Ashok Leyland Sees Overseas Growth Potential Amid West Asian Supply Chain Risks

Ashok Leyland Posts Double-Digit Earnings Growth, Expands Overseas

New Delhi: Ashok Leyland, India's third-largest commercial vehicle maker, reported a 10% year-on-year rise in net profit to ₹3,721 crore and a 16% increase in revenue to ₹56,362 crore for the fiscal year 2026. The company's performance was driven by strong volumes, with truck and bus sales rising 12% to 126,745 units, while light commercial vehicle volumes increased 18% to 74,448 units.

The company's quarterly performance was also impressive, with net profit rising 11% to ₹1,381 crore in the war-hit January-March quarter (Q4FY26) and revenue increasing 17% to ₹14,695 crore. Ashok Leyland's operational discipline and cost-cutting measures have been instrumental in sustaining growth, according to top company executives.

Supply Chain Resilience and Cost Management

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Managing costs and supply-chain resilience has become central to Ashok Leyland's approach after the pandemic-led disruption. The company has set up cross-functional operational teams to improve coordination and reduce supply-chain disruptions. Chief financial officer KM Balaji said cost measures are being driven through value engineering, e-sourcing, and commercial negotiations. The company has also elevated Balaji to the board of directors for a period of two years.

International Expansion

Ashok Leyland is accelerating its overseas push, including into Indonesia and other Asean markets, betting on operational discipline to sustain growth. The company has set up a wholly owned subsidiary in Indonesia, where Tata Motors and Mahindra and Mahindra Ltd had secured orders for more than 105,000 LCVs earlier this year. Ashok Leyland's international sales rose 19% to 18,082 units, although disruption at its United Arab Emirates facility pulled down volumes in Q4 by 3% to 5,322 units.

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Battery Technology Partnership

Ashok Leyland is also accelerating development of battery technology through a partnership with Chinese battery firm CALB. A battery pack plant is being set up near Chennai under the partnership and is expected to begin operations in the first half of next financial year. Chairman Dheeraj Hinduja said the company has put a strong battery team together and is planning for the future as well.

Despite the West Asia conflict weighing on demand, Hinduja struck an optimistic tone on FY27 growth prospects. Ashok Leyland is well-positioned to sustain growth and expand its overseas presence in the coming year.