Ashok Leyland sees FY27 CV growth on infra, replacement demand

The company sees the India-EU trade agreement and a potential pact with the US as opening doors for exporters, and said it is positioned to benefit from both. On the risk side, it flagged demand volatility tied to macro conditions, abnormal fuel price increases, interest rates and freight availability, as well as commodity and foreign-exchange swings and supply-chain disruptions.

"We seek to mitigate these through diversified business levers (aftermarket, exports, defence and power solutions), a strong new product pipeline, proactive cost and working capital actions, and a continued emphasis on customer experience through stronger uptime and service reach," the report said.

Material costs rose 14% to ₹31,417 crore in FY26 from ₹27,623 crore a year earlier, though as a share of sales revenue they remained broadly stable year-on-year. Hinduja said the structural demand drivers for commercial vehicles in India remain intact, with infrastructure investment continuing at scale, logistics networks formalising, and a shift toward higher-payload configurations that play to the company's premium product and solutions portfolio.