Ashok Leyland Q1 Results: Net Profit Jumps 13% to Rs 594 Crore, Revenue Up 1.5%

Ashok Leyland reported a 13% YoY increase in net profit to Rs 594 crore for Q1 FY26, with revenue up 1.5% YoY to Rs 8,724.51 crore. The company's highest-ever commercial vehicle volumes were recorded at 44,238 units, and its highest Q1 revenue was Rs 8,725 crore. EBITDA and profit after tax also rose to Rs 970 crore and Rs 594 crore, respectively.

Ashok Leyland, the Indian flagship of the Hinduja Group, reported robust financial performance for the first quarter of fiscal year 2026 (Q1 FY26). The company's net profit surged by 13% year-on-year (YoY) to Rs 594 crore, while revenue climbed by 1.5% YoY to Rs 8,724.51 crore [1].

The quarter marked Ashok Leyland's highest-ever commercial vehicle volumes at 44,238 units, a 2% increase from the previous year. This resulted in the highest Q1 revenue of Rs 8,725 crore, a 10% YoY rise. EBITDA and profit after tax also saw significant improvements, reaching Rs 970 crore and Rs 594 crore, respectively [2].

The company's domestic medium and heavy commercial vehicle (MHCV) industry performance was noteworthy. Truck volumes (excluding defence) grew by 2%, lifting market share from 28.9% to 30.7%. In the MHCV bus segment (excluding electric vehicles), volumes expanded by 5%, with Ashok Leyland retaining its leadership position. Light commercial vehicle (LCV) sales in India reached 15,566 units, the highest ever for a first quarter. Exports also surged by 29% YoY to 3,011 units [2].

The company's strong performance was attributed to effective market execution, strict cost control, and significant contributions from non-CV segments such as Power Solutions, Aftermarket, and Defence. The subsidiary, Switch Mobility, focused on electric vehicles, achieved positive EBITDA.

Chairman Dheeraj Hinduja emphasized the company's focus on international markets and the Defence business, while reinforcing product strengths and customer orientation. Managing Director and CEO Shenu Agarwal highlighted the goal of achieving mid-teen EBITDA margins over the medium term, alongside growth in future-ready technologies [1].

Ashok Leyland ended the quarter with a cash surplus of Rs 821 crore, reflecting its strong financial health and operational efficiency.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/earnings/ashok-leyland-q1-results-net-profit-jumps-13-to-rs-594-crore-revenue-up-1-5/articleshow/123299953.cms
[2] https://www.autocarpro.in/news/ashok-leyland-q1-revenue-rises-10-to-%E2%82%B98725-crore-profit-up-13-128072