Ashok Leyland bets on overseas growth as West Asia risks weigh on supply chains
New Delhi: Ashok Leyland is tightening costs, strengthening supply chains and stepping up its overseas operations, including Indonesia and other Asian countries (Association of Southeast Asian Nations) After a year of double-digit earnings growth, operational discipline is being relied upon to sustain growth, according to senior company executives.
The country’s third-largest commercial vehicle maker reports 10% year-on-year increase in net profit ₹3,721 crore and 16% increase in revenue ₹56,362 crore for FY26. Net profit up 11% in war-hit January-March quarter (QFY26) ₹Revenue increased by 17% to 1,381 crore ₹14,695 crore.
Volumes supported performance. Truck and bus sales increased by 12% to 126,745 units, and light commercial vehicle sales increased by 18% to 74,448 units. In FY26.
supply edge
According to Ashok Leyland chairman Dheeraj Hinduja in a post-results interaction, managing costs and supply chain flexibility have become central to the company’s approach in the wake of the disruption caused by the pandemic. Mint.
“Post-Covid, we realized that we need to have a supply chain that can support us no matter what, in terms of different scenarios that we may face. So from that perspective, I think we have learned good lessons from the past,” Hinduja said. “However, I can say that we are also taking cost measures as necessary. When it comes to capital expenditures, we look at it without affecting the long-term growth prospects of the company when it comes to new models.”
Finance chief KM Balaji said cost measures were driven through value engineering, e-sourcing and commercial negotiations.
“It even involves looking at the component design, weight, and the materials used in that way,” Balaji explained. He was also promoted to board member for two years.
The company also established cross-functional operational teams to improve coordination and reduce supply chain disruptions.
Executives said these measures and higher volumes together supported growth.
Peer Tata Motors Ltd reported a 5% decline in consolidated net profit in FY26. ₹3,030 crore. except one ₹1,428 crore loss on investments linked to equity stake in Tata Capital, profit up 9% ₹4,458 crore. Revenue increased by 44% ₹83,855 crore, with a 14% increase in domestic and international volumes to 428,000 units.
Ashok Leyland’s international sales rose 19% to 18,082 units, but disruptions at its United Arab Emirates facility sent volumes down 3% to 5,322 units in Q4.
Hinduja struck an optimistic tone on FY27 growth prospects even as conflicts in West Asia weigh on demand. Ashok Leyland established a wholly owned subsidiary in Indonesia to support its overseas expansion; here Tata Motors, Mahindra and Mahindra Ltd received orders for more than 105,000 light commercial vehicles earlier this year.
“This is one of the biggest markets and we are making a start there by exploring different product options. As we said Bahrain, Middle East (West Asia), Africa, Saarc and Asean are our next big hub that we are also trying to get into. So we are already present in the Philippines, we are already present in Malaysia and now we are starting the Indonesian market as well,” said Hinduja.
The company is also accelerating the development of battery technology by partnering with Chinese battery company CALB. Under the partnership, a battery pack plant is being set up near Chennai and is expected to become operational in the first half of the next financial year.
“We have now built a very strong battery team. They are not only working on the existing facility we have established for the battery pack, but are also planning for the future,” said Hinduja.
