Ashok Leyland posted a 22% year-on-year jump in revenue to ₹11,534 crore and a 4% rise in net profit to ₹796 crore for the third quarter of FY26, marking its strongest-ever Q3 performance. Profit before tax surged 38% to ₹1,373 crore, while operating margins continued to expand despite a one-time charge during the quarter.

Record revenues, margins expand

The commercial vehicle major reported an all-time high Q3 revenue of ₹11,534 crore, compared with ₹9,479 crore in the corresponding quarter last year. EBITDA rose 27% year-on-year to ₹1,535 crore from ₹1,211 crore, with margins improving to 13.3% from 12.8% — marking the 12th consecutive quarter of double-digit EBITDA margins.

Net profit came in at ₹796 crore, up 4% over the previous year, after accounting for a one-time charge of ₹308 crore related to the new Labour Code. Profit before tax climbed sharply by 38% to ₹1,373 crore.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “Market conditions continue to be favourable, and we are optimistic that this strength will sustain in the medium term across all our businesses, including MHCV, LCV and Defence. Our strong and consistent growth in volumes and profitability underscores the competitiveness of our portfolio, which delivers superior performance and customer value, reinforced by deep and effective customer engagement across all segments.”

Volume growth outpaces industry

Growth was driven by strong volume expansion across segments. Medium and heavy commercial vehicle (MHCV) volumes rose 23% to 32,929 units, higher than industry growth, enabling market share gains. The company’s domestic MHCV market share remained above 30%, according to the Chennai-based CV maker.

Light commercial vehicle (LCV) volumes increased 30% to 20,518 units, again outpacing broader industry growth trends. Export volumes grew 20% to 4,965 units during the quarter.

Ashok Leyland also maintained leadership in the bus segment with a 40% market share in Q3.

According to Shenu Agarwal, Managing Director & CEO, Ashok Leyland, “The GST rationalization has not just lowered prices but also brought a fillip to overall freight demand, triggering a fresh replacement cycle in the CV industry. With supportive macroeconomic fundamentals and improving customer sentiment, we remain confident about the medium- to long-term growth prospects of the CV industry.”

Balance sheet strengthens; new rollouts in focus

The company’s net cash position improved significantly to ₹2,619 crore at the end of December 2025, compared with ₹958 crore a year earlier, reflecting stronger cash generation.

 “We are executing a structured pipeline of product introductions across conventional and alternative propulsion platforms to further strengthen our leadership in the domestic market and accelerate our expansion in international markets. Our electric vehicle arm, Switch, has a healthy order book and a well-defined product roadmap. It has started delivering buses in international markets and has achieved positive EBITDA and PAT over the first nine months,” added Hinduja.

During the quarter, Ashok Leyland launched its new HIPPO and TAURUS product range in the tipper and tractor-trailer segments. Its defence, power solutions and aftermarket businesses continued to perform steadily.