Ashok Leyland Ltd

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

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.

Meeting Details

• Date and time: Friday, 14 August 2026, 5:15 PM IST.
• Type: group earnings conference call, virtual.
• Organised by: IIFL Events for Ashok Leyland.
• Key company participants: MD & CEO, WTD & CFO, Investor Relations Team.
• Purpose: discuss 1QFY27 results with investors.

Meeting Details

• Friday, 14 August 2026, 5:30 PM IST
• Group virtual earnings conference call with management

Participants

• Key company participants include MD & CEO, WTD & CFO, and Investor Relations Team

Organizer / Event

• Ashok Leyland earnings conference call organized by IIFL Events

Purpose

• Discuss 1QFY27 results with analysts and investors

Liquidation of ALJD (associate)

• ALJD, an associate of Ashok Leyland Limited, has been voluntarily liquidated.
• Final dissolution order has been received from the National Company Law Tribunal.
• ALJD ceased to be an associate of Ashok Leyland Limited post-liquidation.
• No promoter-group benefit or change in shareholding pattern disclosed.
• Regulatory approvals: NCLT dissolution order.
• Event occurred on July 26, 2026, 12:34 hours.
• No financial impact details were disclosed.

Consolidated FY26 Financial Performance

• Revenue from contracts with customers: 48,238.61 Cr; up from 42,280.64 Cr.
• PAT: 3,471.03 Cr.
• EPS: 5.91 (basic and diluted).
• One-time Labour Codes impact: 350.51 Cr.
• TECOSIM acquisition: purchase consideration 173.24 Cr.
• Goodwill on TECOSIM: 131.60 Cr.
• Impairment for customer relationships: 22.12 Cr.
• HTL impairment noted.
• 1:1 bonus shares issued.
• Net debt position: (52,120.14) Cr.

AGM time change

• 77th AGM time rescheduled to 2:30 PM IST on 14 August 2026; all other details unchanged.

Arbitral award update

• Arbitral Tribunal awarded Ashok Leyland ₹222.65 crore plus 10% interest.
• Counterclaim by Delhi Transport Corporation rejected in full; costs ₹2.96 crore.
• Award dated 6 July 2026; company reviewing contents and final amount.
• Original claim ₹445 crore; tribunal allowed partial relief of ₹222.65 crore.
• Interest applies pre-arbitration, pendente lite, and post-award until payment.
• Status: evaluating final amount and options for remaining claim.