Ashok Leyland Delivers Record-Breaking Q3, Maintains 40% Bus Market Share

Ashok Leyland, the flagship commercial vehicle manufacturer of the Hinduja Group, has reported its strongest-ever third-quarter performance for FY26, driven by robust demand, improved operational efficiency, and sustained focus on profitable growth.

The company recorded revenue, profit, and volume growth across key segments, reinforcing its leadership position in the Indian commercial vehicle industry.

For the quarter ended December 2025, Ashok Leyland recorded its highest-ever Q3 revenue of ₹11,534 crore, marking a 22% growth compared to ₹9,479 crore in the same period last year.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose to ₹1,535 crore, reflecting a 27% increase year-on-year, with margins improving to 13.3%.

Notably, this marks the company’s twelfth consecutive quarter of double-digit EBITDA performance.

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Ashok Leyland – Q3 FY26 Performance

*FY25 net profit calculated basis 4% growth.

Profitability Remains Strong Despite One-Time Impact

Ashok Leyland reported a net profit of ₹796 crore during the quarter, reflecting a 4% year-on-year increase despite absorbing a one-time charge of ₹308 crore related to the implementation of the new Labour Code.

The company also significantly strengthened its financial position, ending the quarter with a net cash balance of ₹2,619 crore, compared to ₹958 crore during the corresponding period last year.

Strong Volume Growth Across Segments

The company witnessed substantial growth across both Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments.

MHCV volumes increased by 23% to 32,929 units, outperforming industry growth and contributing to market share expansion. LCV volumes grew even faster, rising 30% to 20,518 units, once again exceeding overall industry growth trends.

Exports also showed positive momentum, with volumes increasing 20% to 4,965 units, highlighting Ashok Leyland’s strengthening international footprint.

The company maintained a domestic MHCV market share of over 30% while continuing to lead the bus segment with a strong 40% market share during the quarter.

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Product Innovation and Future Growth Strategy

Ashok Leyland recently expanded its product portfolio with the launch of the new HIPPO and TAURUS range in the tipper and tractor-trailer segments, aimed at strengthening its presence in infrastructure and long-haul logistics applications.

Additionally, its Defence, Power Solutions, and Aftermarket businesses continued to deliver steady performance.

Executive Chairman Dheeraj Hinduja emphasised that favourable market conditions and strong customer engagement are supporting sustained growth across MHCV, LCV, and defence segments.

He also highlighted the company’s expanding pipeline of products across both conventional and alternative propulsion platforms, including its electric vehicle subsidiary.

Switch Mobility, which has begun international bus deliveries and achieved positive financial performance over the first nine months.

Managing Director and CEO, Shenu Agarwal, noted that GST rationalisation has stimulated freight demand and triggered a fresh replacement cycle within the commercial vehicle sector.