Chennai: Commercial vehicle manufacturer Ashok Leyland on Saturday reported a 13 per cent year-on-year increase in consolidated profit after tax (PAT) to Rs 869 crore for the second quarter of FY27, supported by strong volume growth and improved market share.
The company, the flagship of the Hinduja Group, had posted a PAT of Rs 771 crore in the corresponding quarter of the previous fiscal.
Revenue from operations surged 39 per cent to Rs 13,364 crore in the July-September quarter, compared with Rs 9,588 crore a year ago. Commercial vehicle volumes grew 32 per cent to 64,677 units against 49,116 units in the year-ago period.
Profit before tax (PBT) rose 14 per cent to Rs 1,187 crore from Rs 1,043 crore in the corresponding quarter last year. EBITDA stood at Rs 1,350 crore, with a margin of 10.1 per cent, against Rs 1,162 crore and a margin of 12.1 per cent in the year-ago period.
Ashok Leyland outperformed the industry in the medium and heavy commercial vehicle (MHCV) segment, registering 44 per cent growth in volumes at 37,958 units against 26,307 units a year ago. This was higher than the industry’s growth of 39 per cent.
In the light commercial vehicle (LCV) segment, volumes increased 21 per cent to 21,371 units from 17,697 units in the corresponding quarter.
Domestic MHCV truck volumes surged 48 per cent, significantly ahead of the industry’s 41 per cent growth. The company’s domestic truck market share stood at 31.5 per cent, gaining 1.5 percentage points during the quarter, excluding defence.
Its LCV market share in addressable segments improved to 13.6 per cent, a year-on-year gain of 0.3 percentage points. The company also maintained its market share in the bus segment, excluding electric buses.
Exports increased 7 per cent to 5,102 units during the quarter.
The company said its defence, power solutions and aftermarket businesses continued to perform strongly. It also introduced new products across the tipper, bus, haulage and LCV segments and accelerated the expansion of its distribution network.
Ashok Leyland ended the quarter with net cash of Rs 3,546 crore, compared with Rs 990 crore in the corresponding period last year.
Mr. Dheeraj Hinduja, Chairman, Ashok Leyland, said “Our record Q2 performance reflects the strength of Ashok Leyland’s business fundamentals, competitive product portfolio and strong customer focus. Our robust balance sheet provides a solid foundation to pursue our long-term growth ambitions. We are encouraged by the promising performance of our international business and continue to strengthen our presence in key export markets. Switch Mobility is also progressing well, with a strong outlook for the electric mobility business. With positive momentum across our businesses, we remain confident of sustaining profitable growth and creating long-term value for our stakeholders.”
Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “Our record Q2 performance, coupled with market share gains and fifteen consecutive quarters of double-digit EBITDA margins, reflects our consistent focus on profitable growth. Our strong cash position gives us the financial flexibility to invest in future technologies, innovation and new products, further strengthening our competitiveness. We are further investing in innovative product platforms and world class service processes, which would help us in sustaining our growth momentum. ”
