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Ashok Leyland Reports 38.4% Profit Surge, Announces Bonus Share Issue

The truck-maker's strong Q4 FY25 performance, driven by margin expansion and operational efficiency, has brokerages divided on its valuation outlook.

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Overview

  • Ashok Leyland posted a 38.4% year-on-year increase in standalone net profit to Rs 1,246 crore for Q4 FY25, with revenue rising 5.7% to Rs 11,907 crore.
  • The company's Ebitda margin expanded by 100 basis points to 15%, exceeding analyst estimates and driven by improved cost controls and a richer product mix.
  • Ashok Leyland's board approved a 1:1 bonus issue of equity shares and recommended a dividend of Rs 4.25 per share for the financial year 2025.
  • Brokerages offered mixed ratings, with Nomura and Citi maintaining 'buy' recommendations citing growth potential, while Macquarie remained cautious with a 'neutral' rating.
  • The company is advancing its electric mobility initiatives through subsidiaries Switch Mobility and Ohm Mobility, with plans to scale operations in FY26.