Ashok Leyland Overview
Ashok Leyland is India's second-largest maker of medium and heavy commercial vehicles (M&HCV). Globally it is among the largest bus manufacturers (reported as 4th-largest) and is a top-20 truck maker. In FY26 it delivered a record 220,437 vehicles, surpassing its FY19 peak, together with record standalone revenue of ₹44,007 crore, EBITDA of ₹5,732 crore (13.0% margin) and a net cash surplus of ₹5,899 crore.
The company holds roughly 31% of India's domestic M&HCV market and about 34% of buses. It is a long-standing logistics-vehicle supplier to the Indian Army, and it is building growth engines outside the core diesel-truck cycle: LCVs, exports, power solutions, aftermarket, defence and electric mobility through Switch Mobility and OHM. Through Hinduja Leyland Finance it also owns a large vehicle-finance platform, now merging into listed NDL Ventures.
The investment debate centres on three questions:
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whether management can deliver its medium-term goals of a 35% M&HCV share and "mid-teen" EBITDA margins;
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whether it can do so through an Indian CV upcycle while commodity costs rise;
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how it allocates capital to electrification, batteries and overseas assembly.
Company self-description (paraphrased from AR FY26 and press releases)
Ashok Leyland describes itself as the Indian flagship of the Hinduja Group and a global player in commercial vehicles, electric mobility and defence mobility, with a presence in more than 50 countries.
The FY26 BRSR (Annexure J) lists the following customer groups:
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commercial fleet operators;
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state transport undertakings and private bus operators;
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industrial customers using tippers and haulage;
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defence and armed forces worldwide;
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special-application vehicle users.
Its brand promise is "No Dream Too Far". Its current strategic framework is referred to in FY26 communications as "Sprint to Vision".
Independent characterisation
Ashok Leyland is a vertically integrated, India-centric commercial vehicle original equipment manufacturer (OEM). It designs and manufactures:
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its own engines (A-series and H-series diesel, CNG and LNG);
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cabs, axles and gearboxes (partly in-house);
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castings, historically through the merged Hinduja Foundries operations.
Its business model has four layers:
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Vehicle sales (dominant). M&HCV trucks of 11–55 tonnes GVW on the AVTR modular platform, plus intermediate CVs (ICVs) such as Ecomet, BOSS and Partner. Also buses of all formats and LCVs (Dost, Bada Dost, SAATHI).
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High-margin, less cyclical "non-M&HCV" businesses.
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Aftermarket spare parts: ₹4,450 crore revenue in FY26, up 12% (AR FY26).
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Power Solutions (industrial, genset, agricultural and marine engines): more than ₹1,000 crore revenue for a second straight year, up ~18.8% in FY26.
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Defence: up 20% in FY26.
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Exports and international assembly: 18,082 units in FY26.
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Electric and new-energy mobility.
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Switch Mobility (e-buses and e-LCVs): FY26 revenue ₹1,807 crore; profitable for the first time.
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OHM Global Mobility: e-mobility-as-a-service, operating 1,400+ e-buses on gross-cost contracts.
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A battery-pack venture with China's CALB.
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Financial services. Hinduja Leyland Finance (vehicle finance, AUM ~₹59,531 crore in FY26) and Hinduja Housing Finance (AUM ~₹16,000 crore). In consolidated accounts these turn Ashok Leyland into a hybrid industrial-plus-NBFC group.
Revenue model mix
| Revenue stream | Nature | Approx. scale / indicator | Source / FY |
|---|---|---|---|
| Vehicle sales (M&HCV, LCV, buses, defence, exports) | Product | Majority of standalone revenue of ₹44,007 crore | AR FY26 |
| Spare parts / aftermarket | Product (recurring) | ₹4,450 crore (~10% of standalone revenue) | AR FY26 |
| Power Solutions (engines) | Product | More than ₹1,000 crore | AR FY26 |
| Services: AMC, telematics (iAlert, Uptime Solution Centre), driver training | Service / subscription | — | n.v. |
| E-mobility-as-a-service (OHM) | Service / leasing on gross-cost contracts | 1,400+ e-buses operated | AR FY26 |
| Financial services (HLF, Hinduja Housing Finance) | Interest income | Q4 FY26 segment revenue ₹2,159.31 crore | Q4 FY26 consolidated results |
| Licensing | Not material / not disclosed | n.v. | — |
Value-chain position and end-markets
The company spans the value chain:
Upstream: engines and some components.
Midstream: chassis and bus-body building, at Hosur, Alwar, Vijayawada, Lucknow and Ras Al Khaimah.
Downstream: dealer and service network (company cites ~54,000 touchpoints including retail parts outlets), financing through HLF, telematics and fleet uptime services, and operations through OHM.
Product mix for FY26 per ICICI Direct: LCV goods ~35%, trucks ~50%, buses ~15% (volume basis).
End-markets served:
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road freight (long-haul, regional, last mile);
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construction and mining (tippers);
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cement, steel and ports;
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e-commerce and FMCG distribution (LCVs);
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public transport (state transport undertakings, metro feeders);
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school and staff transport;
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intercity coaches;
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defence (Indian Army, paramilitary and export);
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gensets and industrial power;
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GCC, SAARC and African export markets.
Strategy
Stated strategy
Medium-term goals (investor meet, June 2023, reaffirmed through FY26 calls and broker notes):
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Achieve "mid-teen" EBITDA margins.
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Raise domestic M&HCV market share to 35% (FY26: 30.8%; Q1 FY27 trucks: ~29%).
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Grow non-M&HCV businesses (LCV, exports, defence, power solutions, aftermarket) substantially.
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Lead in alternate-fuel vehicles.
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Unlock value from subsidiaries (HLF, Switch, OHM).
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Reach net zero (target year 2048) while maintaining strong governance.
LCV targets. A 20% share of the addressable market in the short term and 25% in the medium term. The SAATHI launch extended addressable coverage below 2 tonnes. Management also plans to cover the full LCV range beyond its historical 2–4 t positioning (Arihant, Q1 FY27).
"Sprint to Vision" (AR FY26 theme).
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R&D was restructured into three EV centres of excellence: electric propulsion and motors, batteries, and software for electric and autonomous vehicles.
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AI is embedded as an operating tool.
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A diversified powertrain roadmap: battery-electric for urban logistics and buses; hydrogen (fuel-cell and H2-ICE) and LNG/CNG for long-haul.
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25% of R&D and 10% of capex are earmarked for technologies with environmental and social benefits.
Premiumisation. HIPPO and TAURUS high-horsepower ranges, air-suspension multi-axles and the Garud 15M coach.
Strategic initiatives in the last 24 months
| Date | Initiative | Detail | Target / metric |
|---|---|---|---|
| Sep 2025 | Battery localisation with CALB | Long-term exclusive partnership; LFP packs first, then cells; a Global Centre of Excellence covering materials, recycling and battery management systems; serves AL, Switch, other OEMs and energy storage | More than ₹5,000 crore over 7–10 years |
| Q4 FY26 | Pillaipakkam battery-pack plant | Groundbreaking | Part of FY27 capex of ~₹1,000 crore |
| Nov 2025 | Saudi Arabia assembly | Subsidiary via AL UAE | Production 18–24 months after approvals |
| Feb–May 2026 | Indonesia entry | Pindad MoU for e-buses and defence vehicles; wholly owned subsidiary | — |
| FY26 | OHM e-mobility-as-a-service | ₹600 crore committed. Press (ET, Feb 2026) reported Hinduja seeking ~$200 million of external capital for OHM; the company responded to the exchange query (unconfirmed) | 1,400+ e-buses in fleet |
| Nov 2025 → | HLF–NDL Ventures merger | Effectively a reverse merger to list HLF. CCI approval February 2026; BSE no-objection; NCLT-convened meetings approved it 30 July 2026 | Final NCLT sanction pending |
| FY26 → | Cost programme "Achieve 2K" | Cost-savings programme cited by ICICI Direct (Q1 FY27); the name suggests a ₹2,000 crore target, but scope and target are n.v. | n.v. |
| Jul 2026 | Vehicle scrappage | Partnership with Rosmerta Recycling | Supports replacement demand |
| 2,026 | Delhi-NCR vehicle replacement scheme | AL and Switch participating (Tata Motors subsequently joined) | — |
| FY26 | Renewable energy / RE100 | 77% RE utilisation in FY26 (69% in FY25); operational emissions down more than 61% since FY19 | RE100; net zero by 2048 |
Management guidance (FY27)
| Item | Guidance |
|---|---|
| Domestic M&HCV industry growth | 5–7% (single digit). LCV growth expected to be marginally higher |
| Capex | ~₹800–1,000 crore |
| Pricing | ~1–1.5% increase from April 2026, plus further pass-through of commodity costs |
| Margins | Long-term mid-teen ambition; no explicit FY27 margin guidance verified |
| Defence | Pipeline at an all-time high (chairman, May 2026) |
Products & Services
The company does not publicly disclose pricing. Ex-showroom prices vary by configuration, state and body type, and should be treated as "not publicly disclosed". Launch years are given where verified; otherwise they are marked n.v.
Commercial Vehicle segment — M&HCV trucks
| Product / brand | Description & key specs | Target customer | Launch / latest | Flagship variants |
|---|---|---|---|---|
| AVTR modular platform | Modular haulage, tipper and tractor-trailer platform covering ~19–55 t GVW. Uses the H-series (6-cylinder) and A-series (4-cylinder) engines with i-Gen6 BS-VI technology; multiple axle, cab and wheelbase permutations | Long-haul fleets, construction and mining, cement, steel, containers | 2020; continuous updates | Rigids such as AVTR 2820/3120/3520/4220/4825; tippers; tractors 4420/5525 |
| HIPPO (tractor-trailer) | Revived heritage brand; high-horsepower tractor with 320 and 360 HP engines | Heavy-haul, container and port logistics | FY26 (Q3) | HIPPO 320/360 HP |
| TAURUS (tipper) | Revived heritage brand; heavy tipper with 320 and 360 HP | Mining, quarrying, infrastructure | FY26 (Q3) | TAURUS 320/360 HP |
| Multi-axle trucks with air suspension | Air-suspension technology on multi-axle trucks, described by the company as an industry first in India, to improve payload and total cost of operation | Long-haul fleets | Q1 FY27 | Multi-axle haulage |
| ECOMET (ICV) | Intermediate CV trucks of ~10–16 t | Regional distribution, FMCG, e-commerce | n.v. (ongoing refresh) | Ecomet 1015/1215/1415/1615 |
| BOSS (ICV) | ICV range with LE and LX trims | Regional haulage, market load | LE/LX refresh n.v. | BOSS 1115/1215/1415/1916 |
| PARTNER | Light-to-intermediate trucks (4-tyre/6-tyre), ~6–7.5 t class | Urban and semi-urban distribution | n.v. | Partner 4-tyre, 6-tyre |
| Alternate-fuel trucks | CNG and LNG trucks; hydrogen-ICE and fuel-cell programmes; e-trucks (BOSS EV, AVTR electric tractor demonstrators). E-trucks deployed in mining, ports and cement | Green-logistics fleets, ports, mines | Various; company targeted launches in all alternate fuels within 18–24 months (statement, May 2025) | e-tippers and e-tractors for ports and mines (n.v. model names) |
Commercial Vehicle segment — Buses
| Product | Description | Customer | Launch / latest | Notes |
|---|---|---|---|---|
| Viking | Rugged front-engine city and mofussil bus | State transport undertakings | Legacy, updated | Diesel/CNG |
| Cheetah | Front-engine intercity / mofussil bus | State transport undertakings, private operators | Legacy, updated | — |
| Lynx / Lynx Smart | Low-entry and city formats | Urban transport | n.v. | — |
| Sunshine | School and staff bus (safety-focused) | Schools, corporates | ~2016, updated | — |
| Falcon / Stag / Janbus | City and staff bus variants | City operators, corporates | n.v. | Janbus is a front-engine low-floor design |
| Oyster | Airport apron bus | Airports | n.v. | — |
| MiTR | Light bus based on the LCV architecture | Staff and school, last mile | n.v. | — |
| Garud (12M) | Intercity coach | Private coach operators | n.v. | — |
| Garud 15M | India's first front-engine multi-axle intercity coach (company claim) | Premium intercity operators | FY26 | Flagship |
| Fuel-cell city bus | Company describes it as India's first fuel-cell city bus placed into commercial operation, in Leh | Public transport / government | FY26 | Hydrogen |
| Defence short-chassis buses | Troop transport | Armed forces | Ongoing | — |
Commercial Vehicle segment — LCVs (goods and passenger)
| Product | Description | Customer | Launch / latest |
|---|---|---|---|
| DOST range | 2–3.5 t small CV pickup family (Dost+, Dost Strong, Dost CNG, Dost XL variants) | Small fleet owners, owner-drivers, agriculture | 2011; refreshed |
| BADA DOST | Larger LCV pickup (i2–i5 variants) with higher payload | Intra-city and inter-city distribution | 2021; i5 variant later |
| SAATHI | Sub-2-tonne small commercial vehicle, AL's entry into the sub-2 t segment | First-time buyers, last-mile delivery | FY25 |
| Switch IeV series (e-LCV) | Electric LCVs (IeV3/IeV4 class, n.v. exact naming) | E-commerce, FMCG fleets | 2023 onwards; 1,606 units in FY26 |
The company's LCV share of the addressable 2–4 t market was 18.5–18.6% in FY25. Its VAHAN share across the 0–7.5 t cargo market reached a record 12.7% in FY26 and 13.2% in Q1 FY27.
Electric mobility (Switch Mobility, OHM)
| Product / service | Description | Customer | Status |
|---|---|---|---|
| Switch EiV 12 (standard / low-floor) | 12 m electric city bus | Government transport undertakings via gross-cost contracts (e.g., MTC Chennai) | Ongoing; 1,530 e-buses delivered in FY26 (+238%) |
| Switch EiV 22 | Electric double-decker bus | Mumbai (BEST) and other cities | Ongoing |
| Switch e-LCVs | See 5.3 | — | 1,606 units in FY26 |
| OHM Global Mobility | E-mobility-as-a-service: owns and operates e-buses under gross-cost contracts | City transport authorities | 1,400+ e-buses in fleet (AR FY26); ₹600 crore commitment from AL (Feb 2026) |
| Switch UK / Europe | Historical European e-bus operations (Switch e1/Metrocity) | European operators | — |
Switch Mobility India achieved its first net profit in FY26 (consolidated Switch PAT ₹104 crore vs a loss of ₹62 crore in FY25).
Defence
| Platform | Description | Customer | Status |
|---|---|---|---|
| Stallion 4x4 / 6x6 | Logistics workhorse trucks of the Indian Army | Indian Army, paramilitary | Ongoing; CIWS-related orders worth more than ₹700 crore (Mar 2025) |
| FAT 4x4 (Field Artillery Tractor) | Tows light guns; on the government's positive indigenisation list | Indian Army artillery | ₹800 crore order (with GTV) delivered over 12 months |
| GTV 6x6 (Gun Towing Vehicle) | Tows medium guns | Indian Army | As above |
| High-mobility 8x8 / 10x10 / 12x12 | Heavy-mobility platforms for missile and radar systems | Defence PSUs, Army | Ongoing |
| Armoured / protected vehicles, LSVs | Light specialist and armoured variants | Armed forces, police | Ongoing |
| Indonesia defence vehicles | Joint development with PT Pindad | Indonesian armed forces | MoU Feb 2026; subsidiary approved May 2026 |
The chairman stated in May 2026 that the defence order pipeline is at an all-time high. The order-book value was not disclosed.
Power Solutions Business (PSB)
| Offering | Description | Customer | FY26 |
|---|---|---|---|
| Genset engines | Diesel and gas engines for power generation | Genset OEMs | Revenue more than ₹1,000 crore, ~+18.8% |
| Industrial / construction equipment engines | Engines for construction machinery and compressors | Industrial OEMs | — |
| Agricultural / marine engines | Engines for farm equipment and marine propulsion | OEMs, marine | — |
Aftermarket & services
| Offering | Description | FY26 indicator |
|---|---|---|
| Genuine spare parts | Parts sold through dealers and retail | ₹4,450 crore, +12% |
| Connected-vehicle services (iAlert / Uptime Solution Centre) | Telematics and uptime monitoring | More than 1,70,000 connected vehicles monitored; ~1 TB of data a day; more than 2.5 crore km tracked |
| Annual maintenance contracts and service | Contracts for fleets and state transport undertakings | n.v. |
| Driver training institutes | Driver training network | More than 8 lakh drivers trained since inception (company) |
| Vehicle scrapping partnership | With Rosmerta Recycling (Jul 2026), supporting fleet replacement | New |
Financial services and other
| Entity | Offering | FY26 indicators |
|---|---|---|
| Hinduja Leyland Finance | Vehicle, construction-equipment and tractor loans; LAP; SME loans | AUM ₹59,531 crore (+24%); PAT ₹491 crore (+20%). Q1 FY27 AUM ~₹60,310 crore (+20% YoY) |
| Hinduja Housing Finance | Affordable housing loans | AUM ~₹16,000 crore (+15%); PAT ₹387 crore. PAT growth for this entity was reported at +4%; figures differ across press reports |
| Gro Digital Platforms | B2B digital commerce / financing platform for the CV ecosystem | — |
| Hinduja Tech | Engineering and digital services | — |
| Albonair | Emissions after-treatment technology (Germany/India) | — |
Financial Narrative
Basis. Standalone figures from annual reports as compiled by Screener/C-MOTS, cross-checked with AR FY26 and press releases for FY25–FY26. INR crore unless stated.
EBITDA: reported operating profit before other income.
PAT: after exceptional items.
EPS and DPS: adjusted for the July 2025 1:1 bonus.
Income statement — standalone
Notes:
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FY26 profit before exceptional items and tax was ₹5,162.50 crore (+21.6%). The exceptional labour-code charge was ₹308.48 crore standalone (AR FY26).
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Diluted EPS is not materially different from basic (ESOP dilution is small: 8 lakh shares allotted in FY26).
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Pre-bonus DPS: FY22 ₹1.00; FY23 ₹2.60; FY24 ₹4.95; FY25 ₹6.25 (interim ₹2.00 plus second interim ₹4.25). FY26: ₹3.50 post-bonus (₹1.00 plus ₹2.50).
Margins & growth — standalone
Revenue CAGR (standalone):
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FY22→FY26 (4 years): 19.4%.
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FY21→FY26 (5 years, from ₹15,301 crore): 23.5%. Screener shows 24%.
Income statement — consolidated (summary)
Notes:
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Consolidated "OPM" of ~19% is not comparable with the standalone figure because HLF's interest income sits in revenue and its interest cost sits below EBITDA.
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Press releases presented FY26 EBITDA of ₹5,732 crore alongside consolidated revenue of ₹56,362 crore. The ₹5,732 crore EBITDA is the standalone figure; the consolidated equivalent is ₹10,745 crore. Readers should not mix the two.
Quarterly trajectory — standalone
Sources: Screener quarterly compilation; Q1 FY27 press release.
Source conflicts:
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One outlet (Kotak Neo) reported Q4 FY26 revenue as ₹13,096 crore with a 15.8% margin.
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The exchange-filed figure is ₹14,160.49 crore, which reconciles to full-year ₹44,007 crore. JM Financial also cites 14.6%. The filed figure is used here.
Balance sheet — standalone
Further notes:
Short- and long-term debt split: In FY26, total borrowings of ₹1,195 crore included long-term borrowings of ₹1,002.04 crore. The remainder is short-term or current maturities.
Cash and equivalents: The standalone gross cash figure was not separately extracted.
Goodwill and intangibles: Standalone intangibles (product development and software) are included within fixed assets.
Working capital: Structurally negative because payables exceed receivables plus inventory (see the cash conversion cycle below).
Balance sheet — consolidated (summary)
Notes:
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The consolidated debt-to-equity of 0.61 shown in one results summary for FY26 (0.57 for FY25) is not reconcilable with the table above, which implies more than 4x. It is likely an ex-financial-services metric.
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The large consolidated debt reflects HLF's lending book (AUM ₹59,531 crore), not industrial leverage.
Cash flow — standalone
Notes:
Dividends: The "declared for the year" row is computed as DPS times shares outstanding. Cash dividends paid in a given fiscal year differ because of payment timing. The FY26 declarations were ₹587.38 crore (November 2025) and ₹1,468.46 crore (May 2026).
Buybacks: None in FY22–FY26.
Capex: Management guided FY27 capex at ~₹1,000 crore (₹800–1,000 crore in some reports), similar to FY26, focused on products, technology, EVs and the battery plant rather than capacity.
Group investments: Investing outflows include investments in subsidiaries. For example, the board approved ₹200 crore for HLF and ₹500 crore for Optare (the Switch holding company) around Q3 FY25, and a ₹600 crore commitment to OHM in FY26.
Ratios — standalone
Further ratio notes:
Net debt to EBITDA: FY25 −0.86x (net cash ₹4,242 crore / ₹4,931 crore); FY26 −1.03x (₹5,899 crore / ₹5,732 crore). Negative values mean net cash.
ROIC: Not separately computed. ROCE is used as the closest available proxy.
Computation: ROE, ROA, interest coverage and asset turnover were computed from the tables above. Debtor, inventory and payable days and the cash conversion cycle are from Screener.
Commentary — trends, inflections and drivers
FY22–FY23: cyclical recovery and operating leverage.
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Revenue rebounded 42% in FY22 and 67% in FY23 as India's M&HCV cycle recovered from the 2020–21 trough, which combined the BS-VI transition and COVID.
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EBITDA margin moved from 4.6% to 8.1%, but finance costs (
₹300 crore) and depreciation (₹750 crore) absorbed most of the gain. -
FY22 standalone PAT (₹542 crore) was flattered by ₹587 crore of other income; consolidated FY22 was a ₹285 crore loss.
FY24: the margin inflection.
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With revenue up only 6%, EBITDA jumped 57% to ₹4,607 crore (12.0% margin).
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Drivers were pricing discipline ("low discounting", per ICICI Direct), a richer mix, commodity tailwinds and cost programmes.
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This marked the beginning of a run of double-digit EBITDA margins that, by Q1 FY27, had reached 14 consecutive quarters (company).
FY25: profit growth without volume growth.
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Revenue grew only 1% and volumes were flat.
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EBITDA nonetheless rose 7%, PAT rose 26% and cash from operations nearly tripled to ₹7,819 crore through working-capital release.
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The balance sheet moved to a net cash surplus of ₹4,242 crore.
FY26: volume-led growth.
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Record volumes of 220,437 (+13%) drove revenue up 13.6% and pre-exceptional PBT up 21.6%.
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Reported PAT grew only 7.9% because of the ₹308 crore labour-code exceptional charge and a normalised tax rate.
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Margin expanded only 30 bps. Price increases (~1% from January 2026) and cost-saving offset commodity inflation and new regulatory costs (AC cabins, which Morgan Stanley flagged).
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The second-half surge (Q4 margin of 14.6%) reflects a demand acceleration after GST rationalisation on commercial vehicles in late September 2025, which the press widely reported as a cut in the CV GST rate from 28% to 18%.
Q1 FY27: a cost-driven dip.
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EBITDA margin fell 100 bps YoY to 10.1% on material-cost inflation.
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Management took price hikes of ~1–1.5% effective April 2026; Arihant also cites ~2.25% for medium and heavy CVs and ~3.5% for LCVs across FY27.
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July–September 2026 volumes (64,677 units, computed from monthly filings) were ~32% above the prior-year quarter (49,116), setting up strong operating leverage in Q2 FY27. Results are due in November 2026; the date was not announced as of 20 October.
Capital efficiency.
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ROE has been around 29–33% for three years.
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This rests on a negative cash conversion cycle (−30 days or better), a low capital-intensity footprint (capex ~2% of revenue) and a high payout policy (~55–58%).
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Segment Overview
| Segment | What it contains | Key entities |
|---|---|---|
Commercial Vehicles | Manufacture and sale of M&HCV trucks, buses, LCVs, defence vehicles, engines (Power Solutions), spare parts, EVs and related services | Ashok Leyland Ltd (standalone); Switch Mobility (Optare plc, UK and Switch Mobility Automotive Ltd, India); Ashok Leyland (UAE) LLC; Ashok Leyland Saudi Company; Ashok Leyland (Nigeria); Ashok Leyland (Chile); OHM Global Mobility; Albonair; Gro Digital; Hinduja Tech; others |
Financial Services | Vehicle finance, loans and leasing; housing finance | Hinduja Leyland Finance Ltd (material subsidiary) and its subsidiary Hinduja Housing Finance |
Segment revenue (INR Cr)
| Segment revenue (INR Cr) | Q4FY2025 | Q4FY2026 |
|---|---|---|
Commercial Vehicle segment revenue | 12,926.68 | 15,087.23 |
Financial Services segment revenue | 1,769.34 | 2,159.31 |
Total consolidated revenue from operations | 14,695.55 | 17,246.44 |
Segment contribution and growth
| Segment contribution and growth | Value | Basis |
|---|---|---|
CV segment share of Q4 FY26 consolidated revenue | 87.5% | Computed from the table above |
Financial Services share of Q4 FY26 consolidated revenue | 12.5% | Computed |
CV segment YoY growth, Q4 FY26 | +16.7% | Filing |
Financial Services YoY growth, Q4 FY26 | +22.0% | Filing |
Revenue by Segment
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Consolidated revenue from operations | 26,237 | 41,673 | 45,703 | 48,535 | 56,362 |
Standalone revenue from operations | 21,688 | 36,144 | 38,367 | 38,753 | 44,007 |
Subsidiaries and eliminations, net (consolidated minus standalone) | 4,549 | 5,529 | 7,336 | 9,782 | 12,355 |
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View Subscription PlansBusiness Verticals
| Vertical (units) | FY2025 | FY2026 |
|---|---|---|
Total CV volumes (domestic plus exports) | 195,097 | 220,437 |
M&HCV trucks excluding defence | 91,960 | 105,905 |
M&HCV buses excluding defence | 21,249 | 20,840 |
Domestic LCV | 65,049 | 74,322 |
International operations (exports) | 15,255 | 18,082 |
Switch e-buses delivered | 453 | 1,530 |
Switch e-LCVs delivered | 1,029 | 1,606 |
Vertical revenue (INR Cr)
| Vertical revenue (INR Cr) | FY2026 | YoY growth |
|---|---|---|
Spare parts / aftermarket | 4,450 | +12% |
Power Solutions | More than 1,000 | ~+18.8% |
Defence | Not disclosed (absolute) | +20% |
Switch Mobility (consolidated subsidiary) | 1,807 | More than 2x (FY25 ~n.v.) |
Income Statement and Per-Share Data
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations | 21,688 | 36,144 | 38,367 | 38,753 | 44,007 |
EBITDA | 995 | 2,931 | 4,607 | 4,931 | 5,732 |
Other income, net (FY26 includes the labour-code exceptional item) | 587 | 201 | 153 | 354 | -33 |
Depreciation and amortisation | 753 | 732 | 718 | 719 | 715 |
Operating income (EBIT = EBITDA minus D&A) | 242 | 2,199 | 3,889 | 4,212 | 5,017 |
Finance costs | 301 | 289 | 249 | 217 | 170 |
Profit before tax | 528 | 2,110 | 3,792 | 4,348 | 4,814 |
Profit after tax | 542 | 1,380 | 2,618 | 3,303 | 3,566 |
Basic EPS, bonus-adjusted (INR) | 0.92 | 2.35 | 4.46 | 5.62 | 6.07 |
Dividend per share, bonus-adjusted (INR) | 0.50 | 1.30 | 2.475 | 3.125 | 3.50 |
Dividend payout (%) | 54 | 55 | 56 | 56 | 58 |
Margin Analysis (%)
| Metric (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue growth YoY | 41.7 | 66.7 | 6.2 | 1.0 | 13.6 |
EBITDA margin | 4.6 | 8.1 | 12.0 | 12.7 | 13.0 |
Operating (EBIT) margin | 1.1 | 6.1 | 10.1 | 10.9 | 11.4 |
PBT margin | 2.4 | 5.8 | 9.9 | 11.2 | 10.9 |
Net margin | 2.5 | 3.8 | 6.8 | 8.5 | 8.1 |
Effective tax rate | -3 | 35 | 31 | 24 | 26 |
Income Statement and Per-Share Data — Revenue from operations
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations | 26,237 | 41,673 | 45,703 | 48,535 | 56,362 |
Operating profit before other income (includes NBFC interest income) | 2,765 | 5,093 | 7,856 | 9,208 | 10,745 |
Finance costs (mainly HLF) | 1,869 | 2,094 | 2,982 | 3,930 | 4,705 |
Profit before tax | -200 | 2,269 | 4,106 | 4,596 | 5,155 |
Net profit (total) | -285 | 1,362 | 2,696 | 3,383 | 3,721 |
EPS attributable to owners (INR, bonus-adjusted) | -0.61 | 2.11 | 4.23 | 5.29 | 5.91 |
Income Statement and Margin Analysis (%)
| Metric (INR Cr) | Q1FY2026 | Q2FY2026 | Q3FY2026 | Q4FY2026 | Q1FY2027 |
|---|---|---|---|---|---|
Revenue from operations | 8,725 | 9,588 | 11,534 | 14,160 | 9,634 |
EBITDA | 970 | 1,162 | 1,535 | 2,066 | 970 |
EBITDA margin (%) | 11.1 | 12.1 | 13.3 | 14.6 | 10.1 |
PAT | 594 | 771 | 796 | 1,405 | 609 |
EPS (INR) | 1.01 | 1.31 | 1.36 | 2.39 | 1.04 |
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View Subscription PlansBalance Sheet
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets | 20,334 | 22,592 | 23,612 | 25,526 | 28,594 |
Net fixed assets | 6,601 | 6,304 | 5,952 | 5,845 | 6,389 |
Capital work in progress | 194 | 133 | 202 | 425 | 479 |
Investments (includes subsidiaries and treasury) | 4,820 | 6,664 | 5,560 | 8,673 | 10,679 |
Total borrowings | 3,554 | 3,225 | 2,299 | 1,482 | 1,195 |
Shareholders' equity | 7,337 | 8,426 | 8,811 | 11,519 | 13,113 |
Other liabilities (payables, provisions) | 9,443 | 10,941 | 12,502 | 12,525 | 14,285 |
Metric | Value | — | — | — | — |
Net cash surplus, FY2026 (company-reported) | ₹5,899 crore | — | — | — | — |
Net cash surplus, FY2025 (company-reported) | ₹4,242 crore | — | — | — | — |
Net cash, 30 Jun 2026 | ₹2,252 crore (down sequentially on the dividend and working-capital build; +₹1,432 crore YoY) | — | — | — | — |
Long-term borrowings, 31 Mar 2025 | ₹1,286.11 crore | — | — | — | — |
Long-term borrowings, 31 Mar 2026 | ₹1,002.04 crore | — | — | — | — |
Balance Sheet — Total assets
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets | 43,574 | 54,679 | 67,595 | 81,546 | 100,704 |
Total borrowings (mainly HLF) | 24,145 | 31,161 | 40,802 | 49,962 | 63,936 |
Equity attributable to owners (capital plus reserves) | 7,304 | 8,554 | 9,005 | 12,232 | 14,241 |
Cash Flow and Per-Share Data
| Metric (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Cash from operations | 2,647 | 2,136 | 2,503 | 7,819 | 4,792 |
Capex (implied: CFO minus FCF) | 296 | 426 | 481 | 924 | 978 |
Free cash flow | 2,351 | 1,710 | 2,022 | 6,895 | 3,814 |
Cash from investing | -1,459 | -1,736 | 902 | -4,078 | -3,204 |
Cash from financing | -724 | -940 | -1,917 | -3,024 | -2,217 |
Dividends declared for the year (DPS × shares) | 294 | 763 | 1,453 | 1,835 | 2056 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE on average equity (%) | 7.6 | 17.5 | 30.4 | 32.5 | 29.0 |
ROA on average assets (%) | 2.8 | 6.4 | 11.3 | 13.4 | 13.2 |
ROCE (%, Screener) | 3 | 20 | 36 | 36 | 38 |
Debt to equity (x) | 0.48 | 0.38 | 0.26 | 0.13 | 0.09 |
Interest coverage, EBIT / interest (x) | 0.8 | 7.6 | 15.6 | 19.4 | 29.5 |
Asset turnover, revenue / average assets (x) | 1.12 | 1.68 | 1.66 | 1.58 | 1.63 |
Debtor days | 52 | 41 | 34 | 27 | 24 |
Inventory days | 45 | 36 | 42 | 39 | 40 |
Payable days | 150 | 94 | 82 | 97 | 97 |
Cash conversion cycle (days) | -52 | -17 | -7 | -30 | -32 |
Operating Metrics (units) and Revenue by Region (%)
| Indicator | FY2025 | FY2026 |
|---|---|---|
Export / international CV volumes (units) | 15,255 | 18,082 |
Export share of total CV volumes (%) | 7.8 | 8.2 |
Foreign exchange earnings, standalone (INR Cr) | — | 2,709.57 |
Foreign exchange outgo, standalone (INR Cr) | — | 656.50 |
Quarterly Export Indicator Details
| Quarterly export indicator | Value |
|---|---|
Q3 FY26 export volumes | 4,965 units (+20% YoY) |
Q1 FY27 export volumes | 2,461 units |
September 2026 exports | +51% YoY (CMV360). Total including exports was 24,049 units vs domestic 22,157, implying exports of ~1,892 |
Region Overview
| Region | Markets | Footprint | Trend |
|---|---|---|---|
GCC / Middle East | UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kuwait | Ras Al Khaimah (UAE) assembly plant, ~6,000 vehicles a year and at or near full utilisation. Saudi assembly subsidiary incorporated November 2025; production expected 18–24 months after final approvals (comment of August 2026) | Fastest-growing. The Gulf is reported at ~40% of exports, with ~30% sales growth in the latest reported year. CFO K M Balaji said demand exceeds capacity by 30–40% and that a 7.5% customs duty on UAE-to-Saudi shipments motivates local Saudi assembly |
SAARC | Bangladesh, Sri Lanka, Nepal, Bhutan | Long-standing bus and truck exports. Sri Lanka has a legacy associate (Lanka Ashok Leyland, n.v. current stake) | Recovering after the 2022–23 macro crises in Sri Lanka and Bangladesh (n.v. FY26 detail) |
Africa | Nigeria, Kenya, Tanzania, others | Ashok Leyland (Nigeria) Ltd, a wholly owned subsidiary | Growth market; no figures disclosed |
ASEAN | Indonesia (new "fourth home market" per broker commentary) | PT Pindad MoU (February 2026); wholly owned Indonesian subsidiary approved 28 May 2026 | New-entry stage |
Latin America | Chile and others | Ashok Leyland (Chile) S.A., a subsidiary | Small |
UK / Europe | Switch Mobility / Optare legacy | UK e-bus operations | — |
Valuation Snapshot
| Metric | Value | Source |
|---|---|---|
Last price (19 Oct 2026) | ~₹148–149 | Screener |
Market capitalisation | ~₹87,080–87,400 crore (~US$10 billion at the prevailing rate, n.v.) | Screener |
52-week high / low | ₹215.42 (early CY2026) / ~₹136 | Screener / IIFL |
1-year price change | ~+10.7% (Screener meta, 19 Oct 2026) | Screener |
3-year price CAGR | ~20% | Screener |
5-year price CAGR | ~17% | Screener |
10-year price CAGR | ~13% | Screener |
Drawdown from 52-week high | ~−31% at ₹148 | Computed |
Per-Share Data
| Price / valuation path | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Standalone EPS, bonus-adjusted (INR) | 4.46 | 5.62 | 6.07 |
Book value per share, bonus-adjusted (INR) | 15.00 | 19.61 | 22.32 |
Valuation Multiples
| Multiple | Ashok Leyland | Basis |
|---|---|---|
P/E, trailing (standalone) | 22.8x | Screener |
P/E, trailing (consolidated) | 23.4x | Screener |
EV/EBITDA, trailing (standalone) | ~14.2x | Computed: (₹87,403 crore market cap − ₹5,899 crore net cash) / ₹5,732 crore |
EV/Sales, trailing (standalone) | ~1.8x | Computed: ₹81,504 crore / ₹44,917 crore TTM |
P/B (standalone) | ~6.7x | ₹149 / ₹22.3 book |
P/B (consolidated) | 6.14x | Screener |
Dividend yield | ~2.35% | Screener |
Analyst Ratings & Targets
| Broker / source | Date | Rating | Target price (INR) |
|---|---|---|---|
JM Financial | 28 May 2026 | BUY | 191 (cut from 204) |
ICICI Direct | 17 Aug 2026 | n.v. (HOLD-type framing) | 185 |
Arihant Capital | Aug 2026 (Q1 FY27 update) | HOLD | 196–198 |
Citi | Aug 2026 | Positive (per media) | n.v. |
Nomura | Aug 2026 | Neutral (per media) | n.v. |
Trendlyne aggregate | Jul 2026 | — | Average 172.86 (8 brokers) |
Sharpely aggregate | 2026 | — | Mean 176.46; median 180 |
Dividend per share (INR, bonus-adjusted)
| Dividend per share (INR, bonus-adjusted) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total DPS | 0.50 | 1.30 | 2.475 | 3.125 | 3.50 |
Payout ratio (%) | 54 | 55 | 56 | 56 | 58 |
Credit Ratings
| Agency | Instrument | Rating | Date |
|---|---|---|---|
ICRA | Long-term instruments / NCDs (total rated ₹7,379.38 crore) | [ICRA]AA+ (outlook per rationale; n.v.) | Reaffirmed 9 Oct 2026 |
ICRA | Proposed NCD of ₹300 crore | [ICRA]AA+ | 2 Jun 2026 |
CARE | Bank facilities of ₹6,000 crore | Reaffirmed (rating level n.v.; unavailed limits withdrawn) | 22 Sep 2026 |
Moody's / S&P / Fitch | — | Not rated / not publicly disclosed | — |
Debt item (INR Cr)
| Debt item (INR Cr) | FY2025 | FY2026 |
|---|---|---|
Long-term borrowings | 1,286.11 | 1,002.04 |
Total borrowings | 1,482 | 1,195 |
Analyst Conclusions
Management guidance (FY27)
| Item | Guidance |
|---|---|
| Domestic M&HCV industry growth | 5–7% (single digit). LCV growth expected to be marginally higher |
| Capex | ~₹800–1,000 crore |
| Pricing | ~1–1.5% increase from April 2026, plus further pass-through of commodity costs |
| Margins | Long-term mid-teen ambition; no explicit FY27 margin guidance verified |
| Defence | Pipeline at an all-time high (chairman, May 2026) |
-
M&HCV industry growth of 5–7%, with LCVs marginally higher.
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Capex of ~₹800–1,000 crore, focused on new products, EVs and the battery plant.
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Price increases to offset commodity inflation.
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The Saudi plant to begin production 18–24 months after final approvals.
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An all-time-high defence pipeline.
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Continued pursuit of 35% M&HCV share and mid-teen EBITDA margins.
Consensus growth expectations
Arihant expects premiumisation and gradual margin recovery to drive earnings growth over FY27–FY29E. Brokers broadly model single-digit-to-low-double-digit industry growth for FY27. However, actual H1 FY27 volumes are running well ahead of guidance:
-
AL April–September domestic +24%;
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M&HCV trucks +33% cumulatively.
Bull case
-
Operating leverage in a stronger-than-guided upcycle. Q2 FY27 volumes are ~32% above the prior year (64,677 vs 49,116 units, computed). Applying FY26's incremental margin profile, as Q4 FY26's 14.6% margin showed, could take FY27 EBITDA well above FY26's ₹5,732 crore despite the weak Q1.
-
Under-appreciated sum of the parts. The HLF listing via NDL Ventures (AUM ~₹60,310 crore, PAT ₹491 crore in FY26), a profitable Switch (₹104 crore PAT), OHM (1,400+ e-buses) and net cash of ₹5,899 crore together form a large non-core value pool. Brokers already attribute ~₹17 per share to HLF alone (JM Financial).
-
Structural mix improvement. Exports +18.5%, defence +20%, PSB +18.8% and aftermarket +12% are growing faster than the core. Saudi and Indonesian localisation could lift export volumes beyond the RAK capacity constraint.
Bear case
-
Margin ceiling. Despite record volumes, FY26 EBITDA margin rose only 30 bps (to 13.0%), and Q1 FY27 fell to 10.1%. The "mid-teen" goal has not been reached on an annual basis after three years.
-
Share stagnation. M&HCV share of 30.8% (FY26) and ~29% in Q1 FY27 trucks is well short of 35%. Buses excluding defence declined 1.9% in FY26 and domestic bus volumes were down 11% in April–August 2026.
-
Capital allocation and governance risk. Growing commitments to group ventures (OHM ₹600 crore, Switch, the battery programme of more than ₹5,000 crore with a Chinese partner), the 40.1% promoter pledge and a FII stake that fell ~3.9 points in the June 2026 quarter could weigh on the multiple, particularly at the cycle peak.
Key catalysts and monitorables (next 12 months)
| Catalyst / monitorable | Timing | What to watch |
|---|---|---|
| Q2 FY27 results | Mid-November 2026 (expected) | EBITDA margin recovery toward 12–13% on ~32% higher volumes |
| Monthly volumes | Monthly | Durability of the festive and post-GST demand surge; bus volumes |
| HLF–NDL merger completion | Pending NCLT | Listing date; valuation of NDL Ventures |
| OHM fundraise | Unconfirmed | Size, valuation, deconsolidation |
| Saudi plant approvals / construction | 2026–28 | Final approvals; capex size |
| Battery-pack plant commissioning | FY27 | Captive cost savings; third-party orders |
| Defence order announcements | Ongoing | Order-book disclosure |
| Commodity prices (steel) | Ongoing | Q3–Q4 FY27 gross margin |
| M&HCV market share | Quarterly | Progress toward 35% |
| DTC award realisation | FY27 | Challenge or settlement; cash inflow (~₹223 crore plus interest) |
| Promoter pledge | Quarterly | Further reduction from 40.1% |
| Auditor rotation | Post-AGM 2026 | Successor firm (n.v.) |
Analyst verdict
Ashok Leyland enters the second half of FY27 in its strongest structural position in two decades. FY26 delivered:
-
record volumes of 220,437 units;
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record standalone revenue of ₹44,007 crore and EBITDA of ₹5,732 crore;
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a ₹5,899 crore net-cash balance sheet;
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ROCE near 38%.
Its diversified streams (aftermarket, power solutions, defence, exports) now contribute meaningful, faster-growing revenue. Switch's swing to profit removes what was, until recently, the group's most visible cash drain. Monthly data from July to September 2026 indicate an M&HCV upcycle running far ahead of management's cautious 5–7% industry guidance. This sets up material operating leverage after a commodity-hit Q1, whose 10.1% margin was the lowest in more than a year.
The stock, by contrast, trades ~31% below its 52-week high at ~23x trailing earnings and ~14x EV/EBITDA. That rating discounts peak-cycle concerns, margin scepticism and the Hinduja-related governance and pledge overhang. The FII-to-DII rotation in the June quarter suggests foreign investors have been sellers into the cycle.
Our synthesis is that the core franchise is executing well but has not yet proven its medium-term promises:
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M&HCV share has stalled around 29–31% against a 35% target;
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EBITDA margin has plateaued at 13% against a "mid-teen" goal.
The re-rating case therefore rests on three verifiable near-term events:
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Q2–Q3 FY27 margins converting the volume surge into a clear move above 13%;
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completion of the HLF–NDL listing, crystallising financial-services value;
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disciplined deployment of net cash, with transparent returns thresholds for OHM, batteries and overseas assembly rather than open-ended group funding.
If these line up, sell-side targets clustered around ₹180–196 look achievable. If margins stay range-bound while group commitments rise, the stock is likely to keep trading as a cyclical at a discount to its own capital-efficiency metrics.
On balance: a fundamentally strong, cash-rich cyclical with improving mix, whose valuation upside depends more on margin delivery and capital-allocation discipline than on demand, which currently looks robust.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background | Education | Age |
|---|---|---|---|---|---|
Dheeraj G. Hinduja | Executive Chairman | Executive Chairman since ~2021; board member since the 2000s. Reappointed for 26 Nov 2026–25 Nov 2029 (approved at the 2026 AGM per proposal) | Hinduja Group (Hinduja Automotive UK); chairs Switch Mobility and other group entities | n.v. | n.v. |
Shenu Agarwal | Managing Director & CEO | Since December 2022 | Previously a senior executive at Escorts (agri-machinery), with earlier roles at Ingersoll Rand / Cummins (n.v. detail) | n.v. | n.v. |
K M Balaji | Whole-Time Director & CFO (from 28 May 2026; previously President – Finance & CFO) | ~32 years at Ashok Leyland; CFO since ~2023 (n.v. exact date) | Joined in internal audit. Led treasury, costing, investor relations, business finance, pricing, product-cost engineering and indirect taxation. Worked at the UK bus facility. Received CII's "Leading CFO of the Year for Excellence in Turnaround" (2024–25) | Chartered Accountant (Fellow); executive programmes at Harvard, Kellogg, ISB and IIM Ahmedabad | n.v. |
Amandeep Singh | President – International Operations, Defence, LCV & Power Solutions | n.v. | Formerly President – Defence | n.v. | n.v. |
Jasmeet Bhatia | President & Chief Human Resources Officer | From 27 Jan 2026 | Previously CHRO of Thermax (Nov 2020–Jan 2026); earlier at Carrier, Valvoline and Honeywell | MBA (HR), MDI; BSc Computer Science, Delhi University | n.v. |
Raja Radhakrishnan | Special projects (AL and Hinduja Group) | Moved from the CHRO role in January 2026 | Former CHRO | n.v. | n.v. |
N. Ramanathan | Company Secretary | n.v. | — | n.v. | n.v. |
Executive Leadership Team by Executive
| Executive | Component | Amount |
|---|---|---|
Dheeraj G. Hinduja (proposed for the new term) | Fixed compensation | ₹15.50 crore a year |
Dheeraj G. Hinduja (proposed for the new term) | Annual performance pay | ₹17.50 crore a year |
K M Balaji (Whole-Time Director & CFO, 2-year term) | Fixed | ₹3.85 crore a year |
K M Balaji | Annual performance pay | ₹1.65 crore a year |
Shenu Agarwal (MD & CEO) | FY26 actual remuneration | — |
Governance Overview
| Element | Status |
|---|---|
Chair / CEO separation | Yes. Executive Chairman (promoter family) is separate from the MD & CEO (professional) |
Executive directors | Dheeraj G. Hinduja; Shenu Agarwal; K M Balaji (from May 2026) |
Promoter non-executive | Shom Ashok Hinduja (listed in company materials) |
Independent directors | Previously disclosed independent and non-executive directors include international auto executives (e.g., Dr. Andrew C. Palmer and José María Alapont) and Indian business leaders (e.g., Manisha Girotra, Saugata Gupta). |
Independence | Board meets SEBI LODR requirements, with at least half independent where the chair is executive (exact count n.v.) |
Committees | Audit; Nomination & Remuneration; Stakeholders' Relationship; CSR; Risk Management; plus others such as Technology / ESG (n.v.) |
Governance Detail
| Category | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
Promoters | 51.52 | 51.51 | 51.51 | 51.51 | 51.51 |
FIIs | 23.85 | 24.32 | 24.41 | 24.57 | 20.67 |
DIIs | 13.88 | 13.59 | 13.73 | 13.06 | 15.75 |
Government | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
Public | 10.67 | 10.51 | 10.30 | 10.79 | 11.99 |
Major Shareholders
| Holder / item | Stake / value |
|---|---|
Hinduja Automotive Limited (promoter) | 34.99% (2,038,857,356 shares) |
Hinduja Bank (Switzerland), beneficiary Hinduja Automotive Ltd (promoter group) | 4.97% |
Hinduja Foundries Holding Ltd (promoter group) | 0.24% |
Shares underlying depository receipts (promoter group) | 658,400,280 shares, ~11.2% |
Norway's Government Pension Fund Global (largest named public shareholder) | 1.57% |
Mutual funds | ~7.9% across 41 schemes |
FPIs | 816 holders (Mar 2026) |
Shareholder count | 16.45 lakh shareholders (Jun 2026), up from 15.03 lakh (Mar 2026) |
Promoter pledge | 40.10% of promoter shares (Mar 2026), down from 41.15% (Dec 2025) |
Insider ownership (non-promoter) | Negligible; ESOP allotments of 8 lakh shares in FY26 |
Competitive Landscape
Competitors by Segment
| Segment | Competitors | Notes |
|---|---|---|
M&HCV trucks | Tata Motors (CV business, now the listed Tata Motors Ltd after the 2025 PV/CV demerger); VE Commercial Vehicles (Eicher–Volvo JV, consolidated by Eicher Motors); Daimler India Commercial Vehicles (BharatBenz); Mahindra Truck & Bus; Volvo Trucks India; Scania (niche); SML Mahindra (formerly SML Isuzu, in lighter ICVs) | Tata leads; AL is #2 with ~30–31%; VECV is #3 and gaining |
Buses (diesel / CNG) | Tata Motors; VECV (Eicher); BharatBenz; Force Motors (Traveller / Urbania light buses); SML Mahindra; Volvo / Scania (premium coaches) | AL bus share 34.1% (FY26) |
E-buses | Olectra Greentech (BYD tech); Tata Motors (via TML Smart City Mobility); JBM Auto; PMI Electro Mobility; EKA Mobility; Switch (AL) | Gross-cost-contract tenders under PM e-Bus Sewa and PM E-DRIVE |
LCV goods (2–7.5 t) | Tata Motors (Ace/Intra/Yodha); Mahindra (Bolero Pik-Up, Supro, Jeeto); Maruti Suzuki (Super Carry); Isuzu (D-Max pickups); Force Motors | AL VAHAN share 12.7–13.2% |
e-LCV | Tata (Ace EV); Mahindra (Zor, e-pickup); Euler Motors; Switch IeV | Early-stage market |
Defence logistics vehicles | Tata Advanced Systems; BEML; Mahindra Defence; Force Motors (light vehicles) | AL is the largest supplier of logistics vehicles to the Indian Army (company) |
Power solutions / engines | Cummins India; Kirloskar Oil Engines; Mahindra Powerol; Escorts Kubota (engines) | AL PSB more than ₹1,000 crore |
Vehicle finance (HLF) | Shriram Finance; Cholamandalam; Mahindra Finance; Tata Capital; Sundaram Finance; banks | HLF AUM ~₹59.5k crore |
Peer Comparison FY2026
| Metric | Ashok Leyland | Tata Motors (CV) | VECV / Eicher Motors | Daimler India (BharatBenz) |
|---|---|---|---|---|
Domestic M&HCV market share, FY26 | 30.8% | — | — | — |
Latest annual revenue | ₹44,007 crore standalone / ₹56,362 crore consolidated (FY26) | — | — | Not disclosed (unlisted) |
Revenue growth | +13.6% (FY26, standalone) | n.v. | n.v. | — |
EBITDA margin | 13.0% (FY26) | n.v. | n.v. | — |
R&D intensity | 1.44% of turnover (FY26) | n.v. | n.v. | — |
Listed vehicle | ASHOKLEY | TMCV / Tata Motors | EICHERMOT | Parent Daimler Truck AG (Germany) |
Recent Developments
There were no layoffs, guidance withdrawals or adverse regulatory actions identified in this window.
