Owing to rising material costs, the company’s EBITDA dipped to 10 per cent for Q1 FY27 as against 11 per cent in the year-ago period
Ashok Leyland, the flagship commercial vehicle manufacturer from the Hinduja Group, reported a 2 per cent increase in its consolidated net profit for the first quarter ended June. The bottom line came in at ₹668 crore as against the ₹658 crore it reported in the corresponding quarter last year. Consolidated revenue was up 10 per cent to ₹10,750 crore.On a standalone basis, the Chennai-based auto major reported its highest-ever net profit of ₹609 crore as against ₹594 crore in the same quarter previous year. Revenue was also the highest-ever at ₹9,634 crore (₹8,725 crore).However, owing to rising material costs, EBITDA dipped to 10 per cent for Q1 FY27 as against 11 per cent in the year-ago period.The company strengthened its cash position with net cash of ₹2,252 crore at the end of Q1 FY27, a positive swing of ₹1,432 crore on a year-on-year basis.Volumes soarThe company reported a record Q1 with highest-ever commercial vehicles volume of 48,763 units compared to 44,238 units in the same period last year, said a release. The exports volume in Q1 was at 2,461 units.The company has delivered another strong quarter, underpinned by disciplined execution and effective cost management, said Dheeraj Hinduja, Chairman of the company. Demand across key segments remains robust, and future prospects continue to be encouraging. Government initiatives such as Parivartan, he believes, will further accelerate fleet modernisation and support the long-term growth of the commercial-vehicle industry.The company’s electric mobility subsidiary, Switch Mobility, also continues to gain traction.While rising material costs remain a concern, Ashok Leyland is taking several initiatives towards better price realisation, rigorous cost-saving efforts, product and business mix improvement, and opportunity-based inventory build-up, said Shenu Agarwal, Managing Director & CEO, Ashok Leyland.Investments in subsidiariesThe company announced investments of up to £25 million (approximately ₹325 crore) in Optare Plc. UK, subsidiary, as equity in one or more tranches.It also announced investments of up to ₹500 crore in equity shares of Hinduja Housing Finance Ltd, a step-down subsidiary, by way of secondary purchase of shares from Hinduja Leyland Finance Ltd, a material subsidiary, in one or more tranches.Published on August 14, 2026
