Mumbai: Ashok Leyland delivered its best-ever third quarter performance in Q3 FY26 with consolidated revenue from operations climbing to Rupees 14,830 crore, up 23.6 percent from Rupees 11,995 crore in Q3 FY25. Net profit also grew to Rupees 862 crore from Rupees 820 crore in the same quarter last year, marking a steady 5.2 percent year-on-year increase. The company had reported revenue of Rupees 12,577 crore and profit of Rupees 820 crore in Q2 FY26, and Rupees 11,709 crore and Rupees 658 crore in Q1 FY26 respectively. Strong commercial vehicle volumes and export gains contributed to this growth.
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Sequential growth builds amid cost controls and margin strength
On a quarter-on-quarter basis, revenue rose 17.9 percent from Rupees12,577 crore in Q2 FY26, while profit improved 5.2 percent from Rupees 820 crore. Total expenses increased to Rupees 13,490 crore from Rupees 11,556 crore in the previous quarter, reflecting higher input and employee costs. Despite this, the company maintained profitability, with operating margins (excluding financing) holding at 11.67 percent. EPS rose from Rupees 1.29 in Q2 to Rupees 1.38 in Q3, indicating shareholder value enhancement.
Operational drivers steady, exceptional items managed
The quarter included an exceptional loss of Rupees 325 crore related to the new labour codes. Despite this, profit before tax stood at Rupees 1,200 crore, up from Rupees 1,124 crore in Q2. Share of profits from joint ventures and associates added Rupees 4 crore to the bottom line. The company’s consolidated net worth improved to Rupees 12,917 crore, and it maintained a debt-equity ratio of 0.67, indicating a strong balance sheet position.
Nine-month performance reflects consistent execution
For the nine months ended December 31, 2025, Ashok Leyland posted consolidated revenue of Rupees 39,116 crore, up 15.6 percent from Rupees 33,840 crore a year earlier. Net profit for the same period rose 9.5 percent year-on-year to Rupees 2,340 crore. EPS for the nine-month period stood at Rupees 3.11, compared to Rupees 3.37 last year (adjusted for bonus shares). The consistent topline and operating profit growth across quarters underscores the company’s focus on execution and financial discipline.
Disclaimer: This report is based on publicly disclosed financial results by Ashok Leyland. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
