Truck-maker Ashok Leyland on Friday, 14 August reported a net profit of ₹609 crore for Q1 FY27, marking a 2.59% year-on-year (YoY) rise from the ₹594 crore net profit reported in the corresponding quarter of the previous financial year.
The firm’s revenue from operations meanwhile grew more than 10.4% YoY to ₹9,634 crore during the quarter under review, as against ₹8,724.5 crore reported in the year-ago period.
The company reported a record Q1 FY27, with commercial vehicle volumes reaching an all-time high of 48,763 units, up from 44,238 in the corresponding quarter last year.
However, the company said in an exchange filing that rising material costs weighed on operating margins. EBITDA margin declined to 10.1% in Q1 FY27, compared with 11.1% in Q1 FY26, while EBITDA stood at ₹970 crore.
According to an exchange filing, Ashok Leyland strengthened its balance sheet in Q1 FY27, with net cash rising to ₹2,252 crore, marking a positive year-on-year improvement of ₹1,432 crore.
The company reported strong volume growth across key segments. MHCV truck volumes, excluding defence, increased 15%, while domestic LCV volumes grew 21% YoY. LCV volumes stood at a record 18,874 units during Q1 FY27, the highest-ever quarterly volume for the segment. Exports during the quarter stood at 2,461 units.
Ashok Leyland’s Power Solutions, Aftermarket and Defence businesses also made strong contributions to its overall financial performance.
During Q1 FY27, the company introduced an industry-first Air Suspension Technology in its multi-axle trucks, aimed at offering customers higher payload capacity and a lower total cost of operations.
The company also continued expanding its distribution network, adding 33 new touchpoints during the quarter, further strengthening its market reach.
Shenu Agarwal, Managing Director and CEO of Ashok Leyland, said the Indian commercial vehicle (CV) industry remained resilient in Q1 FY27 despite geopolitical headwinds, reflecting strong underlying fundamentals and sustained growth potential.
He noted that rising material costs remain a key concern, but said the company is taking several measures to improve price realisation, strengthen cost efficiencies, optimise its product and business mix, and build inventory based on market opportunities.
Agarwal said that while the company remains focused on addressing near-term challenges, its long-term strategy remains unchanged, with continued emphasis on premiumisation, delivering superior products and services to customers, and maintaining operational discipline.
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