Chennai: Ashok Leyland reported its strongest-ever quarterly and annual performance for FY26, posting a 13% year-on-year rise in consolidated net profit for the fourth quarter, supported by robust commercial vehicle demand, export growth and improved product mix. The Hinduja Group flagship also announced a second interim dividend for shareholders.

The company recorded a consolidated net profit of Rs 1,405 crore for the quarter ended March 2026, compared to Rs 1,246 crore in the same period last year. Revenue also surged significantly, reflecting strong performance across domestic and international markets.

Record quarterly revenue and operating performance

Ashok Leyland achieved its highest-ever quarterly revenue, EBITDA and cash generation in Q4 FY26. Revenue from operations increased 19% year-on-year to Rs 14,160.49 crore, driven by strong demand in the commercial vehicle segment and steady export momentum.

EBITDA rose 15% to Rs 2,066 crore, compared to Rs 1,791 crore in the previous year period. The company also generated cash of Rs 3,280 crore during the quarter, reflecting improved operational efficiency and stronger margins.

Company leadership attributed the growth to favourable market conditions, replacement demand in the commercial vehicle sector, and supportive policy environment.

Strong full-year FY26 performance

For the full financial year FY26, Ashok Leyland reported a net profit of Rs 3,566 crore, marking an 8% increase over FY25. This performance came despite a one-time impact of Rs 308 crore linked to implementation of the new Labour Code.

Annual revenue reached a record Rs 44,007 crore, up from Rs 38,753 crore in the previous year. EBITDA for the year also grew 13% to Rs 5,732 crore, highlighting sustained profitability across business cycles.

The company ended FY26 with a strong net cash position of Rs 5,899 crore, providing financial flexibility for future expansion and investments.

Vehicle sales hit all-time highs

Ashok Leyland reported record commercial vehicle sales of 220,437 units in FY26, surpassing its previous peak achieved in FY19. Total CV volumes grew 13% year-on-year, driven by demand recovery and fleet replacement activity.

The light commercial vehicle segment also reached a new milestone, with sales of 74,322 units compared to the earlier record of 66,633 units in FY24. Export performance remained strong, rising 18.5% to 18,082 units, reflecting improved global demand.

The company also highlighted strong growth in power solutions, aftermarket services and electric mobility businesses, contributing to overall revenue diversification.

Management highlights growth strategy

Management said the company’s focus on premiumisation and diversified offerings helped improve margins and strengthen long-term growth prospects.

According to leadership, defence order pipelines remain strong, while international expansion efforts, including entry into Indonesia, are expected to support future growth.

“Our CV and export volumes were at an all-time high, reflecting strong customer trust,” the company management said, adding that continued investments in technology and future-ready solutions will remain a priority.

Dividend announced for shareholders

The board of Ashok Leyland approved a second interim dividend of Rs 2.50 per share for FY26.

Including the earlier interim dividend paid in Q3, the total dividend for FY26 stands at Rs 3.50 per share. The payout reflects strong cash generation and confidence in the company’s financial stability.

Conclusion

With record revenues, strong profit growth and improved margins, Ashok Leyland closed FY26 on a high note, supported by rising demand in commercial vehicles, exports and diversified business segments. The dividend announcement further reinforces the company’s strong financial position and shareholder value focus.