Ashok Leyland rallies 13% in 1 week; what's driving the auto stock price?

With GST rationalisation & pick up in government capex, CV volumes are likely to improve going forward (expectations of positive YoY growth in FY26), according to ICICI Securities.

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Ashok Leyland share price today

 

Ashok Leyland shares hit a new high of ₹164.50, surging 3 per cent on the BSE in Tuesday's intraday deals. In the past two trading days, the stock price of Ashok Leyland has rallied 4 per cent after the commercial vehicles (CV) company recorded a strong sales growth in the month of November 2025. In comparison, the BSE Sensex was down 85,333 at 10:34 AM.

 

In the past one week, Ashok Leyland shares have outperformed the market by soaring 13 per cent, as against a 0.84-per cent rise in the BSE Sensex. Further, in the past three months, the stock has surged 25 per cent, as compared to 6 per cent gain in the benchmark index.  READ LATEST STOCK MARKET UPDATES TODAY LIVE

Ashok Leyland November 2025 auto sales

 

One of the leading automotive original equipment manufacturers (OEMs) posted healthy volume prints for November 2025, primarily driven by sustained demand momentum post festive season and amplified by GST 2.0 reforms, which lowered vehicle prices and boosted consumer sentiment.

 

Ashok Leyland's CV space reported healthy volume prints were visible across medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments. 

 

Total sales were up by 29 per cent year-on-year (Y-o-Y) at 18,272 units. M&HCV witnessed a growth of 27.3 per cent Y-o-Y at 1,162 units. Export volumes witness growth of 7 per cent Y-o-Y at 1,781 units.

 

"With GST rationalisation and a pick up in government capex, CV volumes are likely to improve going forward (expectations of positive Y-o-Y growth in FY26). CV space surprised positively," ICICI Securities said in a note.

 

Meanwhile, Ashok Leyland's management remains optimistic about a sustained growth in H2FY26.

 

"The Indian CV industry is optimistic about growth prospects for FY26 led by steady macro-economic environment and declining interest rates. Looking ahead, sustained demand from rural areas, an anticipated revival in urban consumption, expected recovery of fixed capital formation supported by increased government capital expenditure, higher capacity utilization, and healthy balance sheets of corporates and banks are expected to support growth," Ashok Leyland said in its FY25 annual report.  ALSO READ | Hindustan Construction zooms 14% on fixing record date for rights issue 

Total Industry Volume (TIV) growth is expected to be led by replacement demand, mandatory scrapping of older government vehicles. Rail corridors (WDFC & EDFC) and development of 35 Multimodal logistics parks coupled with the digital ULIP platform, aims to improve the competitiveness of Indian logistics sector by enabling smooth movement of goods across the country. This is expected to give a fillip to hub and spoke transportation, with higher tonnage trucks being used for hub transportation and electric ICVs & LCVs being used for first and last mile transportation to the hubs, the company said.

 

MHCV Buses segment is expected to stay flat on account of higher base (strong growth in MHCV Buses over the last 2 fiscals). LCV segment is also expected to bounce back led by strong agriculture growth and rural consumption. This segment is also expected to play a key role in driving efficiency in e-commerce logistics, particularly for intercity transport of consumer durables. Downside risks for FY26 growth are likely to emerge from tariff uncertainty and global trade disruptions, Ashok Leyland said.

   

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