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Business Standard
3 days ago
- Automotive
- Business Standard
Ashok Leyland Q1 profit rises 19% on record CV sales, cost control
Commercial vehicle major Ashok Leyland posted a 19 per cent rise in net profit for the first quarter of FY26 to ₹657.72 crore, compared with ₹550.65 crore in April–June FY25, driven by its highest-ever quarterly commercial vehicle (CV) volumes, effective market execution, and rigorous cost management, the company said on Thursday. Revenue from operations for the period stood at ₹11,708.54 crore, up 9.5 per cent from ₹10,696.8 crore in the same quarter last year. Total expenses rose 9.3 per cent to ₹10,920.53 crore, against ₹9,994.97 crore a year earlier. The board on Thursday approved investments of around ₹300 crore in its e-Mobility as a Service (EMaaS) subsidiary Ohm Global Mobility, and another ₹5.7 crore in the bus body and coach-building arm Vishwa Buses and Coaches (VBCL). 'Ashok Leyland has delivered a robust Q1 performance, exceeding expectations through effective market execution while maintaining rigorous cost management. For the tenth quarter in a row, we have registered double-digit EBITDA margin,' said Dheeraj Hinduja, chairperson, Ashok Leyland. EBITDA for Q1 FY26 was ₹970 crore, with a margin of 11.1 per cent, compared with ₹911 crore and 10.6 per cent in Q1 FY25. The company remained cash positive at the end of Q1 FY26 at ₹821 crore. 'Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive EBITDA. We are redoubling our efforts in the international markets and Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry,' he added. Ashok Leyland recorded its highest-ever quarterly CV volumes of 44,238 units in the first quarter. The domestic medium and heavy commercial vehicle (MHCV) industry remained largely flat on the high base of last year's Q1. Ashok Leyland's MHCV truck volumes (excluding Defence) grew 2 per cent, with its year-on-year market share rising from 28.9 per cent to 30.7 per cent. MHCV bus total industry volume (excluding EVs) grew 5 per cent, with Ashok Leyland maintaining its domestic market leadership in MHCV buses. 'We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future-ready technologies,' said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland. Light commercial vehicle (LCV) domestic Q1 volume at 15,566 units was the highest ever for the quarter. Export volume grew 29 per cent year-on-year to 3,011 units. 'We don't have any impact as a result of this tariff. Exports in Q1 were at an all-time high mainly due to West Asia, SAARC, and Africa. This year, we could achieve the highest sales in the export market,' Hinduja added.
Business Standard
3 days ago
- Automotive
- Business Standard
Ashok Leyland gains after Q1 PAT rises 13% YoY to Rs 594 cr
Ashok Leyland added 1.17% to Rs 121.10 after the company reported a 12.96% rise in standalone net profit to Rs 593.73 crore in Q1 FY26, compared to Rs 525.58 crore posted in Q1 FY25. Revenue from operations increased 1.46% year-on-year (YoY) to Rs 8,724.51 crore in the quarter ended 30 June 2025. Profit before tax (PBT) stood at Rs 797.73 crore in Q1 FY26, marking a growth of 13.72% over Rs 701.44 crore reported in the same quarter last year. EBITDA rose by 6.47% YoY to Rs 970 crore in Q1 FY26. The EBITDA margin also improved to 11.1% in Q1 FY26, up from 10.6% reported in Q1 FY25. The Company continues to be cash positive at end of Q1 FY26 at Rs 821 crore. The company stated that the domestic medium and heavy commercial vehicle (MHCV) industry remained almost flat due to the high base in last years Q1. Ashok Leylands MHCV truck volumes (excluding Defence) grew by 2%, with its year-on-year market share increasing from 28.9% to 30.7%. The MHCV bus total industry volume (excluding electric vehicles) grew by 5%, with Ashok Leyland maintaining its domestic market leadership position in MHCV buses. Light commercial vehicle (LCV) domestic volumes reached an all-time high for Q1 at 15,566 units. Export volumes grew 29% YoY to 3,011 units. Additionally, the companys Power Solutions, Aftermarket, and Defence businesses contributed strongly to the overall financial performance. Dheeraj Hinduja, chairman, Ashok Leyland, said "Ashak Leyland has delivered a robust Ql performance, exceeding the expectations through effective market execution while maintaining rigorous cast management. Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive EBITDA. We are redoubling our efforts in the international markets and Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to playa pivotal role in our industry. " Shenu Agarwal, Managing Directar & CEO, Ashok Leyland, added, "We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future -ready technologies." Meanwhile, the companys board has approved the investments in its wholly owned subsidiaries, subject to requisite approvals and other regulatory requirements. These include an investment of up to Rs 5.70 crore in Vishwa Buses and Coaches, as equity, to be made in one or more tranches, and an investment of up to Rs 300 crore in Ohm Global Mobility, also as equity and to be made in one or more tranches. Ashok Leyland is engaged in the manufacture and sale of a wide range of commercial vehicles. The company also manufactures engines for industrial and marine applications, forgings, and castings.
Economic Times
3 days ago
- Automotive
- Economic Times
Ashok Leyland Q1 Results: Net profit jumps 13% to Rs 594 crore; revenue up 1.5%
Ashok Leyland on Thursday reported a standalone net profit of Rs 593.73 crore for Q1 FY26, up 13% year-on-year (YoY) from Rs 525.58 crore in the year-ago period. ADVERTISEMENT Standalone revenue from operations for the quarter ended June 2025 stood at Rs 8,724.51 crore, a marginal 1.5% rise YoY compared to Rs 8,598.53 crore in the June 2024 quarter. On a consolidated basis, the Hinduja Group's flagship reported a net profit attributable to owners of the company at Rs 611.07 crore, marking a 20% YoY jump from Rs 509.15 crore in the corresponding quarter last year. The quarter marked Ashok Leyland's highest-ever commercial vehicle volumes at 44,238 units and its highest Q1 revenue at Rs 8,725 crore. The company also posted record EBITDA and profit after tax at Rs 970 crore and Rs 594 crore, respectively, compared with Rs 911 crore and Rs 526 crore a year domestic medium and heavy commercial vehicle (MHCV) industry was largely flat on last year's high base, but Ashok Leyland's MHCV truck volumes (excluding defence) rose 2%, lifting its market share from 28.9% to 30.7% YoY. In buses, the MHCV segment (excluding electric vehicles) expanded 5%, with the company maintaining its leadership commercial vehicle (LCV) volumes for the quarter touched an all-time Q1 high at 15,566 units, while exports surged 29% to 3,011 units. The Power Solutions, Aftermarket, and Defence businesses also contributed strongly to the performance. EBITDA margin improved to 11.1% in Q1 FY26 from 10.6% a year earlier, with the company remaining cash-positive at Rs 821 crore at the quarter's end. ADVERTISEMENT 'Ashok Leyland has delivered a robust Q1 performance, exceeding expectations through effective market execution while maintaining rigorous cost management,' said Dheeraj Hinduja, Chairman. Unlock 500+ Stock Recos on App 'Our electric mobility subsidiary, Switch Mobility, continues to gain traction and has achieved positive EBITDA. We are redoubling our efforts in international markets and the Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry,' he added. ADVERTISEMENT Shenu Agarwal, Managing Director & CEO, said, 'We are happy to report simultaneous increases in market share and operating margins... Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row.'The company said its key goal is to achieve mid-teen EBITDA margins over the medium term while continuing to develop future-ready technologies. ADVERTISEMENT Also read | Paytm shares up 17% so far in 2025. Should you ride the rally or wait for a dip? (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Business Upturn
3 days ago
- Automotive
- Business Upturn
Ashok Leyland Q1 Results: Shares jump over 2% as Q1 earnings meets street estimates; posts record Q1 volumes and revenue
Shares of Ashok Leyland climbed 2.36% to ₹122.55 on the NSE by 12:55 PM on Wednesday, following the release of its Q1 FY26 results that closely aligned with market expectations. The company reported a net profit of ₹594 crore, marginally higher than the estimate of ₹593 crore, and up from ₹526 crore in the same quarter last year. Revenue came in at ₹8,725 crore, compared to the expected ₹8,822 crore and ₹8,599 crore in Q1 FY25. EBITDA stood at ₹970 crore versus the estimated ₹974 crore, while margins were steady at 11%, matching Street projections. Analysts had anticipated a 13% YoY rise in standalone profit, aided by improved volumes and realisations. The topline growth of 1.5% YoY, although slightly below estimates, was supported by steady demand in the commercial vehicle segment. At 12:55 PM, Ashok Leyland's market capitalisation stood at ₹35,636 crore. The stock traded between ₹119.29 and ₹121.73 during the day, with a year's range of ₹95.93 to ₹132.32. The scrip's P/E ratio is 22.97, with a dividend yield of 2.58%. The Indian flagship of the Hinduja Group reported its highest-ever quarterly performance in Q1 FY26, with commercial vehicle (CV) volumes hitting 44,238 units and revenue reaching Rs 8,725 crore. The company also posted record EBITDA and PAT of Rs 970 crore (up from Rs 911 crore YoY) and Rs 594 crore (up from Rs 526 crore YoY) respectively. Domestic medium and heavy commercial vehicle (MHCV) truck volumes, excluding defence, rose 2% YoY, lifting market share from 28.9% to 30.7%. MHCV bus TIV (excluding EVs) grew 5%, reinforcing the company's leadership in the segment. Light commercial vehicle (LCV) sales also reached an all-time high for Q1 at 15,566 units, while exports surged 29% YoY to 3,011 units. Strong performances in Power Solutions, Aftermarket, and Defence divisions further boosted results. EBITDA margin improved to 11.1% from 10.6% YoY. The company ended the quarter with Rs 821 crore in cash and remains cash positive. Chairman Dheeraj Hinduja credited the strong showing to efficient market execution and cost management, noting that electric mobility arm Switch Mobility has maintained positive EBITDA and continues to gain traction. Managing Director & CEO Shenu Agarwal highlighted sustained market share gains and profitability, with the company aiming for mid-teen EBITDA margins in the medium term. Ahmedabad Plane Crash
Time of India
29-05-2025
- Automotive
- Time of India
Industry smells a jackpot as India's truck fleet hits 10-yr high
India's ageing fleet of medium and heavy commercial vehicles (M&HCVs) is expected to trigger a significant rise in replacement demand, as truck makers and analysts see fleet operators shifting towards newer, more efficient models with better technology and faster turnaround times. According to data from manufacturers and ratings agency ICRA , the average age of M&HCV trucks on Indian roads has touched a record high of 10 years. This is the highest it has been in two decades. The sharp increase in fleet age is a result of deferred truck purchases during the Covid-19 pandemic and weak sales in recent years. 'The elevated level of vehicle ageing was fuelled by deferment of new vehicle purchases by fleet owners during the pandemic period, and also with the domestic M&HCV (trucks) volumes staying flattish YoY in FY2024 and registering a 4% YoY decline in FY2025,' ToI cited Kinjal Shah, senior vice-president at ICRA. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Small Electric Car for Seniors in Iraq: Prices That Will Surprise You Electric Cars | Search Ads Undo 'With this, the average M&HCV vehicle age presently remains the highest in the past two decades, which along with the mandatory scrapping of govt vehicles older than 15 years from April 1, 2023, augurs well for replacement demand in the medium term,' she added. Manufacturers have already begun to prepare for what they expect to be a surge in demand. Shenu Agarwal, managing director and CEO of Ashok Leyland , said, 'The outlook for the truck industry in FY26 takes into account the all-time high ageing of the truck fleet which means fleet replacement will definitely happen.' He added that the expected increase in demand will be led by the M&HCV segment, 'because the fleet is higher vintage there.' Live Events Industry data suggests that between FY2010 and now, around 37 lakh trucks have been sold across BS0 to BS6 emission levels. In just the last four years, about 10 lakh BS6 trucks have entered the market, while another 8.5 lakh units of BS4 vehicles continue to operate. That means for nearly 50% of the trucks sold in the last 15 years, the average age is over 11 years — a clear indicator that a large chunk of India's commercial fleet is nearing the end of its useful life and ripe for replacement. Vinod Aggarwal, managing director and CEO of Volvo Eicher Commercial Vehicles , said, 'Replacement demand will be very strong particularly since with improved road infrastructure, the new trucks are running around 15,000 km to 20,000 km per month compared to around 8,000 km to 10,000 km that older trucks manage.' He also pointed out that newer trucks, equipped with telematics, are designed for more intensive use and faster turnaround times, which further increases their appeal. At present, replacement sales account for 60% of all medium and heavy truck purchases. While total sales in the segment have not yet rebounded to their peak of 2,95,000 units recorded in FY2019 — with FY2025 sales at 2,48,000 units — there are signs of improvement. 'The M&HCV segment is migrating towards higher tonnage and payload wise FY25 truck sales is 10% higher,' said Aggarwal. (with ToI inputs)
