Madras Times - Ashok Leyland Q2 Profit Rises 8.7% to ₹891 Crore on Strong MHCV Demand

Ashok Leyland Ltd reported an 8.7 percent increase in consolidated net profit to ₹891 crore for the second quarter ended September 2026, compared with ₹820 crore in the same period last year. Consolidated revenue from operations rose 35 percent to stand at ₹17,030 crore during the quarter.

The financial performance was driven by a significant expansion in vehicle sales, particularly within the Medium and Heavy Commercial Vehicle (MHCV) segment. The company stated that its total commercial vehicle volumes increased 32 percent to 64,677 units, up from 49,116 units in the corresponding quarter of the previous year. In the MHCV segment specifically, volumes surged 44 percent year-on-year to 37,958 units. Light Commercial Vehicle (LCV) volumes also grew by 21 percent to 21,371 units.

Despite the revenue growth, profitability was partially offset by rising input costs. The cost of materials and services consumed increased by 45 percent to ₹9,899 crore. On a standalone basis, Ashok Leyland’s net profit rose 13 percent to ₹869 crore, while standalone revenue grew 39 percent to ₹13,364 crore.

The company also reported gains in market share and international sales. Ashok Leyland achieved a domestic truck market share of 31.5 percent, representing a gain of 150 basis points for the quarter, excluding defense vehicles. The firm noted it maintained its market position in the bus segment, excluding electric buses. Export volumes for the quarter reached 5,102 units, marking a 7 percent year-on-year increase.

Dheeraj Hinduja, Chairman of Ashok Leyland, attributed the results to the company's business fundamentals and product portfolio. "Our record Q2 performance reflects the strength of Ashok Leyland’s business fundamentals, competitive product portfolio and strong customer focus," Hinduja said in a statement. He added that the company is encouraged by the performance of its international business and continues to strengthen its presence in key export markets.

Shenu Agarwal, Managing Director and CEO, highlighted the consistency of the company's financial health. He noted that the record Q2 performance, combined with market share gains and fifteen consecutive quarters of double-digit EBITDA margins, reflects a focus on profitable growth.

In addition to operational results, the Board of Directors of Ashok Leyland Ltd declared an interim dividend of ₹1 per share.

The financial report also included data for Swelect Energy, a subsidiary. Swelect Energy reported a 90 percent drop in profit after tax (PAT) to ₹1.9 crore for the quarter. Its revenue from operations decreased to ₹126 crore from ₹139 crore in the year-ago period.

J.Khan--MT