Ashok Leyland Achieves All-Time High Profit in Latest Results

By Amit Jangra | Published Date : November 19, 2025

Ashok Leyland posted record ₹820 crore profit in Q2 FY26, driven by lower Switch Mobility losses and strong growth in revenue and commercial vehicle demand.

Ashok Leyland has reported its highest-ever consolidated net profit of ₹820 crore in the second quarter of FY26. This is about 7% higher than the ₹767 crore posted in the same quarter last year. The company said the improvement came mainly because losses from its Switch Mobility UK operations came down after the Sherburn facility was shut last year.

Strong Revenue Growth

Table of Contents

1. Strong Revenue Growth

2. Big Investment Plans Ahead

3. Operational Improvements Boost Numbers

4. Management Optimistic About Future

5. Exports and New Products Grow Fast

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The company also reported strong revenue numbers. Consolidated revenue from operations grew 13%, rising to ₹12,577 crore from ₹11,148 crore in Q2 FY25.
 Management said the better performance in the first half of FY26 was also helped by GST 2.0 reforms, which supported demand across several commercial vehicle categories.

Big Investment Plans Ahead

Ashok Leyland is also planning a large investment for setting up its upcoming battery manufacturing unit. The location will be announced in the next two months.
The company may invest around ₹5,000–10,000 crore over seven years, depending on market demand. The first phase alone will see nearly ₹500 crore invested in battery pack assembly.
 The firm has tied up with Chinese battery maker CALB, one of the top global suppliers for EV batteries.

Operational Improvements Boost Numbers

CFO Balaji K. M. said shutting down Switch UK operations and better profitability at Hinduja Leyland Finance helped the company post record results.
 Both MHCV and LCV industries showed healthy growth during the quarter.
 Ashok Leyland’s MHCV volumes grew 3%, while the LCV segment rose 6% year-on-year. The bus industry also continued its strong run, growing for the 18th straight quarter.

The company’s domestic MHCV market share stayed above 30% and it kept its leadership in the bus category.
 The wide range of Ashok Leyland trucks also helped maintain strong traction across markets.

Management Optimistic About Future

MD and CEO Shenu Agarwal said margin expansion is improving due to premium products, better network reach, cost optimisation and digital systems. He added the company is on track to reach its mid-teen EBITDA target and remains cash-positive.
 The board has also recommended a 100% interim dividend of ₹1 per share.

Exports and New Products Grow Fast

Exports rose sharply to 4,784 units, a jump of 45% year-on-year.
 The company is also expanding its lineup with new models in tippers, buses, LCVs and haulage.
 Its global manufacturing plan now involves moving Switch production to its Ras Al Khaimah unit.
 In India, the company is betting big on the tender for 10,900 electric buses under the PM e-Drive scheme.
 Overall, the company expects stable demand for all kinds of trucks across domestic and export markets.

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Frequently Asked Questions 

1. Why did Ashok Leyland’s profit increase this quarter?

Ans: Profit rose mainly because Switch Mobility’s UK losses reduced and overall demand for CVs improved.

2. What was the company’s Q2 FY26 net profit?

Ans: Ashok Leyland posted a record ₹820 crore net profit in the quarter.

3. Did revenue also grow in this period?

Ans: Yes, consolidated revenue increased by 13% to ₹12,577 crore.

4. What future plans has the company announced?

Ans: Ashok Leyland will invest in a new battery manufacturing unit and expand its product lineup across buses, LCVs and heavy vehicles.

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