Ashok Leyland (ASHOKLEY) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw strong growth in MHCV and LCV segments, aided by GST rate cuts, increased freight demand, and strategic expansion into battery manufacturing and green technologies like CNG, LNG, and hydrogen.

• Profit before tax for Q2 FY26 rose 23% year-over-year to ₹1,083 crore, with PAT reaching an all-time high of ₹771 crore and EBITDA margin improving to 12.1% from 11.6% last year.

• Significant network expansion domestically and internationally, with a focus on Northeast and Central India, and ongoing international business growth in Middle East, Africa, and SAARC.

• Subsidiaries Switch India and OHM reported positive EBITDA and PAT, with robust order books and expansion plans.

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

Financial highlights

• Q2 standalone revenue at ₹9,588 crore, up 9.3% year-over-year; consolidated revenue at ₹12,577 crore.

• EBITDA reached ₹1,162 crore (14.2% YOY growth), with a margin of 12.1%; consolidated operating margin at 13.83%.

• Q2 PBT at ₹1,083 crore and PAT at ₹771 crore; consolidated net profit at ₹820 crore.

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

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

Outlook and guidance

• Optimistic for H2, expecting higher industry volumes and growth rates than H1, with management targeting mid-teen EBITDA margins in the medium term.

• LCV segment expected to outpace MHCV in growth, driven by GST cuts and retail demand.

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

• Exports targeted to reach 18,000 units in FY26 and 25,000 units in the next 2-3 years.