Revenue and Volume
Ashok Leyland's operational revenue for the second quarter of fiscal year 2026 experienced a rise of 9.3%, reaching ₹9,588.18 crore compared to ₹8,768.83
crore in the same period the previous year. The company observed a 3% increase in sales volume within the MHCV segment, which went from 25,542 to 26,307 units. The LCV segment also saw an uptick, with a 6% rise in volume, moving from 16,629 to 17,697 units year-on-year. Both the MHCV and LCV sectors saw favorable growth during this quarter. The company’s focus on the Defence, Power Solutions, and Aftermarket Businesses shows promising expansion and is predicted to sustain high growth throughout the fiscal year. These figures underscore Ashok Leyland's consistent performance and strategic growth in key operational areas.
Profitability and Margins
At the operational level, the earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 14.2% in the September quarter, reaching ₹1,162 crore compared to ₹1,017 crore. The EBITDA margin improved to 12% from 11.6% year-on-year. This enhancement was driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement. Ashok Leyland's management anticipates achieving their mid-teen EBITDA target in the medium term and emphasizes their positive cash position. This sustained profitability reflects the company's robust operational strategies and financial management.
Market Position
Ashok Leyland continues to maintain a strong presence in the market. The company’s domestic MHCV market share is consistently above 30%, and it retains its leadership position within the Bus segment. Moreover, the domestic market share within the LCV addressable segments has also improved. The management indicated stable demand across all truck and bus segments. While industry growth has been modest, the company anticipates stronger performance in the second half of the fiscal year. The company's achievement of eleven consecutive quarters of double-digit EBITDA demonstrates its resilience and strategic focus within a competitive market landscape.
Export and Dividend
Export volumes for the quarter were significant, with 4,784 units sold, representing a 45% growth year-on-year. In addition, the Board of Directors declared an Interim Dividend of Re 1 per equity share, with a face value of Re 1 each, for the financial year ending 2025-26. This dividend will be distributed on or before December 11, 2025. The record date for determining the eligible members for this interim dividend is set for Tuesday, November 18, 2025. These announcements highlight the company's commitment to delivering value to shareholders and its continued focus on growth in both domestic and international markets.
Financial Outcome
For the second quarter of fiscal year 2026, Ashok Leyland reported a standalone net profit of ₹771.06 crore. This reflected a minor increase of 0.13% compared to ₹770.10 crore in the corresponding period of the previous fiscal year. At 2:10 PM, Ashok Leyland's share price was trading 1.27% lower at ₹144.20 apiece on the BSE. These financial results showcase the company's consistent performance, amidst minor fluctuations, indicating stability and ongoing efforts to maintain profitability and shareholder value.
