Ashok Leyland posts record Q4 profit of ₹1,405 crore on strong demand

The Hinduja Group flagship reported record quarterly and annual revenues, EBITDA and profit, driven by strong commercial vehicle sales and export growth

Commercial vehicle major Ashok Leyland, the Indian flagship of the Hinduja Group, has posted its highest-ever net profit for the fourth quarter of the financial year 2025-26 at ₹1,405 crore, up 13 per cent from ₹1,246 crore in Q4 last year.

 

The company has also delivered its best-ever fourth quarter and financial year performance, reporting the highest-ever quarterly and annual revenues, EBITDA (earnings before interest, taxes, depreciation and amortisation), and net profit. Its revenue from operations was up 19 per cent to ₹14,160.49 crore during the quarter under review. Dheeraj Hinduja, chairman of Ashok Leyland, said the major reasons for the strong performance during the year were improved sales driven by the GST 2.0 boost by the government and replacement demand. The company has lined up a capital expenditure of ₹800-1,000 crore in FY27.

 

 

The company also reported an EBITDA of ₹2,066 crore for Q4 FY26, up 15 per cent from ₹1,791 crore for the same period last year. Cash generated during the quarter was ₹3,280 crore.

 

For the financial year 2025-26, its net profit stood at ₹3,566 crore, up 8 per cent from ₹3,308 crore in FY25. This was after a one-time charge of ₹308 crore owing to the new Labour Code. Revenue during the period also touched a record ₹44,007 crore versus ₹38,753 crore last year, up 14 per cent. FY26 EBITDA was up 13 per cent to ₹5,732 crore compared to ₹4,931 crore last year. The company ended the financial year with net cash of ₹5,899 crore.

 

Overall commercial vehicle volumes scaled a new all-time high of 220,437 units, surpassing the previous peak of 197,366 units achieved in FY19. The CV volumes in FY26 were up 13 per cent from last year. Light commercial vehicle (LCV) volumes set a new benchmark, reaching 74,322 units, well above the earlier high of 66,633 units in FY24.

 

Export volumes also reached a historic high of 18,082 units, delivering a robust growth of 18.5 per cent over the previous year’s 15,255 units. “Our CV and export volumes were at an all-time high, reflecting the deep trust our customers place in us. The company delivered significant growth in Power Solutions, Aftermarket, and Electric Mobility businesses. Our Defence order pipeline is at an all-time high, signifying our ability to deliver superior growth in the coming years. Our entry into Indonesia gives a further boost to our ambition in global markets,” Hinduja said.

 

“Our strong margin expansion reflects the success of our premiumisation strategy, the resilience of our operations, and the growing strength of our diversified business portfolio. A record cash surplus of nearly ₹6,000 crore provides us with significant firepower for enhanced investments in products, technology, and future-ready solutions, while continuing to elevate customer experience. With three consecutive years of record performance, we are more confident than ever in our ability to strengthen our technology leadership, gain market share, and further enhance price realisation through superior value delivery,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.

 

The Board of Directors declared a second interim dividend of ₹2.50 per share (face value of ₹1 per share). Together with the interim dividend declared and paid during Q3, the overall dividend for the year works out to ₹3.50 per share (350 per cent).