Ashok Leyland Ltd.Revenue +10% Record, EBITDA Flat at 10.1% Margin

Ashok Leyland reported record Q1 FY27 revenue of ₹9,634 Cr, up 10%, with an all-time high commercial vehicle volume of 48,673 units.

EBITDA was flat at ₹970 Cr, so the margin fell 100 bps to 10.1% on commodity costs, and profit after tax rose 3% to ₹609 Cr. Management said inventory built at lower cost, price increases of about 1.2% and cost savings offset commodity inflation, but only about four-fifths of the cost increase reached the P&L and Q2 will be the commodity peak, with softening from Q3. Domestic medium and heavy truck volume rose 15%, light commercial vehicle volume rose 21%, and exports fell 18% because the UAE assembly plant stopped in April and May.

Defence revenue rose 64% and Power Solutions revenue rose 51%. The industry grew more than 20% in June and July, and management expects high single-digit medium and heavy truck growth in the second half. Net cash rose to ₹2,252 Cr, and capex is set to keep increasing over the next two to three years.