Ashok Leyland Q3 results: Net profit rises 5% to ₹862 crore, revenue up 22%

Ashok Leyland reported a 5% rise in Q3FY26 consolidated net profit to ₹862 crore, with revenue up 22% and strong growth in MHCV and LCV volumes

Commercial vehicle major Ashok Leyland has posted a 5 per cent increase in consolidated net profit during the third quarter of FY26 to ₹862 crore, compared to ₹820 crore during the corresponding period last year.

 

This was after considering a one-time charge of ₹331 crore towards the new Labour Codes.

 

The revenue of the company, the Indian flagship of the Hinduja Group, was up 22 per cent during the period to ₹12,702 crore compared to ₹10,375 crore during Q3FY25.

 

On a standalone basis, its net profit, revenue and earnings before interest, taxes, depreciation, and amortization (Ebitda) were seen at all-time high third-quarter numbers. Its standalone net profit for Q3 was ₹796 crore, posting an increase of 4 per cent over the same period last year.

 

 

Third-quarter revenues were seen at ₹11,534 crore versus ₹9,479 crore in Q3FY25, posting a growth of 22 per cent. The company reported an all-time high Q3 Ebitda of ₹1,535 crore (13.3 per cent) against ₹1,211 crore (12.8 per cent) in Q3FY25, with a growth of 27 per cent. This is also the 12th consecutive quarter of registering double-digit percentage Ebitda.

 

“The GST 2.0 decision by the government has provided much-needed thrust during the third quarter, followed by a strong Budget during the current quarter. The current quarter is also looking very good. According to the latest estimates, we should be ending the year with over 10–12 per cent growth,” said Dheeraj Hinduja, executive chairman, Ashok Leyland.

 

Balaji K M, chief financial officer, Ashok Leyland, said the company is planning a capital expenditure of around ₹2,000 crore in the next two years.

 

“We already had a capex of ₹800 crore in the first three quarters of this year, and another ₹300 crore in the last quarter, taking the total to around ₹1,100 crore. We are planning to have a capex of around ₹1,000 crore each year for the next two years,” Balaji added.

 

The company’s MHCV (medium and heavy commercial vehicles) volumes were at 32,929 units in Q3FY26 versus 26,692 units in Q3FY25, up 23 per cent. This is higher than Q3 industry growth, resulting in market share gain.

 

Ashok Leyland’s domestic MHCV market share continues to be above 30 per cent. The company has also maintained market leadership in the bus segment with a 40 per cent market share in Q3. Light commercial vehicle (LCV) volumes were at 20,518 units in Q3FY26 compared to 15,754 units in Q3FY25, posting a growth of 30 per cent. This is higher than the industry volume growth (VAHAN), resulting in market share gain. Export volumes for the period were 4,965 units versus 4,151 units in Q3FY25, up 20 per cent.

 

“Our strong and consistent growth in volumes and profitability underscores the competitiveness of our portfolio, which delivers superior performance and customer value, reinforced by deep and effective customer engagement across all segments,” Hinduja said.

 

“We are executing a structured pipeline of product introductions across conventional and alternative propulsion platforms to further strengthen our leadership in the domestic market and accelerate our expansion in international markets,” he added.

 

Hinduja said that the company’s electric vehicle arm, Switch, has a healthy order book and a well-defined product roadmap. It has started delivering buses in international markets and has achieved positive Ebitda and PAT over the first nine months.

 

Net cash was ₹2,619 crore at the end of the quarter as against net cash of ₹958 crore at the end of Q3FY25. Ashok Leyland recently launched its all-new HIPPO and TAURUS product range, offering category-leading performance and reliability in the tipper and tractor-trailer segments.

 

“The GST rationalisation has not just lowered prices, but also brought a fillip to the overall freight demand, triggering a fresh replacement cycle in the CV industry. With supportive macroeconomic fundamentals and improving customer sentiment, we remain confident about the medium- to long-term growth prospects of the CV industry. Our strategy continues to be anchored in delivering profitable growth through sustained product premiumisation, structural cost competitiveness, wider service coverage, and continued focus on growing non-CV businesses,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.