Vodafone Idea, Ashok Leyland among 36 NIFTY500 firms consistently reducing debt since Sept 2024

Ashok Leyland, Delhivery, Vodafone Idea (Vi), Indian Oil and Larsen & Toubro (L&T) are among the top 36 companies in the NIFTY500 index that have been reducing their debt consistently since the September quarter of 2024, data from Ace Equity showed.

Consistent reduction in total debt of a company indicates that the management is prioritising financial stability and long-term value over aggressive, debt-fuelled expansion. It points to robust overall health, reflecting lower insolvency risk, reduced interest expenses and greater flexibility to navigate economic downturns or fund future growth, analysts noted.

Less debt directly reflects in high profitability for a company as its lower interest payments improve net profit margin and give a boost to the company's earnings per share (EPS).

Lower debt levels also reflect that the company's business is generating strong and reliable cash flow capable of comfortably covering operational needs.

Ashok Leyland's debt has come down from ₹1,670 crore at the end of the September 2024 quarter to ₹1,151.70 crore at the end of the March quarter, marking a total reduction of 31%.

Its net profit during the same period has risen to ₹1,404.72 crore at the end of Q4FY26 compared with ₹706 crore at the end of the September quarter in 2024.

Delhivery posted a net profit of ₹73 crore at the end of the March quarter compared with a net profit of ₹10 crore at the end of the September quarter in 2024.

Indian Oil's total debt at the end of the March quarter came in at ₹1,10,668.22 crore, marking a reduction of 22% from ₹1,42,726.59 crore at the end of Q2FY25.

The company recorded net profit of ₹2,424 crore at the end of the March quarter as against a loss of ₹170 crore in Q2FY25.

The company posted a net profit of ₹5,326 crore at the end of the March quarter compared with a net profit of ₹3,395 crore at the end of Q2FY25.

The country's third largest wireless telecom services provider reported a net profit of ₹52,022 crore in the March quarter compared with a loss of ₹7,176 crore in Q2FY25.

Radico Khaitan, The Phoenix Mills, TBO Tek, Great Eastern Shipping, Varun Beverages, HCL Tech, Welspun Living and New India Assurance are also some of the prominent companies that have been reducing their debt consistently.