Can Switch Mobility carve a strong moat in India’s e-bus market?

In a significant development for India’s electric bus industry, Switch Mobility has reported positive earnings, achieving both EBITDA and net profit for the first nine months of the fiscal year. The announcement comes as the company strengthens its foothold in a rapidly growing yet highly competitive electric bus market.

The company has also successfully delivered electric buses in international markets, demonstrating its expanding global footprint.

Strong Order Book and Double-Digit Margins

Switch Mobility’s financial turnaround is underpinned by a robust order book of over 1,800 electric buses. The March quarter closed with a strong double-digit EBITDA margin, signaling operational efficiency and sustainable profitability.

Dheeraj Hinduja confirmed that the company has a clear product roadmap, healthy financials, and growing market confidence. Achieving positive PAT alongside EBITDA marks a pivotal moment for Switch Mobility, reflecting a shift from its prior investment-heavy phase.

A Two-Year Turnaround Story

Two years ago, Switch Mobility was still in investment mode, with management urging patience from investors. By mid-2025, the company had reached EBITDA break-even, keeping cash burn under control.

In May 2025, another milestone was reached when the March quarter closed with a strong double-digit EBITDA margin, setting the stage for full net-level breakeven in the current fiscal year.

Backed by Ashok Leyland’s Market Strength

Ashoka Leyland, which holds approximately 40% share in India’s bus market, provides a solid platform for Switch Mobility. Leveraging Ashok Leyland’s established service networks, brand trust, and industry relationships, Switch is well-positioned to capitalize on the growing demand for electric buses in both domestic and international markets.

Potential for Long-Term Competitive Edge

While early profitability is promising, analysts note that India’s electric bus segment remains intensely competitive, with government contracts, tight margins, and multiple players vying for market share.

Switch Mobility’s improving margins, strong order book, and international expansion indicate a potential path to building a sustainable competitive moat. If the company continues to execute effectively, expand its product roadmap, and maintain healthy financials, it could emerge as a leading player in India’s fast-growing electric bus industry.