Ashok Leyland Ltd. share price target

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.

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

Q3FY25 revenue grew 2%/8% YoY/QoQ to Rs 94.76bn, helped by realisation gains of 4%/6% YoY/QoQ while volume was listless

Surpassing our Rs11.3bn estimate on more-than-expected revenue and less-than-anticipated other expenses, Ashok Leyland’s Q3 EBITDA grew 9% y/y to Rs12.1bn.

We maintain our BUY rating on the stock.

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...

We reiterate our BUY rating on Ashok Leyland (ALL) on (1) its focus on profitability over plain vanilla volume growth strategy, (2) sustaining EBITDA margin over the 10% mark, (3) passing on cost inflation to customers to save profitability

We upgrade our rating from HOLD to BUY on the stock from a long term perspective