Ashok Leyland (ASHOKLEY) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw strong growth in both MHCV and LCV segments, supported by GST rate cuts and robust demand, with expansion into battery manufacturing and greener technologies.

• Domestic MHCV market share rose to 31% in H1, up 50 bps YOY, and LCV market share increased to 13.2%, up 0.9% YOY.

• Export volumes surged 45% YOY in Q2, with growth across GCC, Africa, and SAARC markets, reaching 4,784 units.

• Subsidiaries Switch India and OHM reported positive EBITDA and PAT, with Switch India targeting free cash flow positivity by FY27.

• Interim dividend of ₹1 per share declared, payable on or before December 11, 2025.

Financial highlights

• Q2 revenue reached ₹9,588 crore, up 9.3% YOY; consolidated revenue was ₹12,577 crore, up from ₹11,148 crore.

• Q2 PBT was ₹1,083 crore, up 23% YOY; PAT stood at a record ₹771 crore.

• EBITDA margin improved to 12.1%, up 50 bps YOY; consolidated operating margin was 13.83%.

• Net cash position at end-Q2 was ₹1,000 crore, a positive swing of ₹1,500 crore YOY.

• Capex for Q2 was ₹417 crore; H1 capex totaled ₹658 crore.

Outlook and guidance

• Management remains optimistic for H2, expecting higher volumes and margin uptrend, with LCV segment benefiting most from GST cuts.

• Targeting 18,000 export units in FY26 and 25,000 units in the next 2-3 years, aiming for 20% CAGR in exports.

• New product launches in Q3/Q4, including higher horsepower trucks and premium buses, expected to support market share and margin gains.

• Company aims to achieve mid-teen EBITDA margins in the medium term.