Ashok Leyland Ltd. is expecting better growth in the second half of the financial year 2026 compared to the first half, said Managing Director and CEO Shenu Agarwal.
In the second half of the financial year 2026, other than the GST 2.0's impact, there would be additional factors like increased activity in the infrastructure sector, more government capex setting the ground to support growth, Agarwal said in an interview to NDTV Profit.
Ashok Leyland has forecasted a mid-single digit growth for the medium to heavy commercial vehicles, and slightly more than MSD growth for the light commercial vehicles. The truck manufacturer is confident to beat these growth rate for the financial year 2026, he said.
Ashok Leyland is optimistic because the sentiment on the ground is positive other than growth numbers. People are looking at the retail segment in two different ways, he said.
Consumption boost is happening in the country at this moment because of GST 2.0. It is not about the price cuts on the trucks and buses, but it is the expectation that freight demand will increase, he said.
Freight demand increasing is a big incentive for freight owners to invest in new products. The current products are much better than what was built five years ago in terms of mileage, in terms of reliability and turn-around times, Agarwal said.
Ashok Leyland Q2 Earnings Key Highlights
Net Profit at Rs 771 crore versus NDTV Profit estimate of Rs 723 crore
Revenue at Rs 9,588 crore versus NDTV Profit estimate of Rs 9,564 crore
Ebitda at Rs 1,162 crore versus NDTV Profit estimate of Rs 1,128 crore
Margin at 12.1% versus NDTV Profit estimate of 11.8%
To pay interim dividend of Rs 1 per share
Ashok Leyland has a huge focus on exports because the company thinks that exports give not only the status of being a global company but also better margins. The truck manufacturer has done the right things to establish the home markets outside India. In the last 20 years, Ashok Leyland went to targeted markets and built a great local presence, he said.
Two or three years ago, Ashok Leyland's export numbers were 8,000. Last year, it was more 15,000. The truck manufacturer has doubled its exports. The target is to hit 25,000 exports volume, he said.
In the first half, Ashok Leyland achieved 35% or more in exports. The company hopes, with the right resources at their disposal, they will continue to deliver strong growth in exports, he said.
Catch More Management Interactions At NDTV Profit
RECOMMENDED FOR YOU
Asian Paints, Ashok Leyland, Thermax, Balaji Amines, Kirloskar Oil, Gujarat Gas, Kolte-Patil & More Q2 Review
Ashok Leyland Q2 Review: Margins Impress, But Valuations Leave Little Room For Upside, Says Jefferies
Asian Paints, Ashok Leyland, HAL, Tata Steel Q2 Results Today — Earnings Estimates
Five Stocks To Buy: Ashok Leyland, Bharti Airtel, Varroc Engineering And Two Others
POPULAR