Total expenses for the period under review added up to Rs 8,889.27 crore, up 11.4% YoY. This was primarily due to higher raw material costs (up 8.4% YoY), higher employee expenses (up 13.2% YoY) and higher other expenses (up 10.2% YoY).

Profit before tax in Q1 FY27 stood at Rs 830.18 crore, up by 4.1% from Rs 797.73 crore in Q1 FY26.

The company has recorded commercial vehicles volume of 48,763 units for Q1 FY27 vis-a-vis 44,238 units in the same period last year, up 10.2% YoY.

Ashok Leyland's medium & heavy commercial vehicles (MHCV) truck volumes (excluding defence) grew 15% while light commercial vehicle (LCV) domestic Q1 volumes grew by 21%. The exports volume in Q1 was at 2,461 units. The power solutions, aftermarket and defence businesses also contributed strongly to the financial performance.

The company strengthened its cash position with net cash of Rs 2,252 crore at the end of Q1 FY27, a positive swing of Rs 1,432 crore on YoY basis.

Dheeraj Hinduja, chairman, Ashok Leyland, said: 'Ashok Leyland has delivered another strong quarter, underpinned by disciplined execution and effective cost management.

Demand across key segments remains robust, and future prospects continue to be encouraging. We believe government initiatives such as Parivartan will further accelerate fleet modernization and support the long-term growth of the commercial vehicle industry.

Our electric mobility subsidiary, Switch Mobility, continues to gain traction. We are strengthening our presence in international markets and the Defence business to diversify our growth drivers.

With a strong product portfolio, and a customer-centric approach, we remain well positioned to create sustainable long-term value for all our stakeholders.'

Ashok Leyland is involved in the manufacture and sale of a broad range of commercial vehicles and also makes engines for industrial and marine applications, as well as forgings and castings.

The scrip fell 1.89% to currently trade at Rs 177 on the BSE.