Ashok Leyland Q2 Results 2025: Ashok Leyland posts double-digit EBITDA for the 11th time, 3 things you should know about the results

News Topical, Digital Desk : Ashok Leyland reported strong Q2FY26 results, in line with expectations. The company's EBITDA margin reached a multi-quarter high, marking the 11th consecutive quarter of double-digit EBITDA. Margins improved due to volume growth, premium products, and cost optimization. However, profits remained flat, reflecting a one-time gain last year. The Export and Bus segments provided strong support during the quarter.

The company's profit remained nearly flat year-over-year at ₹771 crore. This might suggest a lack of profit growth, but there's something important about it: in Q2 last year, the company reported a one-time gain of ₹117 crore, while this year it suffered a one-time loss of ₹40 crore. This means operational growth was much stronger. Revenue increased to ₹9,588 crore, a 9% increase from ₹8,769 crore last year. EBITDA increased to ₹1,162 crore, a 14% increase. Margins also improved from 11.6% to 12.1%—a multi-quarter high.

Volume Growth - The key strength of the quarter
-8% YoY and 11% QoQ growth in total volumes
-3% growth in M&HCV (Medium & Heavy Commercial Vehicle) volumes -6
% YoY growth in LCV (Light Commercial Vehicles)
-Stunning jump of 45% in exports - 4,784 units
-Realisation increased slightly on a YoY basis, but marginally decreased on a QoQ basis.

Record performance in the Bus segment -Bus industry has grown for the 18th consecutive quarter. -Ashok Leyland: Market leader in the Bus segment -Maintains 30%+ market share in Domestic MHCV -The company is focusing on the premium segment, and its impact is clearly visible in the margins. The company said, "We are well-positioned to achieve mid-teen EBITDA margins in the medium term." Ashok Leyland also stated that its Defence, Power Solutions, and Aftermarket businesses will see strong growth this year. During the quarter, the company launched new products in the Tipper, Bus, Haulage, and LCV segments. These factors contributed to the margin increase: Premiumization (high-value products), Network growth , Operational efficiency, Cost cutting. 

What to look forward to: Changes in freight rates may impact demand in the CV industry. Increased discounting could put pressure on margins. The impact of the Dedicated Freight Corridor on truck demand remains to be tracked.

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