Staff Writer
Chennai: Switch Mobility, the electric vehicle (EV) subsidiary of Ashok Leyland, has marked a major financial milestone by achieving a double-digit EBITDA margin in the fourth quarter of fiscal year 2025 (Q4 FY25) and attaining EBITDA break-even for the entire financial year. This development was announced by Executive Chairman Dheeraj Hinduja during a media interaction on Friday, signaling a strong endorsement of the company’s EV strategy and future readiness.
Hinduja underscored the success of Switch Mobility, stating, “Switch India, the EV subsidiary of our company, ended FY25 on a strong note, delivering double-digit EBITDA in Q4 FY25 and EBITDA break-even for FY25.” He attributed this turnaround to the division’s strategic execution and robust market positioning. Backing this achievement is a healthy order book exceeding 1,800 electric buses, including confirmed export orders by the third quarter of FY25, which highlights increasing demand and confidence in the company’s EV offerings.
Parent company Ashok Leyland, the Indian flagship of the Hinduja Group, also reported record-breaking performance for the fiscal year. FY25 saw the company deliver its highest-ever quarterly and annual revenue, EBITDA, and profit after tax (PAT), cementing its leadership in the commercial vehicle space. Its international operations witnessed a notable upswing, with exports registering a 29 percent volume growth, contributing significantly to the overall performance.
“The company ended the financial year with a strong cash position, net of dividend payouts, capital expenditure, and investments in group companies,” said Hinduja. This reflects Ashok Leyland’s resilience and financial discipline in the face of macroeconomic and market challenges.
In light of the stellar financial results, the board of Ashok Leyland approved a one-to-one bonus share issue. This follows the distribution of two interim dividends during FY25, totaling 625 percent or ₹6.25 per share. Hinduja emphasized that the latest quarterly performance marked the fourth consecutive quarter of double-digit EBITDA margins, reaffirming the company’s commitment to profitable growth.
Ashok Leyland has been strategically investing in the EV space and alternative fuel technologies, especially within the light commercial vehicle (LCV) segment under the Saathi and Dost brands. “These record performances reflect the resilience of our business and our customers’ trust in us,” said Hinduja, highlighting that profitability has not come at the cost of innovation or sustainability.
Reinforcing its commitment to environmental and social responsibility, the company made significant strides on its ESG front during FY25. Ashok Leyland was ranked first globally in the Heavy Machinery and Trucks category by leading ESG ratings provider Sustainalytics. Renewable energy usage in the company’s operations increased substantially to 69 percent, up from 61 percent the previous year, in alignment with its RE100 commitment. “It is extremely satisfying that our record-high financials are being achieved alongside substantial progress on our ESG goals,” Hinduja noted.
Looking forward, the company remains bullish about its growth prospects. “The milestone achieved during FY25 has boosted the company’s confidence in its ability to achieve its mid-term goals, and we are confident of venturing ahead in the years to come,” he said.
Switch Mobility is poised for further growth, with volumes expected to triple in the upcoming financial year, driven by an order backlog of approximately 1,300 electric buses. The company currently manufactures EVs in facilities located in Chennai, India, and the United Kingdom. In India, it has already launched the EiV 12 and double-decker EiV 22 electric buses and is preparing to unveil a new low-floor electric bus tailored for urban commuting, based on a brand-new platform.
In the electric light commercial vehicle space, Switch currently offers the IeV4 and IeV3 models. Plans are underway to introduce additional models to broaden the portfolio. A senior company official confirmed that with the current order book of over 1,500 buses and new launches in the pipeline, Switch is well-positioned to not only maintain but improve its profitability in the coming year. “We are launching new models in our bus portfolio as well. So, we are looking for break-even this financial year, and with the restructuring we have done, that is very much possible,” the official added.
On the LCV front, Managing Director and CEO Shenu Agarwal expressed confidence in the segment’s growth potential. “We see huge headroom in expanding our LCV business. Currently, we are restricted to 2-4 tonnage vehicles, which constitute about 50 percent of the overall LCV market. Our plan is to expand our product portfolio to cover 80 percent of this segment,” Agarwal said. He also noted that significant R&D efforts are being made to develop a winning LCV product that could help Ashok Leyland capture a 30 percent share in this category.
Ashok Leyland’s acquisition of Switch Mobility in 2020 from UK-based Optare Plc marked a pivotal move to expand its EV footprint. With a growing product range, expanding manufacturing capabilities, and a robust order pipeline, the company is setting the stage for rapid growth in FY26 and beyond.
The company continues to diversify its clean mobility initiatives, investing in alternative fuel technologies, including LNG and hydrogen-powered vehicles, in addition to electric mobility. Notably, the company has introduced 55-ton electric tractor-trailers to cater to heavy-duty transportation needs. For FY26, Ashok Leyland has earmarked ₹1,000 crore in capital expenditure, maintaining the same level of investment as the previous year, to support innovation, technology development, and an enhanced customer experience.
With favorable macroeconomic indicators such as a positive monsoon forecast, increased government capital expenditure, and a rebound in freight movement, the company expects further acceleration in demand. A recovery in the bus segment, driven by pent-up demand, is also anticipated to significantly boost sales.
Ashok Leyland is also expanding its presence in the intermediate commercial vehicle (ICV) and tractor-trailer segments, which have demonstrated robust growth. A nationwide expansion of the dealer network is in progress to support this next phase of growth. Ranked among the world’s top 20 commercial vehicle manufacturers, Ashok Leyland is now aiming to break into the global top 10.
Reinforcing its commitment to shareholder value, the company’s board reiterated its confidence in Ashok Leyland’s long-term strategy by approving the one-for-one bonus share issue, aligning with its ongoing trajectory of profitable growth and financial strength.