Ashok Leyland Hits Record FY26 Revenue & Profit

Ashok Leyland reported its most successful fourth quarter and full fiscal year in FY26, achieving record revenues, net profits, and EBITDA. The company's commercial vehicle volumes surged by 13% year-over-year, with significant growth in domestic MHCV trucks, buses, and LCV sales. Exports also saw a healthy 19% increase.

Despite a recent ₹7 fuel price hike, domestic demand for commercial vehicles remains robust. Chairman Dheeraj Hinduja noted that previous GST rate reductions have improved operator profitability, enabling them to absorb increased fuel costs. Infrastructure and mining sectors continue to fuel demand.

Operations at their Ras Al Khaimah facility experienced a minor slowdown due to geopolitical tensions but have since recovered. Ashok Leyland remains optimistic about international markets, particularly in the GCC, Africa, and SAARC regions.

Switch Mobility, an Ashok Leyland subsidiary, turned profitable in FY26, leading the e-bus market with significant volume growth and new product development planned for the current fiscal year. International orders from Mauritius, Bhutan, and Seychelles are also expanding.

Ashok Leyland is preparing for future fuel technologies, including hydrogen-powered trucks, though widespread demand is not anticipated for another five to six years. They have also commenced construction of a greenfield battery pack manufacturing facility in Pillaipakkam, Tamil Nadu, to serve both captive needs and potentially external customers, with future consideration for cell manufacturing.