Ashok Leyland's electric vehicle (EV) unit has reported a significant profit of ₹820 crore for the second quarter of the financial year 2025-26 (Q2 FY26), marking its first profitable quarter. This achievement aligns Ashok Leyland with its listed peer Olectra Greentech, making it only the second EV manufacturer in India to report profitability. The company's chief financial officer, K.M. Balaji, highlighted that the profitability was largely due to optimized production techniques and the closure of its UK plant earlier this year, which helped reduce costs. Notably, the EV unit's strong performance contrasts with the broader market, as Ashok Leyland's shares fell by 2.6% amid a 1.2% rise in the Nifty Auto index.

In the July-September quarter, Ashok Leyland also reported a 13% increase in revenue, reaching ₹12,577 crore, alongside a 7% year-on-year growth in profit after tax. The management attributed this financial growth to the performance of its non-vehicular segments, including spares and defense. Shenu Agarwal, the managing director and CEO, mentioned that the company has transitioned its production base to the United Arab Emirates (UAE) to better serve the European market. The move comes as the company prepares to capitalize on a healthier order book for its subsidiary, Switch Mobility, which manufactures electric buses and trucks.

The success of Ashok Leyland's EV unit reflects a broader trend in the Indian automotive industry, where most manufacturers are still striving to achieve positive earnings before interest, tax, depreciation, and amortization (EBITDA) before reaching net profitability. With the second half of the financial year traditionally stronger for commercial vehicles, analysts predict that Ashok Leyland will continue to see enhanced revenue and profitability. Additionally, the company has committed to investing ₹5,000 crore to establish a local battery pack and cell manufacturing facility, further bolstering its commitment to the EV sector and local production capabilities.