Shares of Ashok Leyland Ltd were trading in the green during the opening hours after the company’s board approved investments of up to Rs 850 crore across its subsidiaries, including Optare Plc in the UK and Hinduja Housing Finance. 

The move is aimed at supporting the company’s international electric mobility business and strengthening its financial services operations. A major portion of the approved investment is linked to Optare, Ashok Leyland’s UK-based subsidiary and the holding company of Switch Mobility’s UK operations. 

The funding will support the subsidiary’s capital requirements and help reduce debt. Ashok Leyland has previously made investments in Optare to support its capex and loan repayment needs.

The company has been working to improve the performance of its electric mobility business. Switch Mobility India achieved net profitability in FY26, while its electric bus deliveries increased sharply during the year. The company delivered 1,530 electric buses in FY26, up 238% from the previous year, along with around 1,600 electric LCVs.

Another important part of Ashok Leyland’s strategy is its financial services business. Hinduja Leyland Finance reported 24% growth in AUM to around Rs 59,000 crore in FY26, while profit after tax increased 20% to Rs 491 crore. Hinduja Housing Finance also recorded 15% growth in AUM to around Rs 16,000 crore.

The latest investment plan therefore supports two different areas of Ashok Leyland’s broader strategy: electric mobility and vehicle financing. Strengthening these businesses could help the company diversify its revenue sources beyond its core commercial vehicle operations.

The development also comes as Ashok Leyland reported a record first quarter, with commercial vehicle volumes reaching 48,763 units, the highest quarterly volume in the company’s history.

However, by 2:05 pm, the shares shed all their early gains and were trading 1.4% lower at Rs 173.67 on the NSE. 

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