Diversified portfolio, higher margins to drive gains for Ashok Leyland

A smarter load mix and tightened cost base give it a cleaner, more controlled run than its biggest rival

The second-quarter (July–September/Q2) results for 2025–26 (FY26) offered a mixed picture for the two listed commercial vehicle (CV) majors. Brokerages are upbeat on Ashok Leyland but wary of Tata Motors, which has reported its first set of numbers as a standalone CV company following its demerger. 

Ashok Leyland’s appeal stems from its move beyond trucks, restrained capital expenditure (capex), stronger exports, and a cleaner product mix. At current levels, Tata Motors trades at just over 10x its 2026–27 (FY27) enterprise value-to-operating profit, while its smaller rival commands about a 15 per cent premium on that metric. 

Revenue growth in Q2FY26