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Earnings Call

Ashok Leyland Earnings Call: Key Takeaways

Ashok Leyland achieved record FY26 performance with all-time high volumes, revenue, and EBITDA. Strategy focuses on premiumization, electric mobility via Switch, and expanding service touchpoints.

Highlights
Revenue growthFY26 revenue up 13.6% YoY; Q4 up 19% YoY.
MarginsFY26 EBITDA margin at 13%; Q4 at 14.6%.
Order bookDefense pipeline strongest ever at over ₹1,500cr; Switch India at 1,600 units.
Demand visibilityStrong, driven by replacement cycles and GST rate rationalization effects.
Management confidenceHigh; citing resilient baseline demand and strong fleet replacement plans.

Growth

FY26 revenue grew 13.6% to ₹44,007cr. Q4 revenue rose 19% YoY to ₹14,161cr; PAT reached ₹1,405cr.

Outlook

FY27 capex planned at ₹750cr-₹1,000cr. Targeting battery production by Q2 FY27; defense order book exceeds ₹1,500cr.

Risks

Commodity cost inflation (steel), fuel price hikes, and global logistics issues impacting export timelines.

Last quarter's promises, checked

Delivered

  • Targeting market share gains → MHCV share rose 60bps to 30.9% (= BEAT)
  • Commitment to record Q3 financials → achieved all-time high revenue/EBITDA/PAT (= BEAT)
  • Expand service reach → added 75 MHCV and 77 LCV touchpoints (= BEAT)

Partly delivered

  • Guided capex for 9-month period → delivered ₹844cr vs ₹750-1000cr FY27 guidance (= PARTIAL)

Missed

  • Targeting free cash flow positive Switch India by FY27 → current status not yet met (= MISS)
Source

Earnings Call filed with BSE, NSE: ASHOKLEY. Summary written with AI assistance from the document.

Read the document ↗

Ashok Leyland Ltd: key numbers

Share price
₹159.08
Market cap
₹93,441 Cr
Revenue (annual)
₹56,362 Cr
Net profit (annual)
₹3,471 Cr
P/E (TTM)
26.9×Sector 33.6×
Promoter holding
51.51%+0.00% QoQ
FII holding
20.67%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Credit Rating

Ashok Leyland Credit Rating

CARE Ratings reaffirmed Ashok Leyland's credit ratings on ₹6,000 Crore of debt facilities. Long-term bank facility and NCD ratings were withdrawn for unavailed or repaid amounts.