Ashok Leyland Limited (ASHOKLEY)
Mid CapAuto stocks · Mid cap · NSE
Ashok Leyland is a leading Indian commercial vehicle manufacturer, producing MHCVs, LCVs, buses, and defense vehicles. The company also operates in non-CV segments including aftermarket, power solutions, and financial services through subsidiaries like Hinduja Leyland Finance and Switch Mobility.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 22/100margin compression · Rev +12% YoY · PAT +2% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13,070 Cr | +11.6% | -24.2% |
| EBITDA | ₹2,410 Cr | +10.9% | -27.1% |
| Operating margin | 18.0% | -100 bps | -100 bps |
| PAT | ₹668 Cr | +1.5% | -51.6% |
| PAT margin | 5.1% | -51 bps | -290 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Ashok Leyland achieved all-time high CV volume, revenue, profit, and cash surplus in FY26, marking its best annual performance. Q4 FY26 saw strong revenue and EBITDA growth, driven by domestic MHCV and LCV volume increases.
While FY26 was a record year with broad-based growth and improved margins, management expresses 'cautious optimism' for FY27. Significant macroeconomic headwinds like commodity price volatility, diesel price increases, and international logistics issues pose near-term challenges to demand and profitability, despite strong underlying demand resilience.
Revenue by Business Segment (FY26)
Latest issuer-disclosed distribution across 5 reported categories.
New Product Launches
Launched HIPPO tractors, TAURUS tippers, new MAV trucks (280 HV), 4.1T Bada Dost, and Phoenix LCV for exports, with strong product pipeline.
Electric Mobility (Switch India)
Achieved net profitability in FY26 and market leadership in electric buses and 2-4 ton electric LCVs, with significant delivery scale-up.
Defense Business
Achieved 20% YoY revenue growth in FY26, with an 'ever strong' order book and tender win pipeline exceeding INR1,500 crores.
Non-CV Businesses
Domestic aftermarket revenue up 9.5% for FY26, Power Solutions up 16.4% YoY, and financial services subsidiaries showing robust AUM and PAT growth.
Service Network Expansion
Added over 100 touch points each for MHCV and LCV businesses, with over 45% in North and Northeast regions, totaling 2,104 touch points.
International Network Expansion
Expanded network to 4 new countries in FY26.
Battery Pack Manufacturing Facility
Announced groundbreaking for a greenfield battery pack manufacturing facility at Pillaipakkam, near Chennai, targeting Q2 FY27 start of production.
RAK Factory Utilization
Working to bring production back to 100% capacity utilization after local challenges in March/April.
GST 2.0 Rate Rationalization
Reduced vehicle prices by ~10%, acting as a trigger for replacement of aged fleets and driving strong demand.
Fleet Replacement Demand
Aging of the fleet is at an all-time high, contributing to resilient baseline demand for CVs.
Infrastructure & Construction Projects
Helping tipper demand and expected to drive strong growth in tipper and multi-axle segments.
Global Economic Uncertainties
Management is mindful of broader macroeconomic headwinds.
Commodity Price Volatility
Significant increases in commodity costs, predominantly steel, are expected to be a challenge for Q1 FY27.
Diesel Price Increases
Fuel price hikes are affecting current logistics operations and creating sentiment challenges in the market.
International Logistics Issues
Primarily affected Q4 export volumes in March and April, preventing shipments according to demand.
Margin Compression from Commodity Costs
Significant commodity cost increases, especially steel, are expected in Q1 FY27, posing a challenge to maintaining gross margins.
Sustaining Price Hikes
Ability to sustain the 1-1.5% price increase taken from April 1 for the full quarter is uncertain amidst demand and competitive pressures.
Impact of Diesel Prices on Demand
While fleet owners are currently sticking to plans, further significant diesel price increases could impact their economics and potentially soften demand.
Currency Depreciation
A weakening Rupee could further add to input costs.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results are primarily compared year-on-year, reflecting the seasonal nature of the commercial vehicle industry. Full-year results are also presented on a year-on-year basis to show overall annual performance trends.
Domestic MHCV Volume Growth (Industry)
Q4 FY26: +21.5% YoY; Full Year FY26: +12% YoY
Ashok Leyland Domestic MHCV Volume Growth
Grew in line with industry for FY26.
Ashok Leyland Domestic MHCV Market Share (Full Year FY26)
Overall: 30.8%; Trucks: 30.2%; Buses: 34.1% (leadership position)
Ashok Leyland Domestic LCV Volume Growth
Q4 FY26: +23% YoY (better than industry); Full Year FY26: +12% YoY (highest ever annual volume)
Record Performance in FY26
FY26 was a 'truly milestone year' with all-time high CV volume, revenue, profit, and cash surplus, marking the best annual performance in company history.
Cautious Optimism for FY27
Entering the new fiscal year with 'cautious optimism' due to positive demand drivers but mindful of macroeconomic headwinds.
Resilient Baseline Demand
The base level demand in the CV industry is 'very, very resilient' due to strong fundamentals like fleet aging and improved economics from GST.
Industry Pricing Discipline
The current challenging situation should encourage the industry to maintain discipline and consider multiple price hikes during the year to offset costs.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | FY26: 13% (+30 bps YoY) | Ability to neutralize Q1 FY27 commodity cost increases through sustained price hikes and internal cost controls. |
| MHCV Volume Growth & Mix | FY26: In line with industry; Q4: Strong growth in LCV/ICV. | Sustained growth momentum, particularly in the more margin-accretive heavy-duty truck segments (tippers, multi-axle), and moderation in LCV/ICV from Q4 levels. |
| Switch Mobility India Performance | FY26: Net profitable, 1,600 units order book. | Continued scaling of electric bus and LCV deliveries, sustained profitability, and progress on the battery pack manufacturing facility. |
| Defense Business Growth | FY26: +20% YoY revenue; Order book >INR1,500 crores. | Maintenance of the 20% growth trend and securing new orders to replenish the pipeline. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The new plant in Andhra Pradesh will reach a capacity of 200 units per month by the end of the year.
"will reach a capacity of 200 units per month by end of the year"
The new plant in Andhra Pradesh will reach a capacity of 200 units per month by the end of the year.
"will reach a capacity of 200 units per month by end of the year"
OHM is progressing well on its target of operating 2,500 plus buses within the next 12 months.
"target of operating 2,500 plus buses within the next 12 months"
Outcome check: Revenue YoY averaged 23.6% across 1 later quarter(s).
Ashok Leyland is confident to post a double-digit revenue growth in FY'26, driven by a strong defence order book and tender win pipeline.
"confident to post a double-digit revenue growth in FY'26"
Outcome check: Revenue YoY averaged 23.6% across 1 later quarter(s).
The newest and most modern bus plant at Lucknow, currently under construction, will be operational from Q3 FY'26.
"will be operational from Q3 FY'26"
The newest and most modern bus plant at Lucknow, currently under construction, will be operational from Q3 FY'26.
"will be operational from Q3 FY'26"
Trend score and candlestick chart
41NeutralSMA20 +8.1% / mo · MACD − · sector -3.3pp vs Nifty (3M)
Technical chart
ASHOKLEYdaily · 1Y · AUTO-16.8%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 47.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 rising (~7.5% over last month) — short-term momentum positive.
- RSI(14) at 47 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 22% off 52W high · 29% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 0.3% of the 30-week proxy.
- The 30-week proxy changed -1.4% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 40 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 40 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 28.2%.
- Growth contributes 19/25 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Promoter pledge is 40.1%.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 7th percentile of the scored universe and 3rd percentile within Auto. Main check: cash conversion is weak at 28/100.
Mixed Trust Lite: 4/4 latest quarters had positive YoY revenue growth. Key concern: Promoters have pledged 40.1% of holding.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Auto: 3rd pctile, median 74 · Mid: 2nd pctile, median 76
55 documents have extracted text, but claim history is not strong enough yet.
2/4 claims checked · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
- ▸OPM spread across recent quarters is 2%.
Trust risks
- ▸Promoters have pledged 40.1% of holding.
- ▸Operating cash flow is negative at ₹-4895 Cr.
- ▸Debt/equity is 4.49.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 26.70
- P/B
- 6.98
- EV/EBITDA
- 13.42
- Market Cap
- 99268.00Cr
Profitability
- ROE
- 27.40%
- ROCE
- 13.60%
- ROA
- 3.70%
- Dividend Y
- 2.07%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 84.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- 45.00%
Balance Sheet
- Debt/Equity
- 4.49
- Interest Coverage
- 2.23×
- Altman Z
- 1.86
- Book Value
- 24.20
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -4895.00 Cr
- EPS TTM
- 5.92
Shareholding
- Promoter Hold
- 51.51%
- Promoter Pledge
- 40.10%
- Momentum 52W
- 45%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.