Ashok Leyland Expects Switch India to Report Net Profit, 3X Bus Volume Growth in FY26

Ashok Leyland Ltd has projected its electric vehicle subsidiary Switch Mobility to report net profit for the first time for its India business during the financial year 2026, with bus volumes growing threefold. The automaker also expects Switch to post a revenue of Rs 900-1,000 crore in the current financial year.

Switch Mobility’s India business is already EBITDA positive. “We intend to run the business in the next couple of years with tighter cost controls and enhanced synergies with Ashok Leyland to bring Switch India business to PAT breakeven within the next four to six quarters,” Ashok Leyland MD & CEO Shenu Agarwal said.

Switch Mobility marked Ashok Leyland’s foray into electric buses and light commercial vehicles. The company has manufacturing bases in Chennai and the UK. However, the company is considering to shut down its manufacturing and assembly operations at the Sherburn facility in the UK amid slower-than-expected transition to EVs in the public transport sector there.

In India, Switch Mobility has rolled out two electric buses - EiV 12 and EiV 22 Double Decker, and has  plans to launch one low-floor electric bus for city rides that is being developed on a new platform. On the electric LCV side, the company has two offerings – IeV4 and IeV3. 

Ashok Leyland Chief Financial Officer KM Balaji said Switch Mobility India’s revenue in the current financial year 2025 is expected to be in the range of Rs 900-1,000 crore with total bus volumes likely to be around 450 units, while its LCV volume could be more than 1,000 units.

The management noted that Switch Mobility's volumes are expected to treble in the next financial year on the back of a strong order backlog of 1,300 buses.

The company expects the electric bus market in India to remain strong and see multifold growth over the next couple of years on the back of demand from government and private players. Going forward, the management noted that Switch India will only do outright sales of its buses, and not through Gross Cost Contract (GCC) model.

Meanwhile, the management noted that the loss at Switch UK business for the current financial year is estimated to be in the range of GBP 20-25 million and has a net debt of around GBP 80 million, which is due for repayment by financial year 2029.