day.

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