Ashok Leyland Limited has completed the voluntary liquidation of its step-down subsidiary Ashok Leyland West Africa SA, as disclosed to stock exchanges on February 19, 2026. The commercial vehicle manufacturer informed both NSE and BSE about this corporate restructuring move under SEBI LODR Regulation 30 disclosure requirements.

Subsidiary Liquidation Details

The liquidation process involved Ashok Leyland West Africa SA, which operated as a step-down subsidiary of the company. According to the regulatory filing, this entity was classified as a non-material subsidiary, indicating its limited operational significance within the group's overall business structure.

Impact Assessment

The company has clarified that the liquidation will have no quantitative or qualitative effects on its operations. Following completion of the liquidation process, Ashok Leyland West Africa SA has ceased to be a step-down subsidiary of the parent company. The regulatory disclosure confirms that no benefits will accrue to promoters, promoter groups, or other group companies from this liquidation.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Para A of Part A of Schedule III of SEBI LODR regulations. Company Secretary N Ramanathan signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for material events affecting subsidiary companies.

The liquidation represents a streamlining of Ashok Leyland's international subsidiary structure, with the West African operations being wound down through proper regulatory channels. The company has confirmed that no changes to shareholding patterns across entities will result from this corporate action.

Ashok Leyland delivered exceptional third quarter FY26 results, achieving record-breaking performance across all financial metrics while gaining significant market share in both medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments. The strong performance reflects the company's ability to capitalize on favorable market conditions triggered by GST rate rationalization and robust freight demand.

Record Financial Performance

The company reported its highest-ever Q3 financial results across multiple parameters. Revenue reached INR11,534 crores, marking a substantial 21.7% increase compared to the same quarter last year. This growth was accompanied by strong profitability improvements, with EBITDA climbing to INR1,535 crores, representing a 26.7% year-on-year increase.

The company faced a one-time charge of INR308 crores during the quarter due to new Labour Code implementation. Despite commodity headwinds, particularly in non-ferrous metals including PGM, copper, and aluminium, the company maintained strong margin performance.

Strong Volume Growth and Market Share Gains

Ashok Leyland demonstrated robust operational performance with volume growth outpacing industry expansion across key segments. The domestic MHCV segment recorded 23.4% year-on-year volume growth, surpassing the industry growth rate of 21%. This strong performance translated into market share gains, with the company achieving 30.9% domestic MHCV market share on a year-to-date basis, representing a 60 basis points improvement.

The LCV segment performance was particularly impressive, with domestic volumes growing 30% year-on-year to 20,518 units, significantly outperforming the industry growth of 23%. The company's LCV market share reached 12.1% in Q3, gaining 70 basis points year-on-year.

Product Innovation and Market Expansion

The company continued its focus on product differentiation and premiumization through strategic launches. Recent introductions include the HIPPO tractor and TAURUS tipper range featuring industry-best power and torque specifications. These heavy-duty trucks offer superior powertrain options of 320 HP and 360 HP with enhanced driveline aggregates designed to deliver improved uptime and total cost of ownership.

In the LCV segment, Ashok Leyland launched the new 4.1-ton Bada Dost with industry-best payload capacity and expanded load span options up to 10 feet 7 inches. The company also introduced a 100 KMPH Bada Dost variant for international markets, strengthening its export portfolio.

Non-CV Business Growth

The company's diversification strategy showed positive results with strong growth across non-commercial vehicle businesses. Aftermarket revenues increased 10% year-on-year, while Power Solutions business revenue surged 45% year-on-year. The defense business segment recorded exceptional growth of 84% year-on-year, supported by a robust order book and strong tender pipeline.

Subsidiary Performance and Strategic Initiatives

Switch India, the company's electric vehicle subsidiary, continued its positive trajectory with 850 buses and approximately 1,200 electric LCVs sold during the nine-month period, achieving positive EBITDA and PAT. The subsidiary maintains a current order book of 1,350 units and has expanded into exports with deliveries to Mauritius and orders from Bhutan.

OHM, the E-MaaS subsidiary, expanded its operating fleet to more than 1,400 electric buses, adding over 300 buses in Q3. The company maintains its investment commitment of INR600 crores for OHM, with INR300 crores already invested and another INR300 crores earmarked for future requirements.

Market Outlook and Strategic Positioning

Management expressed confidence in sustained industry momentum, citing favorable macroeconomic conditions and the potential for a new replacement cycle. The GST rate rationalization has created positive sentiment among both retail and bulk buyers, with the average fleet age reaching 10-10.5 years, indicating significant replacement demand potential. The company's strong financial position, with net cash of INR2,619 crores, provides flexibility to capitalize on growth opportunities while maintaining its market leadership position.