Chennai: In a significant boost to its domestic operations, Ashok Leyland Ltd., the flagship company of the Hinduja Group, has secured a major order from the Tamil Nadu State Transport Corporation (TNSTC) for the supply of 543 diesel buses. The order, valued at approximately ₹183.80 crore, was announced through a stock exchange filing on Tuesday and is expected to be executed between June and December 2025.
The order comprises Bharat Stage VI (BSVI) diesel chassis and fully built buses and was awarded through a standard government tender process. According to the company, the transaction does not constitute a related-party transaction, and there is no interest held by the promoter group or related entities in the Tamil Nadu State Transport Corporation. The commercial terms of the contract are standard, with no adverse conditions associated with the deal.
This development marks a timely win for Ashok Leyland, which experienced a slight dip in vehicle volumes in fiscal year 2025. The company reported domestic commercial vehicle sales of 1,79,842 units in FY25, representing a 2% decline compared to 1,82,700 units sold in FY24. Despite the volume drop, the company posted its highest-ever net profit, underscoring strong financial performance driven by operational efficiency and improved margins.
Ashok Leyland reported a net profit of ₹3,303 crore for the fiscal year, a 25% increase from the previous year, on the back of modest revenue growth of 1% to ₹38,753 crore. Operational profitability, measured by earnings before interest, taxes, depreciation, and amortisation (EBITDA), rose by 7% year-on-year to a record ₹4,931 crore. This translated into a margin improvement of 70 basis points, bringing the EBITDA margin to 12.7%.
One of the most notable milestones achieved during the year was the company’s transformation to a net debt-free status. As of March 31, 2025, Ashok Leyland reported net cash reserves of ₹4,242 crore, compared to a net debt of ₹89 crore at the end of the previous fiscal year.
Commenting on the company’s performance and outlook during the FY25 earnings announcement on May 23, Shenu Agarwal, Managing Director and CEO of Ashok Leyland, said, “This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are now more confident than ever in our ability to gain market share and further improve our price realisation.”
Founded in 1948 and headquartered in Chennai, Ashok Leyland is among India’s leading commercial vehicle manufacturers. It has a strong presence in both domestic and international markets, serving over 50 countries. The company produces a wide range of commercial vehicles including trucks, buses, light vehicles, and defense equipment. Known for its innovation in mobility solutions, Ashok Leyland is also investing heavily in alternative fuels, electric vehicles, and other clean mobility technologies, in line with India’s broader sustainability goals.
The latest order from Tamil Nadu not only reinforces the company’s stronghold in the public transport segment but also highlights continued government trust in Ashok Leyland’s technology and manufacturing capabilities. The deployment of these 543 BSVI-compliant buses is expected to enhance the state’s public transportation infrastructure, providing cleaner and more efficient mobility solutions.
BSVI, or Bharat Stage VI, is India’s current vehicular emission standard, equivalent to the Euro VI norms. Introduced in April 2020, BSVI regulations mandate significant reductions in harmful emissions such as nitrogen oxides (NOx), particulate matter (PM), and hydrocarbons. Vehicles adhering to BSVI norms are equipped with advanced engine technologies and require cleaner fuels, making them more environmentally friendly.
As Ashok Leyland continues to strengthen its domestic operations and deepen its focus on sustainable mobility, the new order from Tamil Nadu is seen as a reaffirmation of its leadership in the Indian commercial vehicle industry.