Motilal Oswal reiterates INR 198 target for Ashok Leyland stock

Published on 10/20/2026 at 02:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q1 FY27 revenue rose 10.43 percent to INR 96.34 billion on August 14, 2026. Ashok Leyland stock faced a 105 basis point margin squeeze.

Operating metrics and valuation

Motilal Oswal reiterated an INR 198 target on August 14, 2026.
Q1 FY27 revenue rose 10.43 percent while the operating margin fell to 10.10 percent.
Ashok Leyland carried an INR 867.7 billion market capitalization as of October 19, 2026.

Ashok Leyland, INE208A01029, Illustration mit AI erstellt.

Ashok Leyland (INE208A01029) reported Q1 FY27 revenue of INR 96.34 billion, up 10.43 percent year over year, on August 14, 2026. A Motilal Oswal note dated August 14, 2026 reiterated its INR 198 target, according to DSIJ.

Three results show the progression

On February 11, 2026, Ashok Leyland reported quarterly revenue of INR 11.53 billion and net profit of INR 796 crore, according to The Economic Times.

On May 28, 2026, fourth-quarter net profit reached INR 12.91 billion while revenue increased to INR 172.46 billion, according to The Economic Times.

On August 14, 2026, Q1 FY27 commercial-vehicle volume reached 48,763 units and consolidated profit rose to INR 6.68 billion, according to DSIJ.

What does the margin mean?

The operating margin fell to 10.10 percent in Q1 FY27 from 11.10 percent a year earlier, even as revenue advanced 10.43 percent. The contrast puts input costs at the center of the earnings picture: DSIJ said EBITDA was INR 9.70 billion and broadly flat year over year, while total vehicle volume increased 10.00 percent.

Motilal Oswal nevertheless kept its INR 198 target and Buy view in the report dated August 14, 2026. The broker based the target on 13 times estimated fiscal year 2028 EBITDA and expected revenue, EBITDA and adjusted profit to compound at 11.00 percent, 15.00 percent and 17.00 percent, respectively, through fiscal year 2028.

Next reporting date is November 6

The next earnings report is scheduled for November 6, 2026, according to TradingView. The date gives investors a defined point for testing whether commercial-vehicle growth can offset the margin pressure described in the June-quarter figures.

Stock valuation remains tied to execution

Ashok Leyland was last at INR 147.72 on the NSE on October 19, 2026 at 3:29 p.m. IST. The finance data showed an INR 867.7 billion market capitalization and a 52-week range of INR 135.56 to INR 215.42 on the same date. The NSE identifies the company as Ashok Leyland Limited, ticker ASHOKLEY, with the basic industry classification Commercial Vehicles and membership in the NIFTY MIDCAP 50 index, as shown on NSE India.