Ashok Leyland Q1 profit rises 19% on record CV sales, cost control

Ashok Leyland Q1 FY26 profit rose to ₹657.72 crore on record CV volumes, improved market execution and cost discipline, with revenue up 9.5% and exports at an all-time high

Commercial vehicles major Ashok Leyland on Thursday reported a 19 per cent on year rise in its consolidated net profit during the first quarter of the financial year 2025-26 (Q1FY26) to ₹657.72 crore, on the back of highest-ever quarterly commercial vehicles (CV) volumes, effective market execution and rigorous cost management, the company said.

 

It had reported a consolidated net profit of ₹550.65 crore in Q1FY25.

 

The Hinduja Group flagship firm’s revenue from operations for the period under review was seen at ₹11,708.54 crore, up 9.5 per cent versus ₹ 10,696.8 crore during the same quarter in FY25.

 

The company’s total expenses for the period also increased 9.3 per cent to ₹10,920.53 crore, as compared to ₹ 9,994.97 crore in the year-ago period.

 

The company board on Thursday approved investments of around ₹300 crore in its e-Mobility as a Service (EMaaS) subsidiary Ohm Global Mobility, and another ₹5.7 crore in the bus body and coach-building arm Vishwa Buses and Coaches (VBCL).

 

“Ashok Leyland has delivered a robust Q1 performance, exceeding the expectations through effective market execution while maintaining rigorous cost management. For the tenth quarter in a row, we have registered a double-digit Ebitda margin,” said Dheeraj Hinduja, chairman, Ashok Leyland. 

 

Ebitda was up at 11.1 per cent for Q1FY26 at ₹970 crore as against 10.6 per cent at ₹911 crore in Q1 FY25. The company continues to be cash positive at the end of Q1FY26 at ₹821 crore.

 

“Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive Ebitda. We are redoubling our efforts in the international markets and defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry,” he added.

 

Ashok Leyland recorded its highest-ever quarterly commercial vehicles (CV) volumes of 44,238 units in the first quarter. The domestic medium and heavy commercial vehicle (MHCV) industry almost remained flat on a high base of last year’s first quarter.

 

Ashok Leyland MHCV truck volumes (excluding defence) grew 2 per cent, registering a year-on-year market share increase from 28.9 per cent to 30.7 per cent. MHCV bus total industry volume (excluding EVs) grew by 5 per cent. Ashok Leyland maintained its domestic market leadership position in MHCV buses.

 

“We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen Ebitda margins in the medium term, while advancing our commitment to future-ready technologies,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.

 

Light commercial vehicle (LCV) domestic Q1 volume at 15,566 units was the highest ever for the quarter.

 

The export volume in the first quarter grew 29 per cent Y-o-Y to 3,011 units.

 

“We don’t see any impact as a result of this tariff. Exports in Q1 were at an all-time high mainly due to West Asia, SAARC, and Africa. This year, we could achieve the highest sales in the export market,” Hinduja added.