Ashok Leyland shares surge 2%, up 5% in a month; what’s driving the rally on Tuesday?

Ashok Leyland shares were trading in the green on Tuesday, June 16, after the commercial vehicle manufacturer, along with its electric mobility arm Switch Mobility, signed a Memorandum of Understanding (MoU) with the government to replace old trucks and buses in the Delhi–NCR region.

“The first Memorandum of Understanding (MoU) under the Government of India's scheme for replacement of old trucks and buses in the Delhi–NCR region was signed today between the Ministry of Road Transport and Highways (MoRTH) and Ashok Leyland, along with Switch Mobility, a subsidiary of Ashok Leyland,” the government said in a statement.

With this signing of the MoU, Ashok Leyland and Switch Mobility became the first original equipment manufacturers (OEMs) to partner with the government for the implementation of the scheme.

Discount details

Under the agreement, the companies will provide an 8% discount on the ex-showroom price of eligible trucks and buses purchased under the scheme. For electric vehicles, the discount shall be capped at the discount applicable to an internal combustion engine (ICE) vehicle of the equivalent gross vehicle weight (GVW) category.

Further, in addition to the 8% discount offered by participating OEMs, the government will provide a 5% interest subvention and fixed monthly fuel vouchers for a period of five years. Participating state governments will provide up to 100% concession on motor vehicle tax for a period of ten years and waiver of registration fees for eligible beneficiaries under the scheme.

The ministry also said that the signing of the first MoU marks an important milestone toward the operationalisation of the scheme.

Aim of the scheme

The initiative aims to cut down on vehicle pollution and help update the fleet in the Delhi–NCR area by encouraging truck and bus owners who have vehicles that meet Bharat Stage-IV (BS-IV) or older emission standards to replace them with Bharat Stage-VI (BS-VI) or cleaner vehicles, including electric ones.

The ministry added that more automobile OEMs are expected to join the scheme in the coming days, enabling wider participation and greater adoption of cleaner transport technologies.

According to government estimates, around 2.07 lakh vehicle owners, including nearly 1.91 lakh trucks and 16,329 buses, are expected to benefit from the programme.

Ashok Leyland share price trends

At 10:45 AM, Ashok Leyland shares were trading at ₹158.99 apiece on the National Stock Exchange, rising 0.82%. After opening at ₹160, the stock has gained 2% to its intraday high of ₹160.89 per share.

For a month’s time, shares of the company have climbed 5%, while from the beginning of the year, Ashok Leyland shares have tumbled 14%.

Shares of the company had touched their one-year high of ₹215.42 apiece on February 11, 2026, while their 52-week low of ₹114.96 was hit on August 11, 2025.

Ashok Leyland Q4 FY26 earnings

The Indian flagship of the Hinduja Group had reported a record quarterly standalone profit after tax of ₹1,404.72 crore in the final quarter of the financial year 2025-26, up 12.75% year-on-year (YoY). The company had posted a net profit of ₹1,245.87 crore a year back.

Its revenue from operations advanced 18.92% to ₹14,160.49 crore in Q4 FY26, compared to ₹11,906.71 crore in the corresponding period last year.

Ashok Leyland posted an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of ₹2,066 crore for Q4 FY26, reflecting a growth of 15% from ₹1,791 crore for the same period last year.

Overall commercial vehicle (CV) volumes touched a new all-time high of 220,437 units in FY26, surpassing the previous peak of 197,366 units in FY19. The CV volumes in FY26 ascended 13% from last year. LCV volumes also set a new benchmark, reaching 74,322 units, well above the previous high of 66,633 units in FY24.

Ashok Leyland has a total market capitalisation of ₹93,464.77 crore as of June 16, 2026, according to data on the NSE.