Ashok Leyland Approves Rs 850 Crore Investment In Optare And Hinduja Housing Finance
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Ashok Leyland's board has cleared investments worth up to Rs 850 crore in its UK subsidiary Optare Plc and in Hinduja Housing Finance, a move announced alongside the company's June quarter results.
Ashok Leyland's board has given the green light to two separate investments totaling up to Rs 850 crore, the company said in a filing on Friday, 14 August. The decision was taken at a board meeting held the same day.
Of the total outlay, around Rs 325 crore will go toward the company's UK-based subsidiary Optare Plc, to be infused in one or more tranches. A larger allocation of up to Rs 500 crore has been approved for equity shares of step-down subsidiary Hinduja Housing Finance, acquired through a secondary purchase from Hinduja Leyland Finance, a material subsidiary of the company. Both transactions are expected to be completed by 31 March 2027.
The investment in Optare will marginally raise Ashok Leyland's stake in the UK unit, from its current holding of 93.28% to 93.49% post allotment. The Hinduja Housing Finance transaction, meanwhile, will restructure how the company holds its stake in the housing finance arm. Ashok Leyland currently holds an indirect stake of 61.12% in HHFL. Once the deal goes through, its direct shareholding will stand at 8.9%, while its indirect holding will settle at 55.68%.
Ashok Leyland Q1 FY 2026-27 Results
The investment announcement came on the same day the company reported its June quarter earnings. Net profit for the quarter rose 2.6% to Rs 609 crore, up from Rs 594 crore in the corresponding period last year. Revenue climbed 10.4% to Rs 9,634 crore, compared with Rs 8,724.5 crore a year earlier.
Profitability, however, showed signs of pressure. EBITDA for the quarter stayed largely flat at Rs 969 crore, while margins contracted to 10.1% from 11.1% in the year-ago period, pointing to some strain on costs even as revenue continued to grow.
Ashok Leyland Share Price
Shares of Ashok Leyland were trading 1.7% lower at Rs 173.31 apiece at 2:05 pm on Friday, even as the broader announcements around new investments and quarterly earnings kept the stock in focus. The counter has gained 11.7% over the past month, though it remains down 6.2% on a year-to-date basis.
Also Read - Ashok Leyland Q1 FY 2026-27 Results: Net Profit Rises 2.5% To Rs 609 Crore, Volumes Hit Record High
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Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
