Ashok Leyland has reported its strongest-ever financial and operational performance for both Q4 and the full financial year FY26, setting new benchmarks across revenues, profitability, commercial vehicle volumes, exports, and electric mobility.
The Chennai-based commercial vehicle manufacturer posted record revenues of Rs. 44,007 crore for FY26, registering a growth of 14 per cent compared to Rs. 38,753 crore in FY25. Operating Profit Before Tax (PBT) rose sharply by 22 per cent to Rs. 5,163 crore, while Profit After Tax (PAT) stood at Rs. 3,566 crore despite a one-time labour code-related charge of Rs. 308 crore.
The company’s EBITDA for FY26 improved to Rs. 5,732 crore with margins expanding to 13 per cent from 12.7 per cent in the previous financial year. Ashok Leyland also strengthened its balance sheet significantly, ending FY26 with a net cash position of Rs. 5,899 crore compared to Rs. 4,242 crore a year earlier.
Record Commercial Vehicle Volumes
Ashok Leyland achieved its highest-ever commercial vehicle sales during FY26, crossing the 220,000-unit milestone for the first time. Total CV volumes reached 220,437 units, surpassing the company’s previous peak of 197,366 units recorded in FY19. Overall CV volumes grew 13 per cent year-on-year.
The company’s Light Commercial Vehicle (LCV) business also continued its upward trajectory, posting record volumes of 74,322 units, exceeding the earlier high of 66,633 units achieved in FY24.
Exports remained another major growth driver for the company. Export volumes rose 18.5 per cent to an all-time high of 18,082 units compared to 15,255 units in the previous year. Ashok Leyland stated that increasing international market penetration and expansion into newer geographies continue to strengthen its global ambitions.
Q4 Performance Remains Strong
For Q4 FY26, Ashok Leyland reported EBITDA of Rs. 2,066 crore, marking a 15 per cent increase over Rs. 1,791 crore in the same quarter last year. Operating PBT for the quarter stood at Rs. 1,909 crore, while PAT grew 13 per cent to Rs. 1,405 crore.
Cash generation during the quarter remained robust at Rs. 3,280 crore, highlighting strong operational efficiency and healthy business momentum.
Electric Mobility Gains Momentum
The company’s electric mobility arm, Switch Mobility, delivered strong growth during FY26. Electric bus volumes surged 238 per cent to 1,530 units, while electric LCV sales increased 56 per cent to 1,606 units.
Switch Mobility more than doubled its revenues to Rs. 1,807 crore and posted a PAT of Rs. 104 crore, compared to a loss of Rs. 62 crore in the previous financial year. The turnaround reflects growing adoption of electric commercial vehicles and improving operational scale.
Growth Across Financial Services Businesses
Ashok Leyland’s financial services businesses also delivered healthy growth during the year.
Hinduja Leyland Finance reported a 24 per cent rise in Assets Under Management (AUM), reaching Rs. 59,531 crore, while PAT increased 20 per cent to Rs. 491 crore.
Similarly, Hinduja Housing Finance expanded its AUM by 15 per cent to Rs. 15,937 crore, with PAT rising 4 per cent to Rs. 387 crore.
Mr. Dheeraj Hinduja, Chairman, Ashok Leyland Limitedsaid, “Achieving these record-breaking milestones and delivering a strong financial performance across our businesses is a matter of immense pride for us. Our CV and export volumes were at an all-time high, reflecting the deep trust our customers place in us. The Company delivered significant growth in Power Solutions, Aftermarket and Electric Mobility businesses. Our Defence order pipeline is at its all-time high, signifying ability to deliver superior growth in the coming years. Our entry into Indonesia gives further boost to our ambition in global markets. The record financial performance is backed by relentless innovation, unwavering focus on customer satisfaction, and ability to accelerate our ambition in global markets. We are well-positioned to sustain profitable growth and create long-term value.”
Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland Limited said, “FY26 has been a defining year for us, marked by record-breaking achievements across revenue, EBITDA, profitability and cash generation. Our strong margin expansion reflects the success of our premiumization strategy, the resilience of our operations, and the growing strength of our diversified business portfolio. A record cash surplus of nearly Rs. 6,000 Cr provides us with significant firepower for enhanced investments in products, technology and future-ready solutions, while continuing to elevate customer experience. With consecutive three years of record performance, we are more confident than ever in our ability to strengthen our technology leadership, gain market share and further enhance price realization through superior value delivery.”
Focus on Premiumisation and Future Technologies
Commenting on the company’s performance, Dheeraj Hinduja said the company’s record-breaking milestones reflect strong customer trust and the continued growth of its diversified businesses, including power solutions, aftermarket operations, and electric mobility.
He also highlighted that the company’s defence order pipeline is currently at an all-time high, strengthening visibility for future growth. The company’s recent entry into Indonesia is expected to further support its international expansion plans.
Shenu Agarwal stated that FY26 marked a defining year for the company, with strong margin expansion driven by premiumisation, operational resilience, and improved value delivery.
According to him, Ashok Leyland’s growing cash reserves will support increased investments in products, advanced technologies, and future-ready mobility solutions, while helping the company strengthen market share and technology leadership.
Dividend Announcement
The Board of Directors declared a second interim dividend of Rs. 2.50 per share for FY26. Combined with the earlier interim dividend announced during Q3, the total dividend for the financial year stands at Rs. 3.50 per share, representing 350 per cent on the face value of Rs. 1 per share.
