Q2 results preview: Volume-led sales growth may outpace profits
Ashok Leyland expects robust volume growth in the near term and margin recovery from Q3FY27, aided by price hikes, cost controls, replacement demand and market-share gains
The automaker's revenue from operations stood at ₹13,069.59 crore during the April-June quarter, up 12 per cent year-on-year (Y-o-Y) from ₹11,708.54 crore.
Stocks to watch today: RIL, Amber Enterprises, ONGC, Ather Energy, NMDC, Voltas, Patanjali Foods, EaseMyTrip, Cochin Shipyard, Jindal Stainless, Brigade Enterprises, among others, will be in focus.
Ashok Leyland posted its highest-ever first-quarter revenue and net profit, driven by record volumes, even as rising material costs weighed on operating margins
Commercial vehicle maker Ashok Leyland Ltd on Friday reported a 1.5 per cent increase in consolidated net profit at Rs 667.77 crore for the first quarter ended June 30, 2026. The company had posted a consolidated net profit of Rs 657.72 crore in the corresponding period of the previous fiscal, Ashok Leyland Ltd said in a regulatory filing. Consolidated revenue from operations stood at Rs 13,069.59 crore in the quarter under review as against Rs 11,708.54 crore in the year-ago period, it added. The company's board has approved an investment of up to 25 million pounds (approximately Rs 325 crore) in its UK subsidiary Optare Plc. and another up to Rs 500 crore in equity shares of Hinduja Housing Finance Ltd through secondary purchase of shares. Total expenses in the quarter under review were higher at Rs 12,314.66 crore as compared to Rs 10,920.53 crore in the same period a year ago, the company said. During the quarter, the company said it posted its highest ever commercial vehicles
Ajit Mishra of Religare Broking recommends Ashok Leyland, CG Power, and Nalco as top stock picks, noting that short-term momentum has strengthened.
Among interest rate sensitives, Exide, Uno Minda, Bosch, Tata Motors CV, Ashok Leyland, Godrej Properties, DLF and Lodha Developers gained 3-5% in Wednesday's intra-day trade post RBI policy.
Auto stocks in demand: BSE Auto index rose 2 per cent, and quoted nearly its all-time high of 64,584 hit on January 1, 2026.
India's automobile industry recorded its strongest-ever first quarter, with record sales across key segments, while SIAM expects festive demand and easier financing to sustain momentum
Tube Investments of India, Ashok Leyland were among the major laggards. Both counters fell over 3 per cent as the Brent price surged to $85 per barrel mark, adding pressure on auto stocks.
The partnership will give Ashok Leyland customers access to Rosmerta's authorised scrappage facilities, along with support for deregistration and statutory documentation
Looking ahead, while commodity pressures will persist, Tata Motors expects the momentum to continue, driven by gradual improvement in customer sentiment which had seen softening during June quarter.
Key trigger: Brent Crude prices have declined to $73/barrel, to almost its lowest since start of the US Iran war on February 28, 2026.
Among sectors, Bernstein expects oil marketing companies (OMCs) will likely stand to benefit from reduced crude oil prices that dropped around 4 per cent on Monday to $83 a barrel (bbl)
In addition to the 8 per cent discount offered by participating OEMs, the Central Government will provide 5 per cent interest subvention and fixed monthly fuel vouchers for a period of five years
Falling crude price is a clear positive for India's automobile and tyre sectors, where raw material and logistics costs are highly sensitive to crude derivatives, say analysts at ICICI Securities.
The company is exploring autonomous defence vehicles and logistics drones while targeting a larger share of overseas defence revenue and upcoming mobility tenders
However, in the past one month, the Nifty Auto index underperformed the market and fell 3.6 per cent, as against 2.7 per cent decline in the Nifty 50 as of June 11, 2026.
The commercial vehicle maker is also developing a hydrogen-powered Stallion and targeting defence mobility opportunities worth ₹11,000 crore over the next three to five years