Ashok Leyland shares surged over 5% on Thursday, November 13, after the company posted a healthy second-quarter performance backed by stronger profitability, steady demand and improved operating margins. The stock hit an intraday high of ₹151.46 and was trading 5.40% higher at ₹150.22 by midday.

The Hinduja Group company reported a consolidated net profit of ₹755.77 crore in Q2FY26, a 7.1% rise from ₹705.64 crore last year, and a sharp 23.66% sequential jump over Q1. Revenue from operations grew 9.4% year-on-year to ₹10,543.97 crore, supported by resilient demand across commercial vehicle segments.

Operational performance remained strong, with EBITDA climbing to ₹1,162 crore and margin improving to 12.1%, compared with ₹1,017 crore in the same quarter last year. Management attributed the improvement to product premiumisation, cost optimisation, network expansion and stronger international traction.

The company also declared an interim dividend of ₹1 per share, to be paid on or before December 11, 2025.

Vehicle sales for the quarter showed steady growth:

  • Domestic MHCV sales up 3% YoY to 26,307 units

  • Domestic LCV volumes up 6% YoY to 17,697 units

  • Exports jumped 45% YoY to 4,784 units

Brokerage recommendations: Buy, sell or hold Ashok Leyland?

Nomura on Ashok Leyland

Rating: Buy
Target Price: ₹174 per share

Nomura expects a “smooth ride ahead” for Ashok Leyland, highlighting stronger upcycle potential. The brokerage said Q2 was slightly ahead of estimates and sees margins expanding to mid-teens over the next two years.

Morgan Stanley on Ashok Leyland

Rating: Overweight
Target Price: ₹160 per share

Morgan Stanley termed Q2 performance broadly in-line, while noting a strong margin profile due to rising non-truck revenues. Management commentary indicating stronger H2 growth versus H1 supports its positive outlook.

HSBC on Ashok Leyland

Rating: Hold
Target Price: ₹145 per share

HSBC expects the domestic CV industry to grow 5–6% CAGR between FY25–FY28, with Ashok Leyland pacing the industry. However, it believes valuation is not undemanding, and says the GST cut is less positive for AL due to its product and customer mix.

Disclaimer

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