Ashok Leyland secures Rs 700cr defence orders to strengthen Indian Army’s mobility

Ashok Leyland, the flagship company of the Hinduja Group and the largest supplier of logistics vehicles to the Indian Army, has announced major contract wins for its defence mobility solutions. The company has secured multiple orders worth over ₹700 crore, reinforcing its leadership in military transport and logistics.

These orders include a range of high-performance military vehicles designed for troop transport, logistics, and specialised mobility solutions under the Close-in Weapon Systems (CIWS) program. The deal further cements Ashok Leyland Defence as a key player in India‘s efforts to enhance military self-sufficiency through indigenous manufacturing.

Diverse Military Fleet to Enhance Armed Forces’ Capabilities

Under these contracts, Ashok Leyland Defence will supply several specialised vehicles, including the Stallion 4×4 and Stallion 6×6, which are multi-purpose logistics trucks known for their rugged off-road capabilities. The company will also deliver the Short Chassis Bus, designed for secure and efficient troop transportation, along with the Mobility System Travelling Platform, which is engineered to support strategic mobility needs in challenging terrains.

These vehicles are equipped with advanced mobility and durability features, ensuring superior performance in high-risk operational environments. Their ability to navigate extreme terrains makes them essential assets for military missions across the country.

Company Leadership Highlights Strategic Growth in Defence Sector

Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, emphasised the company’s long-standing commitment to the defence sector. He stated that securing these new orders reinforces the company’s market leadership and aligns with its broader strategy to deliver cutting-edge defence mobility solutions for the armed forces.

Amandeep Singh, President of Ashok Leyland Defence, highlighted the company’s contribution to India’s Atmanirbhar Bharat initiative. He noted that Ashok Leyland remains dedicated to designing and manufacturing Indian Army vehicles domestically, strengthening national defence capabilities. Singh also underscored the versatility of the company’s vehicle platforms, which range from 4×4 to 12×12 configurations, incorporating modern defence-specific enhancements such as armouring.

He further stated that as the largest supplier of logistics vehicles to the Indian Army, Ashok Leyland takes immense pride in supporting the country’s armed forces. The company remains committed to delivering these orders on schedule while continuing to pursue a strong pipeline of future defence contracts.

Stock Market Reaction and Investment Outlook

While major contract wins typically boost investor sentiment, Ashok Leyland’s stock performance has shown short-term fluctuations. As of March 28, 2025, the company’s share price stood at ₹204.22, marking a 2.06% decline from the previous session. Over the past month, the stock has fallen by 10.13%, trading 20.59% below its 52-week high of ₹264.65, recorded in August 2024.

Despite this short-term dip, Ashok Leyland’s financials remain strong. The company reported a standalone profit of ₹7.63 billion in the quarter ending December 2024, exceeding market expectations. The 31.3% year-over-year growth was driven by a 33% rise in exports, which helped offset a 2.2% decline in domestic sales.

Analyst sentiment remains positive, with a 12-month target price of ₹253.08, indicating a potential upside of 23.90%. Out of 41 analysts covering the stock, the majority recommend a Buy. However, the stock is currently trading at 5.82 times its book value, and 30.1% of promoter holdings are pledged, which could introduce some risk factors.

Buy, Sell, or Hold?

Given Ashok Leyland’s robust financial performance, its leadership in defence mobility solutions, and the strategic importance of these new contracts, long-term growth prospects remain strong. However, the stock is expected to face short-term fluctuations, with technical indicators suggesting a possible 4.33% decline over the next three months. Investors holding the stock may consider maintaining their positions, while potential investors might look for price dips before entering.

Ashok Leyland’s Growing Role in India’s Defence Ecosystem

With a legacy of providing reliable Indian Army vehicles, Ashok Leyland continues to innovate in the field of defence mobility solutions. The company plays a pivotal role in equipping the armed forces with essential logistics and combat-ready vehicles that meet stringent operational requirements.

Beyond this ₹700 crore order, Ashok Leyland is actively expanding its defence portfolio, positioning itself as a trusted partner for military and paramilitary forces. As India prioritises indigenous defence manufacturing, the company is expected to play a critical role in shaping the future of military logistics.