Ashok Leyland Q3 net profit rises 4.5% to Rs 796 crore; revenue jumps 22%

Ashok Leyland

• Ashok Leyland Q3 FY26 net profit up 4.5 percent to Rs 796.02 crore
• Revenue rose 21.63% to Rs 11,477.51 crore due to strong volume growth.
• MHCV and LCV volumes outpaced industry, boosting market share and exports

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Commercial vehicle major Ashok Leyland reported a 4.5 percent year-on-year rise in consolidated net profit to Rs 796.02 crore for the quarter ended December 2025 (Q3 FY26), driven by robust volume growth across segments and improved operational performance.

The company had posted a net profit of Rs 761.98 crore in the corresponding quarter last year.

Revenue from operations surged 21.63 percent to Rs 11,477.51 crore during the reporting quarter, compared with Rs 9,435.44 crore in Q3 FY25, reflecting strong demand momentum in both domestic and export markets.

Ashok Leyland reported its highest-ever third-quarter EBITDA at Rs 1,535 crore, marking a 27 percent increase over the year-ago period, underscoring improved operating leverage and cost efficiencies.

Volume Growth Outpaces Industry

Medium and heavy commercial vehicle (MHCV) volumes stood at 32,929 units in Q3 FY26, up 23 percent from 26,692 units in the same quarter last year. The growth outpaced overall industry expansion, resulting in a gain in market share.

Light commercial vehicle (LCV) volumes rose 30 percent to 20,518 units, compared with 15,754 units in Q3 FY25. This growth too was higher than industry volume growth, as per VAHAN data, enabling the company to strengthen its market position.

Exports registered a 20 percent increase, with volumes rising to 4,965 units from 4,151 units in the year-ago quarter.

Stronger Balance Sheet

The company’s net cash position improved significantly to Rs 2,619 crore at the end of December 2025, compared with Rs 958 crore at the end of Q3 FY25, reflecting stronger cash generation and disciplined capital management.

Outlook Remains Positive

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said market conditions remain favourable and expressed optimism about sustained momentum across segments.

“Market conditions continue to be favourable, and we are optimistic that this strength will sustain in the medium term across all our businesses, including MHCV, LCV, and Defence,” Hinduja said.

He added that the company is executing a structured pipeline of product launches across conventional and alternative propulsion platforms to reinforce its domestic leadership and accelerate international expansion.

“Our electric vehicle arm, Switch, has a healthy order book and a well-defined product roadmap. It has started delivering buses in international markets and has achieved positive EBITDA and PAT over the first nine months,” Hinduja said.

With strong volume growth, record quarterly EBITDA, and an improved cash position, Ashok Leyland appears well-positioned to capitalise on favourable market dynamics in the quarters ahead.