Ashok Leyland Limited, the flagship company of the Hinduja Group, today announced that its Board of Directors has approved a significant equity investment of up to ₹305.7 crore in two wholly owned subsidiaries. This strategic move reinforces the company’s twin-pronged approach: enhancing its traditional bus manufacturing capabilities and rapidly scaling electric mobility services.
Investment Breakdown
- Vishwa Buses and Coaches Ltd (VBCL): Up to ₹5.70 crore, aimed at capacity expansion and infrastructure development in bus body and coach-building operations. VBCL’s revenues grew from ₹99.94 crore (FY 2022–23) to ₹295.35 crore in FY 2024–25.
- OHM Global Mobility Pvt Ltd (OHM): A substantial infusion of up to ₹300 crore, targeted at expanding its pioneering “e-Mobility as a Service” (EMaaS) model, offering pay-per-use electric buses and trucks. OHM’s revenues surged from a modest ₹1.72 crore in FY 2023–24 to ₹50.37 crore in FY 2024–25.
Deployment & Timeline
These equity infusions will be executed in multiple tranches, with the goal of completing:
- VBCL investment by 31 March 2026
- OHM investment by 31 March 2027
Both investments are subject to regulatory compliance and necessary filings.
Financial & Market Context
In its Q1 FY26 results, Ashok Leyland reported a 13% rise in net profit to ₹594 crore, recording its highest-ever quarterly sales of 44,238 commercial vehicle units and revenue reaching a record ₹8,725 crore. This underscores the financial strength supporting its growth strategy across both traditional and electric mobility domains.
Governance & Compliance
The transactions constitute related-party investments under SEBI’s Listing Obligations and Disclosure Requirements (LODR). Ashok Leyland affirms that these are conducted at arm’s length, with no additional promoter interest beyond existing shareholding. Disclosures have been made to both NSE and BSE in compliance with Regulation 30 of SEBI (LODR) and related guidelines. Strategic Outlook
This capital infusion sharpens Ashok Leyland’s strategic focus on:
- Bolstering core competencies in conventional bus manufacturing through VBCL.
- Advancing leadership in electric mobility by scaling OHM’s innovative service model.
With this dual investment, Ashok Leyland is well-positioned to emerge as a dominant force in both the conventional and EV-enabled commercial vehicle spaces.
