Ashok Leyland signs ₹5,000 crore deal with CALB; here is why the stock jumped 4%

The company on Monday had said it has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China.

Ashok Leyland will invest in battery localisation in India. This will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in the energy storage sector, the firm said. The business would entail investments of over ₹5,000 crore over the next 7-10 years.

Commenting on the development, Chairman Dheeraj Hinduja said, “Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with the government’s vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate adoption of electric vehicles in India and reduce our dependence on fossil fuels.”

The Hinduja Group flagship, in a statement, had also said that the initiative will not only provide for the company's and its subsidiary Switch's own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector, as well as in the energy storage sector.

Ashok Leyland MD and CEO Shenu Agarwal said, “In the initial phase, the new battery business shall focus on the automotive sector and then move to non-automotive areas as well, including energy storage systems.”

“A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes,” he further added.

Meanwhile, the commercial vehicle maker reported a 5% year-on-year (YoY) increase in total sales at 15,239 units in August. The company had sold a total of 14,463 units in August 2024.

Its domestic sales grew 2% to 13,622 units as against 13,347 units in the year-ago month.

Shares of Ashok Leyland opened at ₹128.71 apiece on NSE and touched an intraday high of ₹132.79 apiece, marking a 3.7% jump. Last seen, the stock was trading at ₹31.76 apiece, rising 2.91%.

Over a month’s period, shares of the commercial vehicle firm have gained over 7.5%. Year-to-date, it has zoomed more than 18%.

Since March 3, 2025, which is six months, Ashok Leyland shares have climbed 26%.

The company’s total market capitalisation stands at ₹77,371.62 crore, according to NSE data.

Shares of the firm had touched their one-year high of ₹134.31 apiece on August 20, 2025, while their 52-week low of ₹95.93 was hit on April 7, 2025.

The Chennai-based firm had reported a growth of 20% in its consolidated net profit at ₹611 crore for the quarter ended June 30 as compared to ₹509 crore in the same quarter of the previous fiscal year.

The commercial vehicle (CV) maker’s revenue from operations increased 9.4% to ₹11,709 crore for the quarter under review as against ₹10,697 crore in the year-ago period.

On the operational level, Ashok Leyland’s earnings before interest, taxes, depreciation, and amortisation (EBITDA), also known as operating profit, gained 18% to ₹2,173 crore in Q1 FY26 as compared to ₹1,841 crore in the corresponding quarter of the previous fiscal year.

In Q1 FY26, its EBITDA margin expanded to 18.5% in contrast to 17.2% on a year-on-year (YoY) basis.