Ashok Leyland Q3 result: Net profit rises to ₹796 crore, revenue increases 22% YoY

The company achieved an all-time high net profit after considering a one-time charge of ₹308 crore towards the new labour code.

The Chennai-based company's revenue from operations rose 22% in the October-December period to ₹11,534 crore from ₹9,479 crore in the year-ago period. The auto major said it was the highest revenue recorded so far by the company.

Ashok Leyland reported stable operational performance in the December quarter as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), also known as operating profit, advanced 27% to ₹1,535 crore as against ₹1,211 crore a year earlier.

“This also is the 12th consecutive quarter of registering double-digit percentage EBITDA,” said Ashok Leyland.

The company's EBITDA margin improved to 13.31% on a year-on-year (YoY) basis in contrast to 12.78% reported in the same quarter of the previous fiscal year.

In Q3 FY26, MHCV volumes stood at 32,929 units, compared with 26,692 units in Q3 FY25, a growth of 23%. LCV volumes came in at 20,518 units as compared to 15,754 units in the same period last year, marking a strong 30% growth, which was also higher than industry volume growth as per VAHAN data.

Furthermore, export volumes rose to 4,965 units in Q3 FY26 from 4,151 units in Q3 FY25, reflecting a 20% increase year-on-year. The firm’s net cash stood at ₹2,619 crore at the end of the quarter, compared to ₹958 crore at the end of Q3 FY25.

Here's what management said

“Market conditions continue to be favourable, and we are optimistic that this strength will be sustained in the medium term across all our businesses, including MHCV, LCV, and Defence. Our strong and consistent growth in volumes and profitability underscores the competitiveness of our portfolio, which delivers superior performance and customer value, reinforced by deep and effective customer engagement across all segments,” said Dheeraj Hinduja, Executive Chairman of Ashok Leyland.

Hinduja also said the company is executing a structured pipeline of product introductions across conventional and alternative propulsion platforms to strengthen its leadership in the domestic market and accelerate expansion in international markets.

He added that the electric vehicle arm, Switch, has a healthy order book and a well-defined product roadmap, has commenced bus deliveries in international markets, and has achieved positive EBITDA and PAT over the first nine months.

Following the earnings, shares of Ashok Leyland slipped 2.21% on NSE to ₹205.09 apiece.