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Ashok Leyland's shares surged almost 7% to Rs. 130 on August 18 after the company conducted its quarterly Q1FY26 earnings, which were largely consistent with market expectations. Investors are closely monitoring the Ashok Leyland Share Price amid market fluctuations.
A stable operating performance, margin expansion, and a positive outlook on domestic and international businesses have combined to improve investor sentiment. Brokerages remain positive on the counter with an added upside of 15% from current levels.
Global brokerage UBS reiterated its “Buy” recommendation on Ashok Leyland, assigning a target price of Rs. 150. The firm highlighted that the company reported a margin beat, driven by strict operational discipline and improved cost controls.
Demand for Ashok Leyland Shares has risen as the company shows steady growth potential. UBS expects medium and heavy commercial vehicles (MHCVs) to record mid-single-digit growth, while the light commercial vehicle (LCV) segment could deliver slightly stronger momentum.
The Ashok Leyland Q1 Results revealed strong performance driven by higher sales. Domestic brokerage Choice Broking also maintained a “Buy” rating with a similar target of Rs. 150, noting that Ashok Leyland’s aggressive product pipeline positions it well for future demand.
To seize upcoming growth opportunities, Ashok Leyland is strengthening its portfolio across segments. The company plans to add higher horsepower MHCV 280-360 HP tippers, tractor trailers, and multi-axle vehicles, to meet demand from the mining, logistics, and construction markets.
Additionally, a new bi-fuel LCV model for large metro markets, and enhanced products for global customers. Analysts believe that these differentiated products will enhance pricing power and customer loyalty as well as provide Ashok Leyland with a competitive edge.
Analysts have revised the Ashok Leyland Brokerage Target following improved quarterly earnings. During the June quarter, Switch Mobility, the company's electric vehicle (EV) arm, also turned profit before tax (PBT) positive during the quarter, sending encouraging signals for EVs.
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For the June quarter, Ashok Leyland has declared a net profit of Rs. 594 crore, representing a 13% increase compared to Rs. 526 crore in the same quarter last year.
Revenue reported was Rs. 8,725 crore, compared to Rs. 8,599 crore a year ago, reflecting a 1.5% increase.
EBITDA reported was Rs. 970 crore, an increase of 6.6% from Rs. 911 crore a year ago.
EBITDA margins improved to 11% from 10.6% in Q1FY25, supported by conscious cost controls as well as favorable pricing and mix.
Analysts expect a positive recovery in demand prompted by the government's sustained infrastructure push, post-monsoon. With their strong and diverse product pipeline, rising EV momentum, and steady international performance, Ashok Leyland is anticipated to benefit from the cyclical recovery of the commercial vehicle market.
Market analysts believe the stock can see more upside towards the Rs. 150 range, with another 15% gain possible if execution continues to be consistent.
