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Ashok Leyland Standalone operating income for Q1FY27 came in at ₹ 9,634 crore

ICICIdirect Research 17 Aug 2026 DISCLAIMER

News: Ashok Leyland Standalone operating income for Q1FY27 came in at ₹ 9,634 crore, up ~10% YoY amidst 10% growth in volumes to ~49k units. Share of M&HCV in total volume mix for the quarter stood at 60% down ~660 bps QoQ. EBITDA for the quarter came in at ₹ 970 crore with margins at 10.1%, down ~450 bps QoQ. Consequent PAT in Q1FY27 came in at ₹ 609 crore up 3% YoY. 

View: Operationally, the company reported stable results with flat gross margins amid inventory built up at the start of quarter anticipating commodity price rise. Thus, on the gross margin front it was an outlier, while drop in EBITDA margins QoQ was a function of negative operating leverage given Q4 is the seasonally best quarter for the CV space. However, going forward, it anticipates hit on gross margins in Q2FY27 led by calibrated price hikes amid upbeat demand momentum. It guided for cumulative price hikes of 2.25% in MHCV and >3.5% in LCV (from the start of FY27, wherein in Q1 a price hike of 1.25% was taken) amid ongoing cost saving efforts and expected commodity normalization from Q3 onwards. Management expects high-single-digit MHCV industry growth in FY27 and continued share gains from new products and LCV expansion. With stable demand prospects and pressure on margins in the near term, stock is trading near to its fair value. 

Impact: Neutral

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