Ashok Leyland Limited’s Board of Directors has approved significant capital infusions into its international and domestic subsidiary units, signaling a push to strengthen its electric vehicle (EV) capabilities and expand financing options for commercial vehicle customers.

The board authorized an investment of up to GBP 25 million (approximately ₹325 crore) in Optare Plc, a UK-based subsidiary, and up to ₹500 crore in Hinduja Housing Finance Limited (HHFL), a step-down subsidiary. Both transactions are structured as equity investments and will be executed in one or more tranches, subject to requisite approvals.

Strategic Rationale

The investment in Optare Plc is directed towards loan repayment and other business requirements. Optare serves as the holding company for Ashok Leyland’s EV initiatives, including Switch Mobility Limited and Switch Mobility Automotive Limited.

The infusion into HHFL aims to generate funds for the NBFC’s business growth. The filing notes this could indirectly benefit Ashok Leyland by enabling its material subsidiary, Hinduja Leyland Finance Limited (HLFL), to lend more to customers for commercial vehicle purchases. Management stated that HHFL is expected to deliver strong growth with stable asset quality, making the investment value accretive.

Investment Details

Both investments are classified as related-party transactions. Hinduja Automotive Limited, the promoter of Ashok Leyland, holds a 6.26% stake in Optare Plc. HLFL holds 100% of HHFL’s share capital prior to this secondary purchase from HLFL by Ashok Leyland. Valuations for both deals were conducted by independent valuers.

Financial Performance of Targets

Optare Plc reported consolidated revenue of ₹1,879.11 crore for FY26, a significant increase from ₹1,213.41 crore in FY25 and ₹696.38 crore in FY24. This represents three consecutive years of revenue growth for the UK entity.

HHFL, registered with the National Housing Bank (NHB), reported revenue of ₹1,932.50 crore for FY26, up from ₹1,662.08 crore in FY25 and ₹1,137.94 crore in FY24. As the third-largest affordable housing finance company in India, HHFL focuses on self-employed and underserved segments in Tier II, Tier III, and semi-urban markets.

What the Numbers Show

The scale of the investments relative to the subsidiaries’ revenues highlights distinct strategic priorities. The proposed ₹325 crore injection into Optare represents roughly 17% of its FY26 revenue, suggesting a substantial capital requirement likely tied to debt restructuring or heavy CAPEX for EV expansion. In contrast, the ₹500 crore investment in HHFL amounts to approximately 26% of its FY26 revenue, aimed at bolstering its balance sheet to increase lending capacity, which directly supports Ashok Leyland’s core commercial vehicle sales through improved customer financing options.

The company expects to complete both acquisitions by March 31, 2027.

Ashok Leyland Limited has approved the appointment of Deloitte Haskins & Sells Chartered Accountant LLP as its statutory auditors for a term of five consecutive years. The Board of Directors made the decision during its meeting held on August 14, 2026, following a recommendation from the Audit Committee. The new auditors will serve from the conclusion of the 78th Annual General Meeting in 2027 until the conclusion of the 83rd AGM in 2032.

The appointment replaces Price Waterhouse & Co. Chartered Accountants LLP, which is completing its mandatory ten-year tenure as statutory auditors at the end of the 78th AGM. The company must seek shareholder approval for the change during the 78th AGM scheduled for 2027. The filing was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor Profile

Deloitte Haskins & Sells Chartered Accountant LLP, registered with the Institute of Chartered Accountants of India (Registration No. 117364W/W100739), was constituted in 1997 and converted into a Limited Liability Partnership on June 2, 2021. The firm operates as part of the Deloitte Haskins & Sells & Affiliates network.

Key details regarding the appointment include:

The firm has approximately 130 partners and maintains offices in Mumbai, Gurugram, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, and Pune. Its registered office is located in Ahmedabad. There are no disclosed relationships between the auditor and the company’s directors.