Ashok Leyland Ltd

Ashok Leyland Ltd closes trading window for Designated Persons from October 1, 2026 till 48 (forty-eight) hours after the unaudited financial results of the Company for the quarter and half year ending September 30, 2026 becomes generally available information

Rating action details

• Long Term / Short Term Bank Facilities: CARE AA+; Stable / CARE A1+; Reaffirmed (₹3,700 crore).
• Long-term bank facilities: Withdrawn.
• Short Term Bank Facilities: CARE A1+; Reaffirmed.
• Non-convertible debentures: Withdrawn.
• Commercial Paper: ₹2,000 crore; CARE A1+; Reaffirmed.
• Withdrawals are for facilities not availed and/or repaid.
• Rating Agency: CARE Ratings Limited.

Meeting Details

• Date: 23 September 2026 (Wednesday)
• Time: 09:30 to 17:50 HKT
• Venue: Grand Hyatt, 1 Harbour Road, Wan Chai, Hong Kong
• Mode: Physical
• Organizer: CLSA 33rd Investor Forum 2026
• Type: Group investor forum

Participants

• Key company participants: various management representatives

Purpose

• Purpose: Discussion at CLSA 33rd Investor Forum 2026

Additional Notes

• Presentation: Not applicable; no presentation intended

Meeting Details

• Date and time: 22 September 2026, 10:00–16:50 HKT
• Mode: Physical; Venue: Island Shangri-la, Hong Kong
• Event: Bank of America 2026 Asia Pacific Conference
• Details: Schedule of investors meeting with Ashok Leyland

Participants

• Key company participants: Various

Purpose

• Purpose: Investor interaction; schedule at Bank of America Asia Pacific Conference

Additional Notes

• Presentation: Not applicable; no presentation intended

Meeting Details

• Date: 21 September 2026 (Monday)
• Time: 10:00 to 18:00 IST
• Mode: Physical
• Organizer: Anand Rathi Annual Flagship Conference G-200 Summit 2026
• Venue: Taj Santacruz, Mumbai
• Presentation: Not applicable; No presentation intended

Participants

• Details of participants: Various

Purpose

• Purpose: Investor meeting with several funds/investors

Additional Notes

Sales/Volume Performance

• August 2026 total Vehicles (Domestic + Exports): 21,038 units, up 38% YoY.
• M&HCV Trucks monthly: 10,748 units, up 60% YoY.
• M&HCV Bus monthly: 2,971 units, up 12% YoY.
• Total M&HCV monthly: 13,719 units, up 46% YoY.
• LCV monthly: 7,319 units, up 25% YoY.
• Total Vehicles cumulative: 89,391 units, up 20% YoY.
• M&HCV Trucks cumulative: 44,511 units, up 32% YoY.
• M&HCV Bus cumulative: 10,902 units, down 17% YoY.
• Total M&HCV cumulative: 55,413 units, up 18% YoY.
• LCV cumulative: 33,978 units, up 23% YoY.

Meeting Details

• Date and time: September 4, 2026, 15:00–16:30 IST
• Type and mode: Investor meeting; physical attendance
• Event/organiser: ICICI Securities Auto Tour
• Venue: Ashok Leyland Corporate Office, Guindy, Chennai
• Participants: Various
• Purpose: Schedule investor meeting with multiple funds/investors
• Presentation: Not applicable; no presentation planned

Financial Performance

• Q1 FY27 revenue INR 9,634 crores, up 10% YoY
• EBITDA INR 970 crores; margin 10.1% (down 100 bps YoY)
• PBT INR 830 crores; up 4% YoY
• PAT INR 609 crores; up 3% YoY
• Material cost 71.5% of revenue; up 90 bps YoY; in line with Q4
• Capex INR 153 crores in Q1
• Investments in subsidiaries INR 10 crores
• Net cash INR 2,252 crores at year-end; up INR 1,431 crores YoY

Operating Update

• Total CV volumes 48,673 units; new quarterly peak, includes defense
• MHCV domestic volume 22,998 units; +15% YoY
• LCV domestic volume 18,874 units; +21% YoY
• LCV VAHAN market share 13.2%; +30 bps YoY
• Exports volume 2,461; -18% YoY
• Network touch points 2,137 (MHCV 1,177; LCV 960)
• Air suspension trucks launched; HIPPO TAURUS growing; industry-first payload edge

Capex and Investments

• Capex outlay expanded; last 2 years INR 900–1,000 crores vs prior INR 400–500 crores
• Subsidiaries investments in Q1 INR 10 crores
• RAK GCC plant: capacity 600; run at 800 temporarily; aiming to normalize at 800
• Saudi plant acceleration being pursued to capture GCC demand

Balance Sheet and Cash Flow

• HLF AUM INR 60,310 crores; HHF AUM INR 16,157 crores
• HLF PPOP INR 587 crores; PAT INR 123 crores (+37% YoY)
• HHF gross income INR 470 crores; PAT INR 69 crores
• HLF/HHF consolidated NPAs 2.1% on book basis
• OHM Mobility: 1,900+ e-buses; 500 added in quarter
• Housing Finance merger with NDL Ventures progressing; approvals awaited

Outlook and Guidance

• Commodity pricing to continue challenging in Q2; improves from Q3 and Q4
• July price hikes: MHCV >1%; LCV >2%; cumulative FY start: MHCV 2.25%; LCV 3.5%
• Industry momentum expected to extend through Oct; high-base caution thereafter
• Focus on higher-margin segments (TAURUS, HIPPO); air suspension recovery expected
• Regulatory cost increases anticipated; aim to Maintain positive TCO for customers

Q&A Highlights

• Margin headwinds: inventory from opening stock mitigated commodity cost rises; price hikes 1.2% MHCV, 1%+ LCV in July
• Inventorization impact to reflect in future quarters; ~50% of cost rise covered by price increases and savings
• Q2 gross margin: challenge persists due to commodity costs; expect improvement from Q3/Q4; lean into high-margin products
• Exports rebound plan: GCC volumes recover as UAE plant returns to normal; accelerate Saudi plant capex
• LCV strategy: expand beyond 2–3.5T; VAHAN share gains; product pipeline under confidentiality

AGM Details

• AGM held on Aug 14, 2026 at 2:30 PM IST via video conferencing.

Key Resolutions

• Adoption of audited standalone and consolidated financial statements for FY2026.
• Confirm interim dividends of ₹1 and ₹2.50 per share, treated as final dividend.
• Appointment of director replacing Shom Ashok Hinduja, retiring by rotation, eligible for reappointment.
• Ratify remuneration payable to Cost Auditors Geeyes & Co. for FY2026.
• Approve NED remuneration up to 1% of net profits per year for five years from FY2026-27.
• Re-appoint Executive Chairman for three years from Nov 26, 2026 to Nov 25, 2029.
• Appoint K M Balaji as Whole-time Director and CFO for two years (May 28, 2026–May 27, 2028).

Dividend

• Dividend proposed: ₹1 and ₹2.50 per share, treated as final dividend.

Director Changes

• Shom Ashok Hinduja retires by rotation; eligible for re-appointment.

Auditors

• Remuneration ratified for Cost Auditors Geeyes & Co. for FY2026.

Voting Status

• Consolidated voting results to be intimated by Aug 18, 2026.

Financial snapshot

• Standalone revenue from operations: Rs 9,634.35 crore in Q1 FY27.
• Standalone Total Income: Rs 9,719.45 crore.
• Standalone PAT: Rs 609.11 crore; per-share Rs 1.04 basic/diluted.
• Standalone EBITDA: Rs 970 crore; EBITDA margin 10.1%.
• Net cash position: Rs 2,252 crore at 30.06.2026.
• CV MHCV volumes: 48,763 units; MHCV growth 15% YoY.
• LCV domestic volume growth: 21%; LCV volumes 18,874 units; exports 2,461 units.
• Consolidated Total Income: Rs 13,258.24 crore; Revenue from operations: Rs 13,069.59 crore.
• Consolidated PAT: Rs 533.19 crore; Consolidated EPS Rs 1.05.
• Consolidated CV segment PBIT (before interest): Rs 949.72 crore.
• Consolidated segment assets: CV Rs 26,003.31 crore; Financial Services Rs 72,296.59 crore.

Operational highlights

• Q1 FY27 saw record Commercial Vehicle volumes at 48,763 units.
• Exports volume contributed to consolidated performance with MHCV and LCV mix.
• Powered by Power Solutions, Aftermarket, and Defence segments alongside core CV volumes.
• Launched industry-first Air Suspension Technology in Multi Axle trucks.
• Network expansion: 33 new touchpoints added in quarter.

Corporate actions & regulatory

• NCLT approved scheme for HLF and NDL; meetings held July 30, 2026 with requisite majority.
• ELV Rules: Company evaluating EPR certificate models; pricing mechanism not yet defined; obligation pending framework details.