The company’s total sales of 21,038 units were ahead of the Nomura estimate of 20,000 units. M&HCV sales, including exports, jumped 46% year-on-year to 13,719 units from 9,381 units in August 2025.
M&HCV trucks led the growth, with sales rising 60% to 10,748 units, while M&HCV bus sales increased 12% to 2,971 units. Light commercial vehicle (LCV) sales rose 25% to 7,319 units.
Domestic sales were also strong
Total domestic vehicle sales increased 43% year-on-year to 19,438 units, with M&HCV volumes rising 55% to 12,408 units and LCV sales climbing 25% to 7,030 units.
On a cumulative basis, total domestic sales for the April-August period rose 22% to 83,720 units. Domestic M&HCV sales increased 22% to 50,886 units, while LCV volumes rose 24% to 32,834 units.
Despite the strong sales numbers, shares of Ashok Leyland fell nearly 4% after the announcement. As of 2:24 pm, the stock was trading at ₹168.65 on the NSE, down ₹6.99, or 3.98%.
The stock’s weakness comes against a backdrop of continuing concerns around input costs and their impact on margins.
Margin concerns for second quarter
Earlier this month, Ashok Leyland Managing Director and CEO Shenu Agarwal said the company could face fresh margin pressure in the second quarter as natural rubber prices have climbed sharply, even as prices of some other raw materials, including precious metals used in emission-control systems, have eased.
To offset higher costs, the Chennai-based truck and bus maker has already raised prices during the current financial year. Agarwal said prices for its M&HCVs have been increased by around 2-3% since April, while LCV prices have risen by about 0.5%.
The company has not ruled out further price increases and plans to manage the cost pressure through a combination of pricing, product mix and existing low-cost inventory.At the same time, Agarwal said demand remains strong enough to provide some cushion against the commodity headwinds, with the company expecting the commercial vehicle market in the second quarter to perform better than in the first quarter both in terms of growth and absolute volumes.
The August sales performance follows a largely in-line June quarter for Ashok Leyland, when the company reported record revenue and commercial vehicle volumes, although higher material costs weighed on margins.
Consolidated net profit rose 2.59% year-on-year to ₹609 crore in Q1 FY27 from ₹594 crore a year earlier, marking the company’s highest-ever first-quarter profit.
Commercial vehicle volumes also reached a record 48,763 units, compared with 44,238 units in the year-ago quarter. M&HCV truck volumes, excluding defence, grew 15% year-on-year, while domestic LCV volumes increased 21% to a record 18,874 units.
Exports stood at 2,461 units in Q1 FY27, while the Power Solutions, Aftermarket and Defence businesses also contributed to the company’s overall performance.
