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.

Ashok Leyland Limited has issued a regulatory clarification to stock exchanges dismissing media speculation following a news article published in Economic Times on February 11, 2026. The company filed the clarification under Regulation 30(11) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Response to Media Speculation

In its communication to both National Stock Exchange of India Limited and BSE Limited dated February 12, 2026, Ashok Leyland stated that it does not respond to such speculations as a matter of company policy. The clarification was signed by N Ramanathan, Company Secretary, and addressed concerns raised by the exchanges regarding the news article.

Share Price Movement Clarification

The company specifically addressed market movements, stating that share price changes during the day have no connection whatsoever to the media speculation. Ashok Leyland emphasized its commitment to transparent disclosure practices, noting that it always promptly discloses any material information requiring regulatory disclosure and will continue to do so in the future.

Regulatory Communication Details

Company's Disclosure Policy

Ashok Leyland reiterated its commitment to regulatory compliance and transparent communication with stakeholders. The company requested exchanges to disregard any misleading information that may have been circulated in the media and emphasized its policy of making timely disclosures under applicable regulatory requirements.

The clarification serves as a formal response to exchange queries and reinforces the company's stance on maintaining proper disclosure protocols while dismissing unsubstantiated market speculation.