Ashok Leyland Q1 profit rises 2% as revenue jumps 10% to Rs 10,750 crore

Ashok Leyland, a Chennai-based automotive company, reported a modest 2% increase in its consolidated net profit to Rs 668 crore for the first quarter ended June, marking a slight improvement from Rs 658 crore in the same period last year. Revenue for the quarter surged 10% to Rs 10,750 crore, with Ashok Leyland achieving its highest-ever net profit of Rs 609 crore on a standalone basis, surpassing Rs 594 crore from the previous quarter.

EBITDA margin, however, declined to 10.1% due to rising material costs, down from 11.1% in the previous year.

Chairman Dheeraj Hinduja attributed the strong performance to disciplined execution and effective cost management. He noted that demand across key segments remains robust and future prospects remain encouraging, citing government initiatives like Parivartan, which will further accelerate fleet modernization and support the growth of the commercial-vehicle industry.

Switch Mobility, Ashok Leyland's electric mobility subsidiary, continues to gain traction. Managing Director & CEO Shenu Agarwal highlighted that while rising material costs are a concern, the company is implementing initiatives to improve price realization, cost-saving efforts, product and business mix improvement, and strategic inventory build-up. The company reported its highest ever sales of commercial vehicles at 48,763 units for the quarter, compared to 44,238 units in the same period last fiscal.

Ashok Leyland has also made strategic investments, including up to £25 million (approximately Rs 325 crore) in UK-based subsidiary Optare Plc and up to Rs 500 crore in Hinduja Housing Finance, a step-down subsidiary, through secondary share purchases.