Ashok Leyland Achieves Record Q3 Revenue, Volume Grows By 23%

Ashok Leyland has reported its best-ever third-quarter performance for FY26, registering record revenues and profitability for the quarter ended December 31, 2025. The company posted standalone revenue of ₹11,534 crore in Q3 FY26, marking a 22 percent increase compared to ₹9,479 crore in the corresponding quarter of the previous year.

Profit before tax (PBT) rose 38 percent year-on-year (YoY) to ₹1,373 crore, while EBITDA reached ₹1,535 crore, translating to a margin of 13.3 percent. This marks the 12th consecutive quarter of double-digit EBITDA margins for the company.

Commenting on the company’s strong quarterly performance, Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said "Market conditions continue to be favorable, and we are optimistic that this strength will sustain 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.”

Net Quarterly Profit

Net profit for the quarter stood at ₹796 crore, reflecting a 4 percent increase over Q3 FY25. The result includes a one-time charge of ₹308 crore related to the implementation of the new Labour Code. Excluding this exceptional item, profitability would have been higher. The company’s net cash position strengthened significantly to ₹ 2,619 crore at the end of Q3 FY26, compared to ₹958 crore at the end of Q3 FY25, indicating improved liquidity and financial discipline.

Volume Growth and Market Share Gains

Ashok Leyland recorded strong growth across segments. Medium and Heavy Commercial Vehicle (MHCV) volumes stood at 32,929 units in Q3 FY26, up 23 percent from 26,692 units in Q3 FY25. The company outpaced industry growth, resulting in market share gains, with domestic MHCV market share remaining above 30 percent.

Light Commercial Vehicle (LCV) volumes grew 30 percent YoY to 20,518 units, exceeding industry growth as per VAHAN data. Exports also rose 20 percent to 4,965 units during the quarter. The company retained leade₹hip in the bus segment with a 40 percent market share during Q3.

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Product Expansion

Ashok Leyland recently introduced its Hippo and Taurus product range in the tipper and tractor-trailer segments. The Defence, Power Solutions, and Aftermarket businesses also continued to perform steadily. The company indicated that favourable market conditions, GST rationalisation, and improving freight demand are supporting a fresh replacement cycle in the commercial vehicle industry. It remains focused on profitable growth through product premiumisation, cost competitiveness, expanded service coverage, and diversification into non-CV businesses.