India's 2nd Largest Commercial Vehicle Manufacturer Reports Record FY26 Results, Achieves Highest-Ever CV Volumes; Shares Fall 2.5% On Friday

On Friday's morning session, Indian equity benchmarks traded marginally higher, with the Nifty 50 index gaining 0.05 per cent to 23,918. Despite reporting record quarterly and annual financial results, Ashok Leyland share price remained under pressure. The stock was trading at Rs 159.49 on May 29, 2026, down 2.52 per cent from its previous close of Rs 163.62, as investors reacted to the company's Q4 FY26 and FY26 earnings announcement.

Ashok Leyland Reports Record Quarterly Performance

Ashok Leyland reported consolidated revenue from operations of Rs 17,246.44 crore for Q4 FY26, registering a growth of 17.4 per cent from Rs 14,695.55 crore reported in the corresponding quarter of the previous year. Total income increased to Rs 17,417.30 crore from Rs 14,817.18 crore. Profit before tax stood at Rs 1,939.78 crore compared to Rs 1,620.58 crore in Q4 FY25, while profit after tax rose 10.9 per cent to Rs 1,381.32 crore from Rs 1,245.92 crore.

Quarterly EBITDA increased 15 per cent to Rs 2,066 crore from Rs 1,791 crore, while operating profit before tax rose 14 per cent to Rs 1,909 crore from Rs 1,671 crore in the year-ago period. The quarter included an exceptional loss of Rs 19.28 crore, lower than the Rs 110.89 crore exceptional loss reported in Q4 FY25.

Ashok Leyland FY26 Revenue Crosses Rs 56,000 Crore

For the full financial year FY26, consolidated revenue from operations rose 16.1 per cent to Rs 56,362.08 crore from Rs 48,535.14 crore in FY25. Total income stood at Rs 56,946.90 crore compared with Rs 48,893.60 crore in the previous year. Profit after tax increased to Rs 3,720.98 crore from Rs 3,382.79 crore, while EBITDA reached Rs 5,732 crore with a margin of 13.0 per cent.

The company stated that operating profit before tax increased 22 per cent to Rs 5,163 crore during FY26. The year included a one-time charge related to the implementation of new Labour Codes.

Commercial Vehicle Volumes Reach New High

Ashok Leyland recorded its highest-ever commercial vehicle volumes of 220,437 units during FY26, surpassing the previous peak achieved in FY19. Light commercial vehicle volumes reached a record 74,322 units, while exports rose 18.5 per cent to 18,082 units.

Switch Mobility more than doubled its revenue to Rs 1,807 crore during FY26 and reported a profit after tax of Rs 104 crore compared with a loss of Rs 62 crore in the previous year. Hinduja Leyland Finance reported assets under management of Rs 59,531 crore, up 24 per cent year-on-year, while profit after tax increased 20 per cent to Rs 491 crore.

Dividend Announcement

The Board of Directors declared a second interim dividend of Rs 2.50 per equity share for FY26. The dividend will be paid on or before June 26, 2026, with June 3, 2026 fixed as the record date for determining eligible shareholders.

Management Commentary

Commenting on the performance, Dheeraj Hinduja, Chairman of Ashok Leyland, said, “Achieving these record-breaking milestones and delivering a strong financial performance across our businesses is a matter of immense pride for us. Our CV and export volumes were at an all-time high, reflecting the deep trust our customers place in us.”

Shenu Agarwal, Managing Director & CEO, said, “FY26 has been a defining year for us, marked by record-breaking achievements across revenue, EBITDA, profitability and cash generation. Our strong margin expansion reflects the success of our premiumization strategy, the resilience of our operations, and the growing strength of our diversified business portfolio.”

About Ashok Leyland

Ashok Leyland Ltd is the flagship company of the Hinduja Group and one of India's leading commercial vehicle manufacturers. The company manufactures medium and heavy commercial vehicles, light commercial vehicles, buses, defence mobility solutions, engines and power solutions, serving customers across domestic and international markets.

Headquartered in Chennai, Ashok Leyland operates multiple manufacturing facilities across India and exports its products to more than 40 countries. The company also has a presence in financial services through Hinduja Leyland Finance and electric mobility through Switch Mobility, strengthening its position across the transportation and mobility ecosystem.
Record FY26 revenue, all-time high CV volumes and a Rs 2.50 dividend announcement keep Ashok Leyland in focus despite Friday's decline.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice.