Ashok Leyland · Research view

Ashok Leyland Ltd.

NSE: ASHOKLEYBSE: 500477ISIN INE208A01029Face value ₹1standalone

₹151

−2.20% · 2026-10-01 · 52-wk ₹135–₹212

Financials to FY2026 · 7 years of history · prices to 2026-10-01consolidated standalone

Section 02 · Synthesis

What stands out?

The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.

StrengthConcernWatchContext

WatchTalking point

Profit and cash flow diverged

Reported profit rose 10.0% but operating cash flow fell 3910.0% — worth investigating whether the profit is being collected.

Importance 69 / 95 · cash quality

WatchTalking point

Growing, but light on cash

Revenue grew 16.1% but only -1.32× of reported profit came through as operating cash.

Importance 62 / 95 · cash quality

WatchTalking point

Profit lagging revenue

Revenue grew 16.1% but profit grew 10.0%, so the company kept less of each rupee of revenue as profit.

Importance 62 / 95 · growth

ConcernTalking point

Weak cash conversion

Operating cash flow was only -1.32× reported profit (FY2026).

Importance 61 / 95 · cash quality

Section 03 · The company

Who is this company?

Classified by the exchange under Industrials › Capital Goods › Agricultural, Commercial & Construction Vehicles › Commercial Vehicles.

Market cap: ₹88,667 cr
FY2026 revenue: ₹44,007 cr
FY2026 net profit: ₹3,566 cr
Net worth: ₹13,113 cr
Total debt: ₹1,195 cr
EPS (basic): ₹6.07
Listed: NSE · BSE
Reporting: Ind-ASApr–Mar

Peer set used on this page: 2 commercial vehicles.

Section 04 · Business performance

Is the business growing?

Revenue & net profit — FY20 to FY26₹ crore · consolidated

RevenueNet profit

Watch

Revenue grew 16.1% but profit grew 10.0%, so the company kept less of each rupee of revenue as profit.

Rule PROFIT_SLOWER_THAN_REVENUE

Revenue growth per year: +16.6%over 6 years
Revenue growth: +13.6%vs last year
Net profit growth: +7.9%vs last year
Change in net profit since FY20: +1389%

Profit has swung sharply over 5 years (from ₹-285 to ₹3,721) — one year is a weak guide to the earnings power.

Revenue compounded at 17.0% a year over 6 years (₹21,951 → ₹56,362) — though FY2023 saw a one-off step-change of 59% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.

Revenue grew 16.1% year on year (FY2025 → FY2026).

Section 05 · Recent activity

What changed recently?

Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.

Strength

Q1 FY27 revenue was ₹13,070 cr, up 11.6% from ₹11,709 cr in Q1 FY26 a year earlier.

Rule QTR_REVENUE_GROWTH_YOY

Strength

Q1 FY27 EBIT was ₹2,284 cr, up 14.3% from ₹1,999 cr a year earlier.

Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY

Watch

Q1 FY27 net profit was ₹668 cr, down 51.7% from ₹1,381 cr in the previous quarter (Q4 FY26).

Rule QTR_PROFIT_SEQUENTIAL_CHANGE

A. Quarterly results

Latest quarters — Q2 '25 to Q1 '27₹ crore · consolidated

RevenueNet profit

Quarter	Revenue	YoY	Net profit	YoY	Net margin
Q2 FY25	11,148	—	767	—	6.9%
Q3 FY25	11,995	+8.1%	820	+34.6%	6.8%
Q4 FY25	14,696	+8.2%	1,246	+33.4%	8.5%
Q1 FY26	11,709	+9.2%	658	+19.4%	5.6%
Q2 FY26	12,577	+12.8%	820	+6.9%	6.5%
Q3 FY26	14,830	+23.6%	862	+5.2%	5.8%
Q4 FY26	17,246	+17.4%	1,381	+10.9%	8.0%
Q1 FY27	13,070	+11.6%	668	+1.5%	5.1%

B. TTM snapshot

Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters

Revenue: ₹57,723 crTTM
EBITDA: ₹11,657 crTTM
EBIT: ₹10,478 crTTM
PBT: ₹5,160 crTTM
Net profit: ₹3,731 crTTM

C. Corporate actions

3 Jun 2026DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share

18 Nov 2025DividendInterim Dividend - Rs. - 1.0000 — ₹1.00/share

16 Jul 2025Bonus issueBonus issue 1:1 — 1:2

22 May 2025DividendInterim Dividend - Rs. - 4.2500 — ₹4.25/share

19 Nov 2024DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share

3 Apr 2024DividendInterim Dividend - Rs. - 4.9500 — ₹4.95/share

7 Jul 2023DividendFinal Dividend - Rs. - 2.6000 — ₹2.60/share

14 Jul 2022DividendDividend - Rs. - 1.0000 — ₹1.00/share

31 Aug 2021DividendFinal Dividend - Rs. - 0.6000 — ₹0.60/share

19 Mar 2020DividendInterim Dividend - Rs. - 0.5000 — ₹0.50/share

23 Jul 2019DividendDividend - Rs. - 3.1000 — ₹3.10/share

9 Jul 2018DividendDividend - Rs. - 2.4300 — ₹2.43/share

11 Jul 2017DividendDividend - Rs. - 1.5600 — ₹1.56/share

13 Jul 2016DividendDividend - Rs. - 0.9500 — ₹0.95/share

17 Jun 2015DividendDividend - Rs. - 0.4500 — ₹0.45/share

4 Jul 2013DividendDividend - Rs. - 0.6000 — ₹0.60/share

12 Jul 2012DividendDividend - Rs. - 1.0000 — ₹1.00/share

2 Aug 2011Bonus issueBonus issue 1:1 — 1:2

29 Jun 2011DividendDividend - Rs. - 2.0000 — ₹2.00/share

16 Jul 2010DividendDividend - Rs. - 1.5000 — ₹1.50/share

14 Jul 2009DividendDividend - Rs. - 1.0000 — ₹1.00/share

16 Jul 2008DividendDividend - Rs. - 1.5000 — ₹1.50/share

28 Jun 2004DividendDividend - Rs. - 7.5000 — ₹7.50/share

28 Jun 2004Otherother

18 Jun 2001DividendDividend - Rs. - 4.0000 — ₹4.00/share

Section 06 · Business performance

Is it becoming more profitable?

Margins — FY20 to FY26% of revenue · consolidated

EBITDA marginNet margin

Concern

ROE declined from 24.5% to 21.6% year on year.

Rule ROE_DETERIORATED_YOY

EBITDA margin now: 13.7%
7-year range: 4.3–13.7%
ROE FY2026: 29.0%
ROCE FY2026: 39.1%

Section 07 · Financial health

Is financial health improving?

Net worth — FY20 to FY26₹ crore · consolidated

Net worth (shareholders' funds)

Watch

Reported profit rose 10.0% but operating cash flow fell 3910.0% — worth investigating whether the profit is being collected.

Rule PROFIT_UP_CASH_DOWN

Operating cash flow vs net profit₹ crore · FY21–FY26

Operating cash flowNet profit

Total debt: ₹1,195 cr
Operating cash flow ÷ net profit: 1.34×FY2026
Free cash flow: ₹3,814 cr
Current ratio: 1.10×

Revenue grew 16.1% but only -1.32× of reported profit came through as operating cash.

Operating cash flow was only -1.32× reported profit (FY2026).

Net worth compounded at 13.0% a year over 6 years (₹8,896 → ₹18,546).

Debt-to-equity rose from 3.15× to 3.45× year on year.

Net debt is 4.14× EBITDA.

Operating profit covers interest only 2.17× (FY2026).

Section 08 · Relative position

How does it compare with peers?

Ranked against 2 commercial vehicles (FY2026, consolidated).

Not enough peers in this set report the underlying metrics yet for a ranking.

Context

Trades at 4.78× book — 43% below the commercial vehicles median of 8.39×.

Rule PB_BELOW_PEERS

P / E: 23.8×TTM to Jun 26
P / B: 4.8×latest book
P / S: 1.5×TTM sales
Earnings yield: 4.2%TTM to Jun 26

On the trailing twelve months. Last full year: P/E 23.8× · P/S 1.6× · ROE 21.6%.

Section 09 · The stock

How has the stock performed?

Adjusted close — 2020-01 to 2026-10₹ per share · split / bonus adjusted

Context

Over 5 years profit compounded at 51.9% a year while the stock returned 18.2% a year — but FY2021 profit (₹460) was well below the through-cycle level (~₹2,029), so this rate is inflated by the recovery from a low base.

Rule STOCK_LAGGED_EARNINGS · recovery

Business vs stock — 5-year compound annual rate

1-year return: +6.9%
3-year return: +70.6%
5-year return: +130.9%
From 52-wk high: −28.8%

Section 10 · Technical data

What does the technical data say?

Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.

vs 50-day avg: Below₹167
vs 200-day avg: Below₹171
RSI (14): 30.9neutral
MACD histogram: -1.0
From 52-wk high: −28.8%
From 52-wk low: +12.2%
30-day volatility: 24.1%ann.
6-month return: −2.1%

RSI (14) · 0–10030.9 — neutral

Section 11 · Open questions

What should I investigate further?

Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.

Watch
Profit and cash flow diverged
Reported profit rose 10.0% but operating cash flow fell 3910.0% — worth investigating whether the profit is being collected.
PROFIT_UP_CASH_DOWN · conviction 69
Watch
Growing, but light on cash
Revenue grew 16.1% but only -1.32× of reported profit came through as operating cash.
GROWTH_WITH_WEAK_CASH · conviction 62
Watch
Profit lagging revenue
Revenue grew 16.1% but profit grew 10.0%, so the company kept less of each rupee of revenue as profit.
PROFIT_SLOWER_THAN_REVENUE · conviction 62
Concern
Weak cash conversion
Operating cash flow was only -1.32× reported profit (FY2026).
WEAK_CASH_CONVERSION · conviction 61
Watch
Volatile earnings
Profit has swung sharply over 5 years (from ₹-285 to ₹3,721) — one year is a weak guide to the earnings power.
EARNINGS_VOLATILE · conviction 59
Concern
Leverage rising
Debt-to-equity rose from 3.15× to 3.45× year on year.
LEVERAGE_INCREASED_YOY · conviction 44
Concern
Meaningful debt load
Net debt is 4.14× EBITDA.
HIGH_LEVERAGE · conviction 43
Concern
Thin interest cover
Operating profit covers interest only 2.17× (FY2026).
INTEREST_COVER_LOW · conviction 42
Concern
Returns declining
ROE declined from 24.5% to 21.6% year on year.
ROE_DETERIORATED_YOY · conviction 42

Cash-flow-statement facts are unavailable for FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.

Section 12 · Reference

The numbers

The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.

Income & balance sheet — ₹ crore, consolidated
Metric	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Revenue	17,467	15,301	21,688	36,144	38,367	38,753	44,007
Total income	17,591	15,421	21,764	36,260	38,614	39,003	44,322
EBITDA	1,297	655	1,071	3,047	4,853	5,181	6,047
Profit before tax	362	−412	528	2,110	3,792	4,348	4,814
Net profit	240	−314	542	1,380	2,618	3,303	3,566
EPS (₹)	0.8	−1.1	1.9	4.7	8.9	11.3	6.1
Net worth	7,264	6,977	7,337	8,426	8,810	11,519	13,113
Total debt	3,092	3,716	3,554	3,225	2,299	1,482	1,195
Operating cash flow	—	21	2,647	2,136	2,503	7,819	4,792
Free cash flow	—	−635	2,254	1,648	2,022	6,895	3,814

Key ratios — consolidated
Ratio	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Growth
Revenue growth YoY	—	-12.4	41.7	66.7	6.2	1.0	13.6
Profit growth YoY	—	-231.0	—	154.7	89.7	26.2	7.9
Profitability
EBITDA margin %	7.4	4.3	4.9	8.4	12.6	13.4	13.7
Net margin %	1.4	-2.0	2.5	3.8	6.8	8.5	8.0
Return on equity %	3.3	-4.4	7.6	17.5	30.4	32.5	29.0
Return on capital %	6.1	-0.9	2.9	20.5	36.3	37.0	39.1
Leverage & cash
Debt to equity	0.43	0.53	0.48	0.38	0.26	0.13	0.09
Cash flow ÷ profit	—	—	4.89	1.55	0.96	2.37	1.34
Current ratio	0.77	0.90	0.99	1.05	0.96	1.08	1.10