Ashok Leyland Shares Rise 2% Post Q1 Results. What Citi and Nomura Suggest

Ashok Leyland’s demand is on the right track, but margins lag

Demand is holding up and several growth engines are gaining traction, but a sharp margin squeeze and falling M&HCV market share leave investors waiting for a broader recovery.

Ashok Leyland shares rise 2% post Q1 results. What Citi and Nomura suggest

Ashok Leyland shares rose 2.15% after the commercial vehicle maker reported a 2% YoY increase in consolidated net profit to Rs 668 crore in Q1. Revenue rose 10% to Rs 10,750 crore, while standalone net profit hit a record Rs 609 crore. However, EBITDA margin narrowed to 10.1% from 11.1% due to rising material costs during the quarter.