Ashok Leyland Ltd. share price target

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About the stock: Ashok Leyland (ALL) is a pure-play CV manufacturer FY25 product mix LCV goods 35%, trucks 50%, buses 15% Q3FY26 Results: Company reported healthy operational performance in Q3'26. Standalone revenues for Q3FY26 came in at 11,534 crore, up ~22% YoY amidst 24% growth in volumes to ~58k units. EBITDA for the quarter came in at 1,535 crore with margins at 13.3%, up 120 bps QoQ. Consequent PAT in Q3FY26 came in...

Strong volume-led performance; MHCV up 23% YoY & LCV by 20% YoY, raising revenue by 22% YoY, realisations muted down by 2% YoY

We maintain our BUY rating on the stock.

Ashok Leyland (AL)’s 3QFY26 PAT of INR 10.3b was ahead of our estimate of INR9.6b, led by better-than-expected margins and higher other income. EBITDA margin improved 50bp YoY to 13.3% despite input cost pressure, and it was primarily driven by the operating leverage benefit.

Ashok Leyland enters H2FY26 on a strong footing, supported by improving freight activity, GST-led demand uplift, and a healthy order environment across trucks, buses and LCVs.

About the stock: Ashok Leyland (ALL) is a pure-play CV manufacturer FY25 product mix LCV goods 35%, trucks 50%, buses 15% Q2FY26 Results: Company reported healthy operational performance in Q2'26. Standalone revenues for Q2FY26 came in at 9,588 crore, up 9.3% YoY amidst 8% growth in volumes to 49k units. EBITDA for the quarter came in at 1,162 crore with margins at 12.1%, up 100 bps QoQ. Consequent PAT in Q2FY26 came in at ...

We maintain our BUY rating on the stock.

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Ashok Leyland (AL)’s 2QFY26 PAT stood at INR8b. It was 8% ahead of our estimate, primarily driven by a higher-than-expected other income, even as EBITDA came in line.

We recommend a BUY on the stock with a TP of Rs 152 implying an upside of 10 from the CMP

AL is coming up with several new MHCV and LCV products in H2FY26. These include heavy -duty tippers, tractor trailers and multi-axle vehicles with industry-best peak power and torque and other premium features. The company is also foraying into the LNG segment and a bi-fuel LCV product this FY. The new Andhra Pradesh plant is ramping to 200 units/ month by year-end. The company is targeting production of 1650 units/month from the current rate of 950/month. Management is confident in the H2 uptrend, driven by new...

Management retained its guidance of mid-single digit MHCV volume growth and slightly higher growth in the LCV segment for FY26E, led by a stronger 2HFY26E driven by replacement demand, higher government capex, easing steel costs, and new product launches across MHCV, LCV, and alternate fuel platforms.

We maintain our BUY rating on the stock.

Ashok Leyland’s (AL) 1Q PAT stood at INR5.9b, marginally ahead of our estimate of INR5.8b, led by a slight beat on margins (30bp) and higher other income.

Q1FY26 revenue grew ~2% YoY to Rs 87.2bn in a challenging quarter, aided by volume gains of 1% YoY; realisations stay put

Q4FY25 revenue grew 6%/26% YoY/QoQ to Rs 119.1bn, aided by volume gains of 4%/27% YoY/QoQ, while realisations stay put

Ashok Leyland's reported strong Q3FY25 performance with revenue growth being 3% better than PLe/consensus estimates. During Q3FY25, its volume decline by 1.4% YoY, however, realization increased by 3.7% YoY with the main cause being discipline on discounts, better mix of M&HCV products and healthy spares revenue. EBITDA margin was better than PLe/consensus expectations (12.1%/11.9%) at 12.8%, aided by cost mitigating measures to drive overall profitability. Sharp decline in other income was offset by decline in interest...