Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 22 Sep - CARE reaffirmed ratings on ₹6,000 crore facilities; unavailed facilities withdrawn.
Source: Bse
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.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals16 Oct 2026 · screener
Latest result14 Aug, 01:06 pm IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags04 Oct 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Auto P/E 25.7 (n=127)
Technical timing lens
Trend score and candlestick chart
34Bearishfull bear SMA stack · SMA20 -9.9% / mo · MACD +
Stock trend: 25
Sector RS: 49
Sector 3M: -6.3% vs Nifty 500 -5.6%
Auto FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
ASHOKLEYD candles · FIT view-13.1%Latest close ₹147.72 on 2026-10-19
Bar
-0.4%
RSI
39
MACD hist
0.22
52W pos
15%
2026-10-19O ₹148.32H ₹149.40L ₹147.21C ₹147.72Vol 85.0L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
ASHOKLEYNifty AutoNifty 500
- ASHOKLEY
- -4.6%
- Nifty 500
- -5.6%
- Nifty Auto
- -5.4%
- Vs Nifty 500
- +1.0 pp
Chart stats
19 Oct 2026- From 52W high
- -31.4%
- 52W range position
- 17%
- ATR (14)
- 2.6%
- Volume vs 20D
- 0.67x
- Avg traded value
- ₹184 Cr
- 20D price channel
- ₹143.5 - ₹164.2
₹215.4
₹134.2 - ₹215.4
₹3.9
Latest completed session
20-session average
27.6% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is consistent.
Suggested next step
Verify management risk first
Do not let cheap valuation override weak Trust or governance evidence.
U-Score
Legacy · WATCHLIST41
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad22
Revenue +11.6% · PAT +1.5% YoY
Technical
Bearish34
Price trend and sector-relative-strength timing.
Valuation
Legacy model+35.3%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence48
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 22/100margin compression · Rev +12% YoY · PAT +2% YoY
Filed 14 Aug 2026
Open results browser →| 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.
Fundamentals
Valuation
- P/E
- 23.40
- P/B
- 6.12
- EV/EBITDA
- 12.41
- Market Cap
- 87039.00Cr
Profitability
- ROE
- 27.40%
- ROCE
- 13.60%
- ROA
- 3.70%
- Dividend Y
- 2.36%
Growth (CAGR)
- Revenue 5Y
- 24.00%
- EPS 5Y
- 84.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 45.00%
Balance Sheet
- Debt/Equity
- 4.49
- Interest Coverage
- 2.23×
- Altman Z
- 1.78
- 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
- 17%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 56.4k+16.1% vs prev
Net Profit
₹ CrLatest: 3,721+10.0% vs prev
Return on Equity
%Latest: 26.1-5.5% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 39. Wait for confirmation.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~11.0% over last month) — short-term momentum negative.
- RSI(14) at 39 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 31% off 52W high · 9% 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.
Nifty 500 leadership
Relative Strength & Trend Stage
58
RS percentile
Stage 1 Base / Transition
1M return
-9.4%
3M return
-4.6%
6M return
-17.5%
1Y return
+5.4%
RS 1D
0
RS 20D
0
Sector rank
#10
Industry rank
-
Stage evidence
- Price is 8.4% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed -3.4% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price below
Sector
neutral
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 107.25+0.22%
RS vs Nifty 500107
Valuation & peers
U-Score 41 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 41 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Distress Watch
Fundamental score breakdown
U band · WATCHLISTValuation7/30
Growth19/25
Quality13/20
Balance Sheet0/15
Cash Flow0/10
Piotroski
4/9 (+1)
Penalties
1
Raw sum
41
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
41/100 · legacy band WATCHLIST
Positive drivers
- Fair-value margin of safety is positive at 35.3%.
- Growth contributes 19/25 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Promoter pledge is 40.1%.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
Sector valuation model
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Primary lens
PE and PEG relative to growth, ROE, margins, and brand strength.
Secondary checks
Volume growth, pricing power, distribution, same-store or category growth.
Main risk check
Premium valuation needs durable growth and margin resilience.
PE
23.4
PB
6.1
EV/EBITDA
12.4
ROE
27.4%
ROCE
13.6%
FCF Yield
—
Debt/Equity
4.5
MoS
+35.3%
Score movement
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.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
41
Previous: 41
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
+35.3%
Previous: +35.3%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
40
40
40
40
40
40
40
41
41
41
41
41
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹56.78
-160.2% MoS
Growth-justified P/E
38.5
Growth-justified Value
₹228.22
+35.3% MoS
PEG
0.34
Comparable companies
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.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
FORCEMOT
Small
FORCE MOTORS LTD
Auto Components
match 113
80
21.1
26.1%
+52%
DEEP VALUE
BHARATFORG
Mid
Bharat Forge Limited
Auto Components
match 97
34
89.6
12.0%
-216%
WATCHLIST
MRF
Mid
MRF Limited
Auto Components
match 93
56
21.0
12.5%
+45%
FAIR VALUE
TIINDIA
Mid
Tube Investments of India Limited
Auto Components
match 92
34
67.0
9.9%
-80%
WATCHLIST
HEROMOTOCO
Large
Hero MotoCorp Limited
Two Wheelers
match 92
71
18.1
28.1%
+50%
UNDERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-06-13T22:53:34.810Z
Management commentary snapshot
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.
Current business mix
Revenue by Business Segment (FY26)
Latest issuer-disclosed distribution across 5 reported categories.
Commercial Vehicles (Implied)78.2%
Spares8.6%
Exports7.3%
Power Solutions3.2%
Defense (incl. subsidiary)2.7%
Growth engines
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.
Capacity and execution
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.
Tailwinds
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.
Headwinds
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.
Risk radar
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
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
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.
Sector KPIs management disclosed
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)
Management forward view
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.
Thesis monitor
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
project executionnot yet verifiablequantified
The new plant in Andhra Pradesh will reach a capacity of 200 units per month by the end of the year.
Timeframe: by end of the yearDirection: increaseConfidence: will reach
"will reach a capacity of 200 units per month by end of the year"
project executionnot yet verifiablequantified
The new plant in Andhra Pradesh will reach a capacity of 200 units per month by the end of the year.
Timeframe: by end of the yearDirection: increaseConfidence: will reach
"will reach a capacity of 200 units per month by end of the year"
revenue outlookdeliveredquantified
OHM is progressing well on its target of operating 2,500 plus buses within the next 12 months.
Timeframe: within the next 12 monthsDirection: increaseConfidence: progressing well on target
"target of operating 2,500 plus buses within the next 12 months"
Outcome check: Revenue YoY averaged 23.6% across 1 later quarter(s).
revenue outlookdeliveredquantified
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.
Timeframe: FY'26Direction: growthConfidence: confident
"confident to post a double-digit revenue growth in FY'26"
Outcome check: Revenue YoY averaged 23.6% across 1 later quarter(s).
project executionnot yet verifiable
The newest and most modern bus plant at Lucknow, currently under construction, will be operational from Q3 FY'26.
Timeframe: Q3 FY'26Direction: operationalConfidence: will be operational
"will be operational from Q3 FY'26"
project executionnot yet verifiable
The newest and most modern bus plant at Lucknow, currently under construction, will be operational from Q3 FY'26.
Timeframe: Q3 FY'26Direction: operationalConfidence: will be operational
"will be operational from Q3 FY'26"
Trust Score
48Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 5th percentile of the scored universe and 2nd percentile within Auto. Main check: balance sheet trust is weak at 22/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
71 docs text-extracted · 41 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
5th percentile
overall median 67 · Auto: 2nd pctile, median 74 · Mid: 1st pctile, median 76
Evidence depth
Financial-only
71 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
100% delivered or partly delivered
2/4 claims checked · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Needs extra due diligence; demand valuation comfort and recent improvement.
Read 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.
Promoter
35
weak · holding, pledge, alignment
Cash flow
28
weak · profit to cash conversion
Balance sheet
22
weak · leverage and solvency
Discipline
76
strong · capital discipline
Results
95
strong · quarterly consistency
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.
- ▸Altman Z is 1.78.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Ashok Leyland Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 16 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 16 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 3 Jul - Newspaper publication relating to 77th Annual General Meeting
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.