Management highlighted that the SWITCH India entity was both EBITDA and PAT positive for H1FY26 | Photo Credit: KSL
CMP: ₹150.50
We expect that the company’s margin expansion will continue, led by higher growth of the non-CV segments, continuing cost mitigation efforts, and the launch of higher horsepower (HP) vehicles in the higher-margin tipper segment. However, we remain concerned about the higher pledging by the promoter group and will closely watch out for any developments on the same.
Management highlighted that the SWITCH India entity was both EBITDA and PAT positive in H1FY26, having sold 600 units of each the e-Bus and e-LCV. The e-bus order book stood at 1,650. The company is aiming for the entity to reach FCF positive by FY27. It mentioned that the new product ‘Saathi’ in the 2-4T segment is gaining good traction from the <2T replacement segment due to a better value proposition.
Considering that the company has resumed active participation in e-Bus tenders again, and with SWITCH India already reaching profitability at the PAT level, we expect value unlocking to occur sooner as its market value gets established.
Given the lack of data and financials, we have factored the benefit into the company’s valuation multiple, valuing the company’s core business at 19x Sep-27 EPS (vs 18x earlier). Also, we include the value of Hinduja Leyland Finance (₹24) to arrive at a target price of ₹178. We maintain a Buy rating.
Published on November 13, 2025
