India's Ashok Leyland misses quarterly profit view as higher costs hurt

Ashok Leyland

11/02/2026 08:41

Feb 11 (Reuters) - Indian automaker Ashok Leyland ASOK.NS reported a smaller-than-expected rise in quarterly profit on Wednesday, as higher raw material costs outweighed the sales boost from a tax cut.

The company's profit rose 4.5% to 7.96 billion rupees  ($87.8 million) in the October-December period, missing analysts' estimate of 9.42 billion rupees, as per data compiled by LSEG.

Shares fell 2.4% after the results.

Quarterly expenses rose 20.1%, led by a 19.2% uptick in raw material costs.

Ashok Leyland joined peers Eicher Motors EICH.NS, Maruti Suzuki India MRTI.NS and Hyundai Motor India HYUN.NS in reporting higher raw material costs as prices of precious metals as well as non-ferrous metals firmed up.

The truck maker's overall sales grew 24% in the quarter, helped by India lowering taxes on commercial vehicles to 18% from 28% in late September. Lower prices helped fleet operators replace older vehicles, analysts said.

Revenue grew 21.7% to 115.34 billion rupees, above Street expectations of 112.76 billion rupees.

($1 = 90.6520 Indian rupees)

 (Reporting by Nandan Mandayam and Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))