Ashok Leyland Ltd. has reported its highest-ever Q1 FY25 commercial vehicle volume, leading to record revenue, EBITDA margins, and profit before tax.

Q1 industry volumes were at levels comparable to the previous peak of Q1 FY19. ALL’s Q1 performance has exceeded all expectations, delivering excellent results through focused market performance and cost management,” said Executive Chairman Dheeraj Hinduja.

Hinduja expressed confidence in increasing market share in the bus and truck segments. “Our product pipeline is very strong, with a host of new product launches this year. This will help us strengthen our market and price position,” he stated. He also highlighted that the record financial performance in Q1 supports ALL’s mid-term objective of achieving mid-teen EBITDA margins.

Despite these achievements, the commercial vehicle manufacturer reported a standalone net profit for the June quarter that contracted by 9% from the previous year to ₹526 crore. Hinduja explained that this decline was due to a one-time gain of ₹172 crore in deferred tax liability in Q1 FY24. Without this effect, the PAT for Q1 FY25 would have shown a 30% growth.

Revenue from operations increased by 5% to ₹8,561 crore, with contributions from non-commercial vehicle businesses, power solutions, aftermarket, defence, and international operations. ALL’s domestic MHCV volume grew by 8%, with a market share of 30.7%. The bus market share rose significantly to 33.3%. The domestic LCV volume increased by 4% to 15,345 units, while exports grew by 5% to 2,324 units.

Hinduja remains optimistic about the prospects of the CV industry, citing favourable economic factors, a likely good monsoon, and supportive economic measures from the recent budget. He also noted early signs of growth in previously subdued export markets, which should aid in expanding the company’s international market volumes.