The firm’s revenue from operations, meanwhile, grew more than 17% YoY to Rs 17,246 crore during the quarter under review, as against Rs 14,695 crore in the year-ago period. Total expenses increased over 18% YoY to Rs 15,493 crore, while total income rose over 17% YoY to Rs 17,417 crore during the fourth quarter of the financial year ended March 31, 2026.
Ashok Leyland shares: Buy, sell or hold?
Goldman Sachs maintained its “Neutral” rating on Ashok Leyland and marginally raised the target price to Rs 162 (1% upside) from Rs 161. It noted that recent diesel price hikes of up to 8% have temporarily delayed truck replacement demand, although management expects this deferred demand to return over time as pent-up demand. Goldman Sachs added that near-term demand is likely to be supported by mining, infrastructure tippers and tractor trailers, while the LCV and IMLCV segments may continue to lag industry growth. The company has also implemented 1-1.5% price hikes in April to offset commodity inflation, though management flagged the possibility of short-term margin pressure.Morgan Stanley maintained its “Equal-weight” rating on Ashok Leyland with a target price of Rs 180, a 12% upside. It said demand trends remain resilient, although commodity inflation and rising diesel prices remain key headwinds to monitor. Morgan Stanley noted that the company has increased prices by 1-1.5% to counter commodity inflation. It also highlighted that it remained cautious on margin pressures and elevated valuations despite the favourable long-term commercial vehicle industry outlook.
Motilal Oswal maintained its “Neutral” rating on Ashok Leyland and marginally raised the target price to Rs 162 from Rs 161. According to the brokerage, near-term demand is expected to be driven by mining, infrastructure tippers and tractor trailers, while the LCV and IMLCV segments could underperform the broader industry. The company has taken price hikes of 1-1.5% in April to offset commodity inflation, while management has also acknowledged the risk of short-term margin pressure. Motilal Oswal raised its FY27-29 EPS estimates by up to 1%.
Nomura maintained its “Neutral” rating on Ashok Leyland but cut the target price to Rs 169 from Rs 218, implying a potential upside of around 3%. The brokerage said recent macroeconomic challenges, including higher fuel prices, rising inflation and the possibility of higher interest rates, could weigh on India’s GDP growth, with medium and heavy commercial vehicles being particularly sensitive to an economic slowdown.
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It added that recent dealer surveys indicate signs of weakening enquiries, reinforcing its cautious stance on the commercial vehicle cycle. Nomura also expects exports to slow in FY27.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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