India’s Ashok Leyland posts flat quarterly profit as costs weigh

Ashok Leyland

12/11/2025 09:49

Nov 12 (Reuters) - India’s Ashok Leyland ASOK.NS reported a flat second-quarter profit on Wednesday, as higher costs weighed on the automobile maker.

Standalone profit for the Hinduja Group’s flagship company came in at 7.71 billion rupees ($87.72 million) in the three months ended September 30, little changed from 7.7 billion rupees a year ago.

Revenue from operations rose 9.3% to 95.88 billion rupees, in-line with analysts’ average estimate of 95.87 billion rupees, per data compiled by LSEG.

"We are anticipating to witness better growth in the second half," CEO Shenu Agarwal said in a press release.

KEY CONTEXT

A spike in Ashok Leyland's cost of materials and services pushed up its overall expenses by 8% in the quarter.

Its bottom line was also pressured by a one-off litigation-related expense of 490 million rupees, versus a gain of 1.17 billion rupees a year earlier from the fair valuation of an investment in a unit.

Auto industry data showed India’s commercial-vehicle sales rose 8.3% year-on-year in the September quarter, with heavy-truck volumes up only 6.2%, underscoring an uneven recovery across vehicle categories.

Analysts had said Ashok Leyland likely felt the impact of a weaker product mix.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Ashok Leyland
ASOK.NS
19.66
21.90
6.93
9.44
Buy
27
1.01
2.21
Mahindra & Mahindra
MAHM.NS
28.18
24.58
14.82
18.13
Buy
31
0.90
0.69
Tata Motors Passenger Vehicles
TAMO.NS
7.24
3.03
3.52
-9.17
Hold
26
0.62
1.48
Eicher Motors
EICH.NS
33.49
30.83
16.52
15.02
Buy
28
1.08
-

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JUNE-SEPT STOCK PERFORMANCE

     -- All data from LSEG

($1 = 87.8950 Indian rupees)

TTEX https://tmsnrt.rs/3Xj5xVl

 (Reporting by Aleef Jahan in Bengaluru; Editing by Ronojoy Mazumdar)

 ((aleefjahan.cs@thomsonreuters.com))