Ashok Leyland Q2 Profit Rises 7% to ₹820 Crore in FY26

Introduction to Q2 FY26 Performance

Ashok Leyland Limited, the flagship company of the Hinduja Group, has reported a strong financial performance for the second quarter ended September 2025 (Q2 FY26). The commercial vehicle manufacturer announced a consolidated net profit of ₹820 crore, reflecting a 7% year-on-year (YoY) increase. This growth underscores the company's resilience and operational strength amidst varying market conditions.

Revenue and Profitability Analysis

The company’s consolidated revenue for the quarter grew by a robust 13% YoY, reaching ₹12,577 crore compared to ₹11,147.6 crore in the same period last year. On a sequential basis, total income saw a 7.7% quarter-on-quarter (QoQ) rise from ₹11,807.20 crore in Q1 FY26. This consistent top-line growth was primarily driven by strong demand for its Medium and Heavy Commercial Vehicles (M&HCVs), sustained momentum in Light Commercial Vehicles (LCVs), and an increase in export volumes.

Profitability metrics showed significant improvement. The Profit After Tax (PAT) for Q2 FY26 stood at ₹819.70 crore, marking a 6.9% YoY increase and a substantial 24.6% QoQ growth. The Profit Before Tax (PBT) was ₹1,115.97 crore, up 4.6% YoY and 25.9% QoQ. The Earnings Per Share (EPS) for the quarter was reported at ₹1.29.

Sustained Operational Excellence

A key highlight of the quarter was Ashok Leyland's ability to maintain its operational efficiency. The company delivered its 12th consecutive quarter of double-digit EBITDA margins. The EBITDA for Q2 FY26 rose 12% YoY to ₹1,162 crore. This performance was supported by strategic cost-control measures, an improved product mix favouring premium and alternate-fuel vehicles, and manufacturing efficiencies that helped mitigate input cost pressures.

Total expenses for the quarter increased by 10.5% YoY to ₹11,210.52 crore, a rate lower than the revenue growth, indicating effective cost management.

Financial Performance Summary for Q2 FY26

A Look Back at Record FY25 Performance

The strong quarterly results build upon a landmark financial year 2025. For the year ended March 31, 2025, Ashok Leyland achieved record numbers, with revenue reaching ₹38,753 crore. The company's PAT for FY25 stood at ₹3,303 crore, a significant 26% increase compared to ₹2,618 crore in the previous fiscal year. EBITDA for FY25 was 12.7% at ₹4,931 crore, up from 12.0% in FY24.

Strong Financial Health and Cash Position

A major financial milestone for Ashok Leyland was its transition to a strong net cash position. The company ended the financial year 2025 with net cash of ₹4,242 crore. This marks a substantial turnaround from a net debt of ₹89 crore at the end of the previous year, highlighting robust cash generation and disciplined financial management.

Management Outlook and Strategy

Company leadership remains optimistic about the future. Dheeraj Hinduja, Executive Chairman of Ashok Leyland, stated that the steady progress in profitability is supported by superior product performance and strong customer engagement. He also highlighted the growing momentum in international markets, which is expected to accelerate with new product launches.

Shenu Agarwal, Managing Director & CEO, described FY25 as a landmark year with new records in revenue, EBITDA, and profitability. He emphasized that the margin expansion and robust cash generation reflect the strength of the company's operations and its achievement of the medium-term goal of mid-teen EBITDA in Q4 FY25.

Conclusion

Ashok Leyland's Q2 FY26 results demonstrate its continued ability to deliver profitable growth. The company's focus on operational efficiency, cost optimization, and a favourable product mix has enabled it to sustain double-digit EBITDA margins and strengthen its balance sheet. With strong demand from key sectors like infrastructure and logistics, and a strategic focus on exports and defence, Ashok Leyland is well-positioned for sustained growth.