Ashok Leyland accelerates! Profit jumps 23% in Q2FY26, dividend announced amid strong demand

EBITDA for the quarter stood at ₹1,162 crore, up from ₹1,017 crore a year earlier, with margins improving to 12.1% from 11.6%.

Both the Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments witnessed positive growth in Q2FY26. The company’s MHCV volumes rose 3% year-on-year to 26,307 units, while LCV volumes increased 6% to 17,697 units.

The bus industry continued its upward trajectory, marking growth for the 18th consecutive quarter. Ashok Leyland maintained a domestic MHCV market share of over 30% and retained its leadership in the bus segment. The LCV domestic market share in addressable segments also improved.

Export volumes grew sharply by 45% year-on-year to 4,784 units during the quarter. The company said its Defence, Power Solutions and Aftermarket businesses continued to perform well and are expected to post steady growth in the current fiscal.

Ashok Leyland expanded its product portfolio in Q2FY26 with new launches across the Tipper, Bus, Haulage and LCV segments. The company also said its distribution network expansion is progressing ahead of schedule.

In view of improved financial performance and a positive outlook, the Board of Directors recommended a 100% interim dividend of ₹1 per share (face value ₹1 each).

Commenting on the results, Dheeraj Hinduja, Chairman, Ashok Leyland, said, "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 the Middle East, Africa and SAARC. Switch Mobility is performing well with an order book of nearly 1,500 vehicles."

Shenu Agarwal, Managing Director and CEO, added, "We continue to see stable demand in all segments of trucks and buses. The industry has posted growth, albeit modest, and we anticipate stronger momentum 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. Margin expansion is being driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement. We believe we are well positioned to achieve our mid-teen EBITDA goal in the medium term. We remain cash positive."