Bengaluru, Feb 11, 2026, 14:41 IST
Ashok Leyland, the Indian flagship of the Hinduja Group, posted an all-time high net profit in the December quarter on Wednesday after lifting revenue, though costs rose on a one-time labour-code charge and pricier raw materials. Net profit rose 4.5% to ₹796 crore and revenue climbed 22% to ₹11,534 crore; the company took a one-time ₹308 crore charge linked to new labour codes and said expenses rose 20.1%, led by a 19.2% jump in raw material costs. (mint)
The numbers land in the middle of a crowded results week, with investors looking for quick signals on demand and pricing power, especially in cyclicals like autos and transport. Siddhartha Khemka, head of research at Motilal Oswal Financial Services, said markets could keep “a gradual upward bias” but “stock-specific action” would pick up as the earnings season moves into its final stretch. (mint)
Operating profit, measured by EBITDA (earnings before interest, taxes, depreciation and amortisation), rose 26.7% to ₹1,535 crore, while the EBITDA margin improved to 13.3% from 12.8%. The company also reported a one-time cost of ₹308 crore due to the new labour codes. (NDTV Profit)
Volumes did much of the work. Medium and heavy commercial vehicle (MHCV) volumes rose 23% to 32,929 units and light commercial vehicle (LCV) volumes climbed 30% to 20,518 units, outpacing the broader market, the report said, citing VAHAN data (a government vehicle-registration database used as a proxy for industry demand). Exports rose 20% to 4,965 units, while net cash — cash minus debt — stood at ₹2,619 crore at end-December. Executive Chairman Dheeraj Hinduja said market conditions were “favourable” and added that the group’s EV arm Switch had a “healthy order book” and had begun delivering buses in international markets. (Moneycontrol)
Profit came in below an IBES consensus estimate of ₹942 crore, while revenue was above the ₹11,276 crore estimate, an Economic Times live blog showed. (IBES is a service that compiles analyst forecasts.) (The Economic Times)
Ashok Leyland shares were down in afternoon trade, with the stock at ₹204.95 on the BSE and ₹206.73 on the NSE. Earlier in the session, the stock had risen around 2% ahead of the earnings announcement, Moneycontrol’s live blog showed. (mint)
Ashok Leyland sells trucks and buses in a market dominated by big fleet operators and tightly linked to freight, construction activity and replacement cycles. It competes most directly with Tata Motors and Volvo Eicher Commercial Vehicles in key truck and bus segments, where pricing and product mix can swing margins quickly.
The upside case hinges on demand holding up and costs staying contained. A sharper dip in freight activity, more volatility in steel and other inputs, or aggressive discounting by rivals could pressure margins, and the labour-code charge is a reminder that “one-time” items can recur in different forms.
