Ashok Leyland (ASHOKLEY) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 revenue of INR 8,725 crore, up 1.5% YoY, with net profit at INR 594 crore, up 13% YoY, and EBITDA at INR 970 crore, all-time Q1 highs.

• Q1 volumes reached 44,238 units, with market share gains in MHCV (up to 31.1%) and LCV; export volumes rose 29% YoY.

• Power Solutions, Aftermarket, and Defence businesses contributed strongly to financial performance.

• EBITDA margin improved by 50 bps YoY to 11.1%; net cash position improved by INR 2,000 crore YoY.

• Company remains cash positive with INR 821 crore at the end of Q1 FY26.

Financial highlights

• Standalone revenue from operations for Q1 FY26 was INR 8,724.51 crore, up from INR 8,598.53 crore in Q1 FY25.

• Standalone net profit for Q1 FY26 was INR 593.73 crore, compared to INR 525.58 crore in Q1 FY25.

• Consolidated revenue from operations for Q1 FY26 was INR 11,708.54 crore, up from INR 10,696.80 crore in Q1 FY25.

• Finance subsidiaries' AUM: HLF at INR 50,430 crore, HSF at INR 14,265 crore, both up 25% YoY; consolidated NNCA at 1.63%.

• Book value for finance subsidiaries at INR 7,222 crore; total income at INR 1,855 crore.

Outlook and guidance

• Optimistic for volume and margin uptrend in H2 FY2026, supported by new product launches and improved macro factors.

• Full-year outlook: mid-single-digit growth for MHCV, slightly higher for LCV; strong export momentum expected to continue.

• Defense segment expected to post double-digit revenue growth in FY2026.

• Management targets mid-teen EBITDA margins in the medium term and focuses on profitable growth and international expansion.

• Ongoing evaluation of compliance with new End-of-Life Vehicle (ELV) rules, with financial impact yet to be determined.