Ashok Leyland , the Indian flagship of the Hinduja Group, has reported strong financial results for the second quarter, with profit before tax (PBT) growing 23% year-over-year to Rs 1,083 crore. The company also announced a 100% interim dividend of Rs 1 per share.

Key Financial Highlights

• Profit after tax (PAT) reached Rs 771 crore
• EBITDA margin improved to 12.1% from 11.6% in the same quarter last year
• Revenue from operations increased to Rs 9,588.18 crore, up from Rs 8,768.83 crore in the previous year's corresponding quarter

Segment Performance

Both the Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments witnessed positive growth:

• MHCV volumes increased by 3% year-over-year to 26,307 units
• LCV volumes grew by 6% to 17,697 units
• The bus industry continued its growth trend

Ashok Leyland maintained its market leadership in the bus segment and improved its domestic market share in the MHCV segment, which remains over 30%.

Export and Other Business Segments

The company reported growth in exports, with volumes reaching 4,784 units, a 45% increase year-over-year. The Defence, Power Solutions, and Aftermarket businesses also continued to perform well.

Product Expansion and Distribution

During the quarter, Ashok Leyland expanded its product lineup by launching new offerings in the Tipper, Bus, Haulage, and LCV segments. The company's distribution network expansion is progressing ahead of schedule.

Management Commentary

Mr. Dheeraj Hinduja, Chairman of Ashok Leyland, commented on the results: "We continue to deliver profitable growth, driven by continuing demand. Our robust all-round performance symbolizes the competitiveness of our products and strong customer focus. In the International business, we are intensifying our expansion strategy in our focus markets of Middle East, Africa, and SAARC."

Mr. Shenu Agarwal, Managing Director & CEO, added: "We continue to see stable demand in all segments of trucks and buses. The industry has posted growth, albeit modest, and we are anticipating to witness better growth in the second half. Ashok Leyland has achieved its eleventh consecutive quarter of double-digit EBITDA. Our focus on profitability is reflected in record PAT for the quarter and higher EBITDA margins, both sequentially and year-on-year."

Future Outlook

The management expressed confidence in the company's positioning to achieve its mid-teen EBITDA goal in the medium term. They also highlighted that margin expansion is being driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement.

Ashok Leyland's strong performance in the second quarter, coupled with its strategic initiatives and positive industry outlook, positions the company well for continued growth in the commercial vehicle sector.

Ashok Leyland , the Indian flagship of the Hinduja Group, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating strong growth and profitability.

Financial Highlights

• Profit Before Tax (PBT) before exceptional items rose 23% year-over-year to Rs. 1,083.00 crore
• Profit After Tax (PAT) reached an all-time high of Rs. 771.00 crore
• EBITDA margin improved to 12.1% from 11.6% in the same quarter last year
• Revenue from operations increased to Rs. 9,588.18 crore, up from Rs. 8,728.47 crore in Q2 FY25

Operational Performance

The company witnessed positive growth across its key segments:

• Medium and Heavy Commercial Vehicle (MHCV) volumes grew 3% year-over-year
• Light Commercial Vehicle (LCV) volumes increased 6% compared to the same period last year
• Bus segment continued its strong performance, growing for the 18th consecutive quarter
• Export volumes surged by 45% to 4,784 units

Ashok Leyland maintained its market leadership in the domestic MHCV segment with a share of over 30% and continued to lead in the Bus segment. The company also reported improved market share in the addressable LCV segments.

Product and Network Expansion

During Q2, Ashok Leyland expanded its product lineup by launching new offerings in the Tipper, Bus, Haulage, and LCV segments. The company's distribution network expansion is progressing ahead of schedule, further strengthening its market presence.

Dividend Announcement

In light of the improved fiscal performance and positive outlook, the Board of Directors has recommended a 100% interim dividend of Rs. 1.00 per share (face value Re. 1).

Management Commentary

Mr. Dheeraj Hinduja, Chairman of Ashok Leyland, commented on the results: "We continue to deliver profitable growth, driven by continuing demand. Our robust all-round performance symbolizes the competitiveness of our products and strong customer focus. In the International business, we are intensifying our expansion strategy in our focus markets of Middle East, Africa, and SAARC."

Mr. Shenu Agarwal, Managing Director & CEO, added: "We continue to see stable demand in all segments of trucks and buses. The industry has posted growth, albeit modest, and we are anticipating better growth in the second half. Ashok Leyland has achieved its eleventh consecutive quarter of double-digit EBITDA. Our focus on profitability is reflected in record PAT for Q2FY26 and higher EBITDA margins, both sequentially and year-on-year."

Future Outlook

The company remains optimistic about its future performance, citing several key drivers:

• Margin expansion through product premiumization and network growth
• Operational efficiency and cost optimization initiatives
• Digital enablement across operations
• Strong performance in Defence, Power Solutions, and Aftermarket businesses
• Positive momentum in the international business
• Growing order book for Switch Mobility, with nearly 1,500 vehicles

Ashok Leyland's management believes the company is well-positioned to achieve its mid-teen EBITDA goal in the medium term while maintaining a cash-positive position.

The strong Q2 results and positive outlook underscore Ashok Leyland's resilience and growth potential in the commercial vehicle market, both domestically and internationally.