Shares of Ashok Leyland climbed 7 percent to Rs 130 apiece on August 18 after the company reported an in-line set of June quarter (Q1FY26) numbers. The Street cheered its steady operating performance, with brokerages turning positive on the counter and projecting further gains of up to 15 percent from the day’s high.
UBS reiterated a “buy” call on the stock with a target price of Rs 150, highlighting that the company delivered a margin beat on the back of operational discipline. The brokerage noted that medium and heavy commercial vehicle (MHCV) growth is expected in mid-single digits, while light commercial vehicle (LCV) growth could be slightly better.
International markets, which continue to perform well, are expected to sustain momentum. Importantly, Switch Mobility – Ashok Leyland’s EV arm – turned profit before tax (PBT) positive in the June quarter.
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Choice Broking also maintained a “buy” rating on the counter with a Rs 150 target, citing the company’s aggressive product pipeline.
Ashok Leyland has lined up launches in the higher horsepower MHCV category, including 280–360 HP tippers, tractor trailers, and multi-axle vehicles, to cater to demand from mining, construction, and logistics sectors. A new bi-fuel LCV product is also in the works for large metros, along with upgraded offerings for global markets.
“We believe these differentiated offerings will help Ashok Leyland strengthen pricing power, customer stickiness, and competitive positioning. With demand revival expected post-monsoon and a strong infrastructure push from the government, the company’s expanded product pipeline positions it for sustainable growth,” said Choice Broking.
On the financial front, Ashok Leyland reported a net profit of Rs 594 crore in the June quarter, up 13 percent from Rs 526 crore in the year-ago period. Revenue rose 1.5 percent to Rs 8,725 crore compared to Rs 8,599 crore last year.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 970 crore, up 6.6 percent from Rs 911 crore a year ago. Margins remained in line with estimates at 11 percent, expanding from 10.6 percent in the same quarter last year, aided by cost control and favourable pricing.
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