Under the agreement, Azad India Mobility will pay a monthly rent of Rs 25.5 lakh, with a 5% escalation every 12 months. The lease is for five years, with provision for extension by mutual agreement.

The arrangement is classified as a related-party transaction, as promoters Bupinder Singh Chadha and Chamjit Singh Chadha are directors in both entities. The company said the deal was executed on an arm’s length basis.

Azad India Mobility said the leased facility will provide dedicated space and legal certainty to expand operations in the electric mobility sector. With a capacity to manufacture up to 1,500 buses annually, the unit is expected to strengthen the company’s position in India’s growing green transport market.

Azad India Mobility is engaged in the business of manufacturing of electric buses.

On a consolidated basis, Azad India Mobility reported net profit of Rs 0.07 crore in Q1 June 2025 as against net loss of Rs 0.17 crore in Q1 June 2024. Net sales were reported at Rs 7.69 crore in Q1 June 2025. No sales were reported in the same quarter last year.