Key Highlights

• Net profit at Rs 796 crore in Q3 FY26, up around 4 to 4.5 percent year on year

• Revenue from operations rose 22 percent to Rs 11,534 crore

• EBITDA increased 27 percent to Rs 1,535 crore

• Operating margin improved to 13.3 percent

• MHCV volumes up 23 percent to 32,929 units

• LCV volumes up 30 percent to 20,518 units

• One time Labour Code charge of Rs 308 crore impacted reported profit

• Company clarified there is no confirmed linkage between EV fundraising reports and share price movement

Record Profit Despite One Time Regulatory Charge

Ashok Leyland reported a net profit of Rs 796 crore for the quarter ended December 31, 2025. This marks its highest ever third quarter profit. The figure reflects a modest year on year growth of about 4 to 4.5 percent compared to Rs 762 crore in Q3 FY25.

However, the reported number includes a one time charge of Rs 308 crore related to the implementation of the new Labour Code. Without this charge, profit growth would have been significantly higher.

This means the core business performed better than what the headline profit number suggests. For investors, it is important to separate regular operating performance from one time costs to understand the real trend.

Strong Revenue Growth Drives Operating Leverage

Revenue from operations rose 22 percent year on year to Rs 11,534 crore. The growth was supported by healthy demand across vehicle categories and better pricing.

The strong top line translated into higher operating profit. EBITDA rose 27 percent to Rs 1,535 crore. Operating margins improved to 13.3 percent, reflecting :

• Better product mix

• Pricing discipline

• Scale benefits from higher volumes

• Improved cost control

Margin expansion in a high volume quarter shows that the company is managing costs well while benefiting from strong demand.

Broad Based Volume Growth Across Segments

Volume growth was strong in both major vehicle categories.

Medium and Heavy Commercial Vehicles

MHCV volumes increased 23 percent to 32,929 units. Demand remained healthy in sectors such as infrastructure, mining, and freight transportation.

Light Commercial Vehicles

LCV volumes grew even faster at 30 percent to 20,518 units. Growth in this segment reflects strong demand from last mile delivery and city logistics.

Growth across both heavy and light vehicles suggests that demand is not limited to one segment. In a cyclical industry like commercial vehicles, such broad based expansion often signals improving economic activity.

EV Fundraising Reports Draw Clarification

The company also responded to market speculation regarding a possible 200 million dollar fundraising for its electric mobility arm, OHM Global Mobility.

On February 11, 2026, stock exchanges sought clarification after media reports suggested that advisers were being engaged to raise capital from global private equity firms. Reports also indicated a possible valuation of 800 million to 1 billion dollars for the EV business.

In its official communication dated February 12, 2026, Ashok Leyland stated that it does not comment on market rumours. It also clarified that there was no confirmed connection between such reports and recent intraday share price movements.

Expansion Plans for Electric Mobility

While the company denied confirming any specific fundraising, management has shared its broader strategy.

CEO Shenu Agarwal said that the company is exploring external sources of funding for OHM Global Mobility. The EV arm plans to scale its electric bus fleet to more than 2,500 units over the next 12 months.

Raising external capital for the EV business would allow the company to expand in electric mobility without putting pressure on the core balance sheet. This approach supports growth in new technologies while keeping the main commercial vehicle business financially strong.

What This Quarter Signals

Q3 FY26 reflects two important themes :

1. Strong cyclical recovery in the core commercial vehicle business

2. Long term strategic positioning in electric mobility

The record quarterly profit, margin expansion, and strong volume growth show solid execution in a favorable demand environment. At the same time, the EV expansion plan signals that the company is preparing for the next phase of industry transformation.

The next few quarters will be important to track whether demand momentum continues and how the electric mobility roadmap progresses in terms of funding and execution.