Ashok Leyland gets ₹183.8 Cr diesel chassis and fully built buses order from TNSTC

Key Highlights:

• Ashok Leyland received an order worth ₹183.80 crore from Tamil Nadu State Transport Corporation.
• The order will be executed between June 2025 and December 2025 through a standard tender process.
• There are no adverse terms or related party connections involved in the contract.
• The announcement was officially made to the NSE and BSE.
• Ashok Leyland continues to strengthen its role in public transport with BSVI-compliant.

Ashok Leyland Limited has received a major order from the Tamil Nadu State Transport Corporation. The order includes 543 Bharat Stage VI (BSVI) diesel chassis and fully built buses. The total deal is worth around ₹183.80 crore.

Delivery Timeline

The buses will be delivered between June 2025 and December 2025. The order was given through a standard government tender process with usual commercial terms. There are no special or negative conditions involved in the deal.

No Conflict of Interest

Ashok Leyland confirmed that none of its promoters or related companies have any connection with the Tamil Nadu State Transport Corporation. So, this deal is not a related party transaction. The company shared the news with the National Stock Exchange (NSE) and BSE.

About Ashok Leyland

Ashok Leyland is one of India’s top commercial vehicle makers. It started in 1948 and is based in Chennai. The company is part of the Hinduja Group and produces trucks, buses, small vehicles, and even defence systems. It exports vehicles to more than 50 countries and focuses on innovation, including electric mobility and clean fuel technology.

The new order from Tamil Nadu shows that the government still trusts Ashok Leyland for building strong and reliable buses. These 543 BSVI buses will help improve public transport in the state, offering cleaner and better travel options for people. It also demonstrates that Ashok Leyland remains a key player in the bus manufacturing sector.

This order comes at a good time for Ashok Leyland. In FY25, the company saw a slight drop in vehicle sales, selling 1,79,842 commercial vehicles compared to 1,82,700 units in FY24, a 2% decline. However, the company still reported its highest-ever net profit due to better cost control and improved margins. This shows strong financial performance despite lower volumes.

Ashok Leyland ended the fiscal year on a strong note, reporting a net profit of ₹3,303 crore, a 25% rise from the previous year. This came even as revenue grew by just 1%, reaching ₹38,753 crore. The company also improved its operational performance, with EBITDA increasing by 7% to ₹4,931 crore. As a result, the EBITDA margin improved to 12.7%, up by 70 basis points from last year.

A major highlight of the year was Ashok Leyland becoming net debt-free. As of March 31, 2025, the company had ₹4,242 crore in net cash reserves, compared to a net debt of ₹89 crore at the end of the last financial year. This shows a strong financial condition and better management of costs and cash flow.

What is BSVI?

BSVI (Bharat Stage VI) is India’s clean emission standard, similar to Euro VI. It reduces harmful emissions from vehicles like nitrogen oxides, particulate matter, and hydrocarbons. Introduced in April 2020, BSVI vehicles use advanced engines and cleaner fuels to meet these strict rules.

Also Read: Ashok Leyland Sales Report May 2025: Sold 12,808 units; Report 4.82% Growth

CMV360 Says

This new order from the Tamil Nadu government is good news for both Ashok Leyland and the public. It shows that the state is serious about giving people better and cleaner buses to travel in. With BSVI technology, these buses will produce less pollution and offer a smoother ride. For daily commuters, this means more reliable and eco-friendly transport.