Now Reading: Ashok Leyland Q1 net profit rises 2.6% to Rs 609 crore
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Ashok Leyland Q1 net profit rises 2.6% to Rs 609 crore
Ashok Leyland reported a 2.59% year-on-year rise in net profit to Rs 609 crore for Q1 FY27, with revenue from operations growing 10.4% to Rs 9,634 crore. The truck-maker sold a record…
The Story in Brief
Ashok Leyland reported a 2.59% year-on-year rise in net profit to Rs 609 crore for Q1 FY27, with revenue from operations growing 10.4% to Rs 9,634 crore. The truck-maker sold a record 48,763 commercial vehicles in the quarter, up from 44,238 a year ago.
However, rising material costs squeezed margins: EBITDA margin fell to 10.1% from 11.1% in Q1 FY26, with EBITDA at Rs 970 crore. The company strengthened its balance sheet, with net cash rising to Rs 2,252 crore, an improvement of Rs 1,432 crore year-on-year. It also introduced air suspension technology on multi-axle trucks and added 33 new touchpoints.
The Indian Opinion
The profit growth looks modest, but record volumes and a sharper focus on premium products show underlying demand remains robust. Yet the margin squeeze from material costs is real and cannot be brushed aside. The test for Ashok Leyland will be whether it can pass on these costs through better price realisation in the coming quarters without losing market share.
Source: livemint.com
This story was synthesised by AI from the source linked above.
