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Informist, Wednesday, Nov. 12, 2025

 

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--Ashok Leyland Jul-Sept net profit INR 7.71 bln
--Analysts saw Ashok Leyland Jul-Sept net profit at INR 7.33 bln
--Ashok Leyland Jul-Sept revenue INR 95.88 bln
--Analysts saw Ashok Leyland Jul-Sept revenue at INR 95.77 bln
--Ashok Leyland Jul-Sept net profit INR 7.71 bln vs INR 7.70 bln year ago
--Ashok Leyland Jul-Sept revenue INR 95.88 bln vs INR 87.69 bln year ago
--Ashok Leyland Apr-Sept net profit INR 13.65 bln vs INR 12.96 bln year ago
--Ashok Leyland Apr-Sept revenue INR 183.13 bln vs INR 173.67 bln year ago
--Ashok Leyland to pay INR 1 per share interim dividend for FY26
--Ashok Leyland interim dividend record date is Nov 18
--Ashok Leyland Jul-Sept EBITDA INR 11.62 bln vs INR 10.17 bln year ago
--Ashok Leyland Jul-Sept operating margin 12.12% vs 11.60% year ago
--Ashok Leyland Jul-Sept EBITDA margin 12.1% vs 11.6% year ago
--Ashok Leyland: Domestic M&HCV market share remains above 30%
--Ashok Leyland: Domestic LCV market share in addressable segments improved
--Ashok Leyland: Distribution network expansion running ahead of plan
--Ashok Leyland: Switch Mobility has orderbook of nearly 1,500 vehicles
--Ashok Leyland: Anticipate better growth in Oct-Mar

 

By Anand JC

 

MUMBAI – Commercial vehicle manufacturer Ashok Leyland Ltd.'s net profit and revenue for the September quarter exceeded analysts' expectations. The company's revenue grew at a four-quarter year-on-year high on the back of a rise in despatches of medium-heavy commercial vehicles and light commercial vehicles, in addition to the bus industry growing for the 18th consecutive quarter.

 

Ashok Leyland reported a net profit of INR 7.71 billion for the quarter, a wee bit higher than INR 7.70 billion reported a year ago. Analysts had expected the company's bottom line to be INR 7.33 billion. Ashok Leyland's profit grew at the slowest rate in five quarters. 

 

The company earned a revenue of INR 95.88 billion for the September quarter, a shade over 9% up from INR 87.69 billion in the base quarter. Consensus estimates had pegged the company's top line at INR 95.77 billion.

"We continue to see stable demand in all segments of trucks and buses," Shenu Agarwal, managing director and chief executive officer of the company, said, according to a press release from Ashok Leyland. "The industry has posted growth, albeit modest, and we are anticipating to witness better growth in the second half (of the financial year)."

 

The Hinduja Group company's earnings before interest, tax, depreciation, and amortisation were INR 11.62 billion, up nearly 14% on year. Its EBITDA was also higher than the Street's expectation of INR 11.51 billion. Its EBITDA margin stood at 12.1%, up from 11.6% in the year-ago quarter.

 

"Margin expansion is being driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement," Agarwal said. "We believe we are well positioned to achieve our mid-teen EBITDA goal in the medium term."

 

Ashok Leyland sold 26,307 medium-heavy commercial vehicles in the September quarter, up 3% on year. Its domestic market share in this segment remained over 30%, as per the company's release. 

 

Light commercial vehicle sales grew 6% on year to INR 17,697 units. "The Company maintained its market leadership in the Bus segment. The LCV domestic market share in the addressable segments has also improved," it said. The company did not quantify its domestic market share in the light commercial vehicle segment in its press release.

 

The company sold 4,784 vehicles abroad in the September quarter, up 45% on year. "In the International business we are intensifying our expansion strategy in our focus markets of Middle East (West Asia), Africa and SAARC (South Asian Association for Regional Cooperation)," Ashok Leyland Chairman Dheeraj Hinduja said. Its electric vehicle business Switch Mobility has an order book of nearly 1,500 vehicles and is "performing well", Hinduja said.

 

Ashok Leyland expects its defence, power solutions, and aftermarket businesses to post good growth in the financial year 2025-26 (Apr-Mar).

 

EXPENSE PROFILE

Like its top line, Ashok Leyland's expenses, too, grew at the fastest rate in four quarters. The company's expenses totalling INR 86.40 billion for the September quarter, up 8% on year. Expenses under all heads grew year-on-year, including input costs, which account for roughly 72% of the company's overall costs.

 

Cost of materials consumed rose nearly 8% on year to INR 62.10 billion. Other expenses grew nearly 5% on year to INR 9.55 billion while staff costs grew just over 8% on year to INR 6.48 billion.

 

HALF-YEAR SHOWING

Ashok Leyland's net profit for the first six months of FY26 grew to INR 13.65 billion, up just over 5% on year. Its revenue from operations for the period stood at INR 183.13 billion, up a touch over 5% on year.

 

The company's board has recommended paying shareholders an interim dividend of INR 1 per share, which will be doled out on or before Dec. 11. The record date to ascertain eligible shareholders is Nov. 18. At 1442 IST, shares of the company were down 1.8% at INR 143.34 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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