Ashok Leyland Q2 profit rises marginally to ₹771 crore, EBITDA rises 14%, margin expands by 50 bps

Ashok Leyland, the country's leading commercial vehicle maker, on Wednesday, November 12, reported net profit of ₹771 crore in the second quarter of current financial year, marking a marginal increase of 0.13% from ₹770 crore in the same period last year.

The Chennai-based company's revenue from operations rose 9% in July-September period to ₹9,588 crore from ₹8,769 crore in the year-ago period.

Ashok Leyland reported stable operational performance in September quarter as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also known as operating profit advanced 14% to ₹1,162 crore as against ₹1,017 crore, a year earlier.

The company's EBITDA margin improved by 50 basis points to 12.12%.

Ashok Leyland's board of directors approved an interim dividend of ₹1 per share and the company informed exchanges that the said interim dividend, would be paid, on or before December 11, 2025.

The company has fixed November 18 as the record date for determining the members eligible to receive the interim dividend.

"Both MHCV and LCV industry witnessed positive growth in Q2. Ashok Leyland volume in Q2 saw a jump of 3% in MHCV (from 25,542 to 26,307 units) and 6% in the LCV segment (from 16,629 to 17,697 units) on YoY basis," Ashok Leyland said.

The company added that bus industry showed impressive performance in second quarter the bus business grew for 18th consecutive quarter.

The company's exports during the quarter jumped 45% to 4,784 units.

The defence, power solutions and aftermarket businesses continue to perform well and are expected to post good growth in the current fiscal. The company expanded its product line up in Q2 by launching new products in tipper, bus, haulage and LCV segments. The expansion of distribution network is running ahead of the plan, the Chennai-based company added.

“We continue to see stable demand in all segments of trucks and buses. The industry has posted growth, albeit modest, and we are anticipating to witness better growth in the second half. Ashok Leyland has achieved its eleventh consecutive quarter of double-digit EBITDA. Our focus on profitability is reflected in record PAT for Q2FY26 and higher EBITDA margins, both sequentially and year-on-year," said Shenu Agarwal, Managing Director & CEO, Ashok Leyland.

"Margin expansion is being driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement. We believe we are well positioned to achieve our mid-teen EBITDA goal in the medium term. We remain cash positive," Agarwal added.

Ashok Leyland shares traded 1% lower at ₹144.55 after its earnings announcement.