Ashok Leyland Q2 net profit jumps 37%; EBITDA margin expands to 11.6%

Ashok Leyland, the flagship company of the Hinduja Group, reported robust financial performance for Q2FY25, driven by strong operational efficiency and improved market dynamics. The company posted a consolidated net profit of Rs 766.55 crore, marking a significant 37 per cent increase compared to Rs 550.65 crore in the same quarter last year. Consolidated total income rose to Rs 11,261.84 crore, up four point seven per cent year-on-year (YoY).

Consistent double-digit EBITDA growth continues
The heavy commercial vehicle manufacturer achieved an EBITDA of Rs 1,017 crore, with an EBITDA margin of eleven point six per cent. This marks the seventh consecutive quarter of double-digit EBITDA, underlining the company’s strong focus on cost management and premium product offerings.

Maintains strong market share; declares interim dividend
Ashok Leyland held steady with a market share exceeding 31 per cent in the domestic medium and heavy commercial vehicle (M&HCV) segment. Reflecting confidence in its financial health, the Board approved an interim dividend of Rs 2 per share. The company’s strong cash flow and profitability are expected to sustain dividend payouts in the coming quarters.

The company reported a fourteen per cent rise in international sales, selling 3,310 units in key markets such as SAARC, the Middle East, Africa, and Asia. Ashok Leyland expanded its offerings across Tipper, Bus, Haulage, and Light Commercial Vehicle segments, further strengthening its product portfolio. Additionally, Switch Mobility, its electric vehicle subsidiary, secured a promising order book nearing two thousand buses, reflecting the growing demand for sustainable transport solutions.

Outlook positive on rising demand and diversification
Ashok Leyland’s diversified business segments, including defence, power solutions, and aftermarket services, continued to perform well. The company aims to leverage its technological capabilities and cost leadership to capture new market opportunities. With investments in alternative fuel products and a strong distribution network, the outlook for the remainder of FY25 remains optimistic.

Shenu Agarwal, MD & CEO, Ashok Leyland, said, “Our focus on profitability continues. We are happy that we could improve our profitability by focusing on premiumization of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service. Our PAT for Q2FY25 is an all-time high. Our EBITDA margins have improved both sequentially and on YaY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term.”