Ashok Leyland Management Guidance Tracker

8 forward-looking guidance items tracked across 2 quarters.

Growth

Q1 FY26Mid-single-digit domestic M&HCV industry growth in FY26Tracked

Management expects mid-single-digit growth for M&HCV and slightly higher for LCV, with H2 likely stronger due to low base and improving macro.

Q3 FY26Industry growth to remain strong in FY27Tracked

Management expects the replacement cycle triggered by GST to sustain, with bulk buyers now joining retail buyers. FY27 should see good volume growth, though H1 may have a low base and H2 a high base.

Q3 FY26Switch India to be free cash flow positive by FY27Tracked

Switch India (EV subsidiary) is on track to achieve free cash flow positivity by FY27, with current order book of 1,350 units and positive EBITDA/PAT.

Revenue

Q1 FY26Double-digit revenue growth in defense for FY26Tracked

Strong order book (₹1,000+ crore) and tender pipeline (₹2,000+ crore) support double-digit defense revenue growth for the full year.

Margins

Q1 FY26Switch India EBITDA-positive in FY26Tracked

Switch India achieved PBT breakeven in Q1; management targets EBITDA-positive status for the full year.

Q3 FY26Price hikes of 60+ bps to offset commodity inflationActive

Management has started reducing discounts to recover ~60 bps of commodity cost impact, with further price increases possible if pressure persists.

Capex

Q1 FY26Fully-built bus capacity expansion to 1,650 units/monthTracked

Current capacity of 950 buses/month to be expanded to 1,650, including the new Lucknow plant operational from Q3 FY26.

Q3 FY26No major capacity capex in next 2-3 yearsTracked

Management sees no need for significant capacity expansion; only niche investments of ₹50-100 crore may be required.