Mid-single-digit domestic M&HCV industry growth in FY26
Management expects mid-single-digit growth for M&HCV and slightly higher for LCV, with H2 likely stronger due to low base and improving macro.
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Ashok Leyland · forward-looking guidance across the available source record.
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What management said would happen.
growth
Double-digit revenue growth in defense for FY26
Strong order book (₹1,000+ crore) and tender pipeline (₹2,000+ crore) support double-digit defense revenue growth for the full year.
Switch India EBITDA-positive in FY26
Switch India achieved PBT breakeven in Q1; management targets EBITDA-positive status for the full year.
Fully-built bus capacity expansion to 1,650 units/month
Current capacity of 950 buses/month to be expanded to 1,650, including the new Lucknow plant operational from Q3 FY26.
Industry growth to remain strong in FY27
Management expects the replacement cycle triggered by GST to sustain, with bulk buyers now joining retail buyers. FY27 should see good volume growth, though H1 may have a low base and H2 a high base.
Price hikes of 60+ bps to offset commodity inflation
Management has started reducing discounts to recover ~60 bps of commodity cost impact, with further price increases possible if pressure persists.
Switch India to be free cash flow positive by FY27
Switch India (EV subsidiary) is on track to achieve free cash flow positivity by FY27, with current order book of 1,350 units and positive EBITDA/PAT.
No major capacity capex in next 2-3 years
Management sees no need for significant capacity expansion; only niche investments of ₹50-100 crore may be required.
Capex of ₹750-1,000 crore for FY27
Capital expenditure for FY27 is planned at ₹750-1,000 crore, focused on new products and alternate powertrain technologies.
Price hike of 1-1.5% effective April 1
A price increase of 1-1.5% was taken from April 1, 2026, to partially offset commodity cost inflation.
Battery pack production to start in Q2 FY27
Construction of the battery pack facility at Pille Pakam will begin in 8-10 weeks, with production start targeted for Q2 FY27.
Defense business to continue 20% growth
Management expects defense revenue to maintain ~20% growth trajectory, supported by a strong order book and pipeline.