Staff Writer
Chennai: In a significant boost to its domestic business, Ashok Leyland Ltd., the flagship company of the Hinduja Group, has secured an order worth ₹183.80 crore from the Tamil Nadu State Transport Corporation (TNSTC) for the supply of 543 diesel buses. The company announced the development through a stock exchange filing on Tuesday.
The order, awarded via a government tender process, comprises Bharat Stage VI (BSVI) diesel chassis and fully built buses. The delivery is scheduled to take place between June and December 2025. Ashok Leyland clarified that the transaction is not a related-party deal and that neither the promoter group nor related entities hold any interest in TNSTC. The commercial terms are standard, with no adverse conditions attached.
This contract comes at a strategic time for Ashok Leyland, following a slight dip in vehicle sales during FY25. The company reported domestic commercial vehicle sales of 1,79,842 units, down 2% from 1,82,700 units in FY24. Despite the decline, Ashok Leyland posted its highest-ever net profit, underscoring strong operational efficiency and improved margins.
For the financial year ended March 31, 2025, the company reported a net profit of ₹3,303 crore, marking a 25% year-on-year growth. Revenue rose modestly by 1% to ₹38,753 crore, while EBITDA grew by 7% to ₹4,931 crore. The EBITDA margin improved by 70 basis points to 12.7%.
A notable highlight of FY25 was Ashok Leyland’s transformation to a net debt-free status. As of March 31, the company held net cash reserves of ₹4,242 crore, a significant turnaround from a net debt of ₹89 crore the previous year.
Commenting on the results during the 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 a leading player in India’s commercial vehicle sector with a presence in over 50 countries. The company manufactures a wide range of vehicles, including trucks, buses, light commercial vehicles, and defence equipment. It is also investing heavily in alternative fuel technologies and electric mobility solutions in alignment with India’s sustainability objectives.
The latest order from Tamil Nadu is seen as a reaffirmation of Ashok Leyland’s leadership in the public transport segment. The deployment of the 543 BSVI-compliant buses is expected to significantly enhance the state’s public transport infrastructure with cleaner and more efficient vehicles.
BSVI, India’s current emission standard introduced in April 2020, mandates stringent reductions in pollutants such as nitrogen oxides (NOx), particulate matter (PM), and hydrocarbons. BSVI-compliant vehicles feature advanced engine technologies and operate on cleaner fuels, making them more environmentally sustainable.
With this new order, Ashok Leyland continues to solidify its market presence while advancing towards a greener, more efficient transportation future.
