Ashok Leyland Hits Record Output as Forecast Maps a Bumpier Road to 2031

Ashok Leyland closed its 2025/26 financial year with the strongest numbers in its corporate history, delivering 220,437 trucks, buses and light commercial vehicles. Consolidated revenue climbed 14% to INR 515bn (US$5.4bn), the fourth straight year of growth, with all three pillars of the business — commercial vehicles, electric mobility and vehicle financing — contributing to the uptick.

The CV arm carried most of that weight. Revenue there advanced 13.6% to INR 443bn, helped by healthy domestic demand and a record export year, while operating profit rose 19.5% to INR 53.3bn and the margin widened 0.6 points to 12.0%. Management credited better unit pricing and a reworked procurement setup for absorbing steep increases in steel, aluminium, copper and rubber costs.

The sales mix has shifted noticeably since the last cyclical high in 2018/19. Medium and heavy commercial vehicles accounted for 72.4% of volume back then; by 2025/26 that share had eased to 64.7% as LCVs grew to 35.3%. Within the heavy truck business the swing is even sharper — a 2016 split of 70% standard and 30% heavy has flipped to roughly 20% standard and 80% heavy, a change tied to higher legal axle-load limits, fast highway expansion and the modular AVTR platform.

The near-term picture looks less straightforward. Forecasters expect the market to cool through late 2026/27, pointing to softer freight spot rates, thinner operator margins, weaker dispatches from industrial hubs and costlier fuel. India’s central bank is also widely expected to tighten rates at its October meeting. Buses are the exception, underpinned by state electrification tenders and fleet replacement programmes.