The company’s consolidated net profit rose 2.59% year-on-year to ₹609 crore in Q1FY27, from ₹594 crore a year earlier. This was also the company’s highest-ever Q1 profit.
Revenue from operations increased 10.4% YoY to a record ₹9,634 crore, from ₹8,724.5 crore in the corresponding quarter of the previous year.
EBITDA was largely flat at ₹969 crore compared with ₹970 crore a year ago. However, the EBITDA margin declined to 10.1% from 11.1% in Q1FY26, primarily due to higher material costs.
Ashok Leyland also reported its highest-ever quarterly commercial vehicle volumes at 48,763 units, compared with 44,238 units in the year-ago period.
Medium and heavy commercial vehicle (MHCV) truck volumes, excluding defence, grew 15% year-on-year, while domestic light commercial vehicle (LCV) volumes increased 21%. LCV volumes stood at a record 18,874 units during the quarter.
Exports stood at 2,461 units in Q1FY27. The company’s Power Solutions, Aftermarket and Defence businesses also contributed to the overall performance.
Chairman Dheeraj Hinduja said the company delivered another strong quarter, supported by disciplined execution and cost management. He said demand across key segments remained robust, while government initiatives such as Parivartan could further accelerate fleet modernisation and support long-term growth in the commercial vehicle industry.
Managing Director and CEO Shenu Agarwal said the Indian commercial vehicle industry remained buoyant despite geopolitical headwinds, highlighting the sector’s strong fundamentals and growth potential.
He added that rising material costs remained a concern, but the company was pursuing better price realisation, cost-saving initiatives and improvements in product and business mix to mitigate the impact.
Investments approved
Separately, Ashok Leyland’s board approved investments of up to £25 million, or approximately ₹325 crore, in UK-based subsidiary Optare Plc as equity in one or more tranches, subject to requisite approvals.
The board also approved an investment of up to ₹500 crore in equity shares of Hinduja Housing Finance Ltd. (HHFL), a step-down subsidiary, through the secondary purchase of shares from Hinduja Leyland Finance Ltd. (HLFL).
HLFL currently holds 100% of HHFL’s share capital. The proposed transaction will enable HLFL to generate funds for business growth and other requirements, which could indirectly support Ashok Leyland by allowing HLFL to increase lending to commercial vehicle customers.
Ashok Leyland currently indirectly holds 61.12% in HHFL. Following the proposed transaction, its direct holding is expected to be 8.90%, while its indirect holding will stand at 55.68%.
The transaction is expected to be completed by March 31, 2027.
