Ashok Leyland shares rise 7% after steady Q1 results

Ashok Leyland saw its share price climb 7 percent to Rs 130 on August 18. The move came after the company reported its June quarter (Q1 results) that were broadly in line with expectations. Investors cheered the steady performance. Several brokerages turned upbeat and projected an upside of up to 15 percent from the day’s high.

The commercial vehicle maker posted a net profit of Rs 594 crore in Q1FY26. That is a 13 percent rise from Rs 526 crore in the same period last year. Revenue increased slightly to Rs 8,725 crore compared to Rs 8,599 crore. Operating margins improved to 11 percent, up from 10.6 percent. Cost control and pricing discipline helped push margins higher.

Brokerages positive with buy ratings

UBS retained its buy call on the stock. The brokerage set a target price of Rs 150. It said the company delivered a margin beat due to operational discipline. UBS expects growth in medium and heavy commercial vehicles to be in mid-single digits. The light commercial vehicle segment is expected to perform slightly better.

Product pipeline and EV momentum

Ashok Leyland is pushing ahead with new launches. In the higher horsepower MHCV range, the company is preparing 280 to 360 HP tippers, tractor trailers, and multi-axle vehicles. These are aimed at mining, construction, and logistics sectors. A new bi-fuel LCV product is also in development for large metros. Alongside this, upgraded models for international markets are planned.

A notable highlight of the quarter was Switch Mobility, the company’s EV arm. It turned profit before tax positive in Q1. The milestone shows traction in its electric vehicle business. Analysts see this as a crucial step for long-term growth in the mobility space.

Conclusion

Analysts remain confident about the stock’s prospects. The strong infrastructure push in India and new product rollouts are expected to support growth. International operations are also performing steadily.

For now, most brokerages recommend a buy. Some advise investors to hold until post-monsoon demand trends become clearer. But the broader view is positive. Ashok Leyland continues to be one of the more closely tracked stocks in the Indian automotive and commercial vehicle space.

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