Ashok Leyland bucks trend, surges 3% in weak market on huge volumes

Share price of Ashok Leyland today

 

Shares of Ashok Leyland rallied 3 per cent to ₹190.70 on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise weak market.

 

At 02:01 PM; Ashok Leyland was quoting 2.3 per cent higher at ₹188.75, as compared to 0.74 per cent decline in the BSE Sensex. The stock price of the commercial vehicle (CV) maker had hit a record high of ₹191.80 on Monday, January 5, 2026. 

 

The average trading volumes at the counter more-than-doubled with a combined 20.42 million equity shares changing hands on the NSE and BSE.

 

 

In the past one month, Ashok Leyland has outperformed the market by surging 18 per cent, as compared to 1.3 per cent decline in the BSE Sensex. In the past six months, the stock has soared 50 per cent, as against 0.04 per cent gain in the benchmark index. Further, in the past one year, Ashok Leyland has zoomed 76 per cent, as compared to 7.7 per cent gain in the BSE Sensex. 

 

Why has Ashok Leyland outperformed the market?

 

India’s automotive original equipment manufacturers (OEMs) posted healthy volume prints for December 2025. It was primarily driven by sustained demand momentum led by GST rate cuts, which lowered the vehicle prices. CV & Tractor segment outperformed peers for December 2025. CV space reported healthy volume prints with continued recovery visible across the M&HCV (Medium & Heavy Commercial Vehicles) and LCV (Light Commercial Vehicles) segments.

 

Ashok Leyland led the growth charge in the CV domain. The company reported healthy volume prints for the month of December 2025. Total sales were up by 27 per cent year-on-year (YoY) at 21,533 units. M&HCV witnessed a growth of 29.2 per cent YoY at 14,830 units. Export volumes witness growth of 35 per cent YoY at 1,678 units.

 

MHCV trucks smoothly transitioned to the AC mandate, signifying growing acceptance towards safety and comfort in the Indian trucking industry. GST 2.0 added cheer to the festive season on two accounts, the rate rationalization from 28 per cent to 18 per cent brought down the cost of owning new trucks and buses, while GST rate reduction in several other categories of goods is expected to increase the overall freight demand, Ashok Leyland said in the Q2 earnings conference call.

 

For the second half of the current fiscal, the management remains optimistic about the growth prospects of the CV industry for both M&HCV and LCV segments. The LCV segment has already picked up on the back of GST rate cuts. The management believes M&HCV industry would also remain buoyant in H2, led by growth in broad-based consumption and increase in infrastructure activity. 

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Meanwhile, going forward with GST 2.0, increased fleet utilization levels, pick up in government capex, and interest rate-cut transmission, Ashok Leyland expects margins to improve in H2FY26 and reach mid-teen levels in the medium term, analysts at ICICI Securities said in the Q2 result update.

 

The company’s strong positioning in M&HCVs, export momentum & progress in EVs support its long-term growth narrative, however lack of clarity for volume recovery in the near term will keep stock price gains under check, the brokerage firm said.