Ashok Leyland Q2 profit rises 7% to ₹756 crore, declares dividend

Ashok Leyland's income from operations rose 9.4% year-on-year and 7.6% sequentially to ₹10,543.97 crore in Q2FY26, with strong demand and improved margins

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Hinduja Group-led Ashok Leyland on Wednesday reported a consolidated net profit of ₹755.77 crore in the second quarter of the financial year 2025-26 (Q2FY26), up 7.1 per cent from ₹705.64 crore in the same quarter last year. Sequentially, profit rose 23.66 per cent from ₹611.07 crore. The company attributed the improvement to continued demand across segments.

 

The commercial vehicle major reported income from operations of ₹10,543.97 crore, marking a 9.4 per cent year-on-year (Y-o-Y) growth and 7.58 per cent sequentially.

 

 

“We continue to deliver profitable growth, driven by continuing demand. Our robust all-round performance symbolises the competitiveness of our products and strong customer focus. In the international business, we are intensifying our expansion strategy in our focus markets of the Middle East, Africa, and Saarc. Switch Mobility is performing well with an order book of nearly 1,500 vehicles,” said Dheeraj Hinduja, chairman of Ashok Leyland.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter stood at ₹1,162 crore, with a margin of 12.1 per cent, up from ₹1,017 crore in the same period last year, the company said.

 

What did Ashok Leyland announce on dividend for Q2FY26?

Ashok Leyland’s board approved an interim dividend of ₹1 per share, scheduled to be paid on or before December 11, 2025, the company said in a BSE filing.

 

How did Ashok Leyland perform in vehicle sales during Q2FY26?

• Domestic medium and heavy commercial vehicle (MHCV) sales rose 3 per cent Y-o-Y to 26,307 units in Q2FY26.
• Domestic light commercial vehicle (LCV) volumes increased 6 per cent Y-o-Y to 17,697 units.
• Exports grew 45 per cent Y-o-Y to 4,784 units.

 

“The industry has posted growth, albeit modest, and we anticipate better performance in the second half. Ashok Leyland has achieved its eleventh consecutive quarter of double-digit Ebitda. Margin expansion is being driven by product premiumisation, network growth, operational efficiency, cost optimisation, and digital enablement. We believe we are well-positioned to achieve our mid-teen Ebitda goal in the medium term,” said Shenu Agarwal, managing director and chief executive officer (CEO) of Ashok Leyland.