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Ashok Leyland Posts Solid Q2, Management Guides To Stronger H2

Management cites GST 2.0-driven freight demand as the catalyst for a stronger second half.

Overview

  • The company reported Q2 revenue of Rs 9,588 crore, EBITDA of Rs 1,162 crore with a 12.1% margin, and net profit of Rs 771 crore.
  • Shares rose as much as 5.5% intraday, while broker views split with Jefferies maintaining Hold at a Rs 135 target and several domestic firms reiterating Buy.
  • Management expects a better H2 FY26 and projects mid-single-digit MHCV growth with ongoing strength in buses, LCVs and exports.
  • Switch Mobility India turned PAT-profitable in H1 FY26 and is targeting positive free cash flow by FY27.
  • Operating cash flow was negative by about Rs 1,400 crore in H1 due to working-capital needs, yet the company ended Q2 with roughly Rs 1,000 crore in net cash.