Ashok Leyland Accelerates: Record Q4 Profit, Bonus Issue Ignites Market Buzz

Ashok Leyland shares are in the spotlight after the commercial vehicle giant posted its highest-ever quarterly profit for Q4FY25, surging 38% year-on-year to ₹1,246 crore. The robust performance was fueled by strong revenue growth, operational efficiencies, and a deferred tax credit, marking a standout finish to the fiscal year.

 

Key Highlights:

 

Profit Soars: Net profit for Q4FY25 jumped to ₹1,246 crore from ₹900 crore a year ago, beating market estimates and reflecting resilient demand and cost controls.

 

Revenue Growth: Revenue from operations rose 6% year-on-year to ₹11,907 crore, driven by higher domestic sales and a remarkable 52% increase in exports for the quarter.

 

EBITDA Expansion: EBITDA climbed 12.5% to ₹1,791 crore, with margins improving to 15%, up from 14.1% last year, underscoring improved operational leverage.

 

Bonus Bonanza: The board approved a 1:1 bonus share issue, the first in 14 years, rewarding shareholders and signaling management’s confidence in future growth.

 

Dividend Payouts: Shareholders also benefited from two interim dividends in FY25, totaling ₹6.25 per share (625% of face value).

 

Strong Cash Flow: The company generated ₹3,284 crore in cash during the quarter, ending FY25 with a net cash position of ₹4,242 crore.

 

Industry Outlook: Management remains optimistic for FY26, citing pent-up demand in the bus segment, a rising average age of trucks (boosting replacement demand), and supportive macroeconomic factors. New e-bus models and battery innovations are also on the horizon.

 

Ashok Leyland’s record-breaking quarter, shareholder-friendly moves, and strategic growth plans have set the stage for continued momentum in the coming year.

 

Sources: Economic Times, Moneycontrol, Financial Express