LCV VAHAN Market Share: 12.7% for full year (gain of 80 basis points YoY); 12.8% for Q4 (gain of 90 basis points YoY)
Export Volumes: Historic high of 18,082 units, robust growth of 18.5% YoY (from 15,255 units)
Q4 Export Volume: 5,322 units, marginally lower YoY due to international logistics issues in March
Non-Vehicle Business Performance:
Domestic Aftermarket Revenue: Up 11.2% YoY for quarter; higher 9.5% for full year
Power Solutions Business Revenue: Higher by 16.4% YoY
Defense Business Revenue (including subsidiary ALDS): Higher 20% YoY; approximately ₹1,200 crores overall (₹800 crores in standalone books)
Spares Revenue (FY26): Approximately ₹3,800 crores
Exports Revenue (FY26): Crossed ₹3,000 crores at ₹3,200 crores
Subsidiary Performance
Switch Mobility India:
Achieved net profitability in FY26 (PAT ~₹100+ crores), a major milestone
Market leadership in electric buses and 2-4 ton electric LCV market
Significant scale-up in deliveries:
1,530 electric buses (higher 238% YoY)
1,600 electric LCVs (higher 56% YoY)
Order book at year-end: 1,600 units
Hinduja Leyland Finance (HLF):
AUM expanded by 24% YoY to approximately ₹59,000 crores
PAT at ₹491 crores, higher 20% YoY
Consolidated net NPAs at approximately 1.4%
Reverse merger with NBL Ventures progressing as per plan, expected consummation within current or next quarter
Hinduja Housing Finance (HHF):
AUM grew by 15% YoY to approximately ₹16,000 crores
PAT at ₹387 crores, higher 4% YoY
Maintained healthy asset quality
OHM Mobility (E-MaaS subsidiary):
Improved operational fleet to over 1,400 e-buses
Strategic Developments and Business Updates
Product Launches and Premiumization:
Launch of HIPPO tractors and TAURUS tippers with industry's best power and torque
New MAV category trucks with improved powertrain of 280 HV
New 4.1 ton Bada Dost in LCV segment with industry best payload
Launch of advanced LCV product Phoenix for export markets
Strong product pipeline with substantial capex allocation for new product capabilities
Network Expansion:
Added more than 100 touch points each in MHCV and LCV businesses
Over 45% of touch point additions in North and Northeast regions
Total network: 2,104 touch points (1,159 for MHCV and 945 for LCV)
International network expanded to 4 new countries in previous year
Electric Mobility and Alternative Propulsion:
Groundbreaking for greenfield battery pack manufacturing facility at Pillaipakkam near Chennai
Target start of production: Q2 of next year (FY27)
CALB partnership on battery ecosystem progressing (business currently housed within Ashok Leyland)
PLI for cell manufacturing: Still working to match government scheme thresholds, better update expected in 4-5 months
Defense Business:
Order book at year-end: Above ₹1,500 crores
Strong tender win pipeline
Expected continued strong growth for next 2-3 years
ESG Commitments:
Road to School and Road to Livelihood program extended reach to about 6.3 lakh students
Significant improvement in Dow Jones Sustainability Index ESG score (now in global top 2% of industrial engineering and electrical equipment companies)
Achieved 77% RE status against 69% in FY25 (Tamil Nadu plants at 91% RE100)
Dividend Declaration
Board of Directors recommended a second interim dividend of ₹2.50 per share
Management Commentary and Outlook
Demand Environment:
Domestic MHCV industry volume in Q4 higher 21.5% YoY; full year higher 12% YoY
Demand drivers include GST 2.0 rate rationalization (reduced prices by ~10%) and replacement of aged fleets
April positive, May not showing significant slowdown despite diesel price concerns
Demand resilience strong based on customer conversations and fleet expansion plans
Export demand remains strong in GCC, Africa, and SAARC markets despite oil price increases
Logistics issues affecting export volumes in March/April, now returning to normalcy
Margin Outlook and Cost Management:
Q4 price increase of about 1% effective January
Commodity cost increases (particularly steel) managed through value engineering, e-sourcing, and commercial negotiations
For Q1 FY27: Price increase of 1-1.5% taken, but commodity cost pressure remains significant challenge
Company implementing cross-functional teams to examine operating expenses for reduction opportunities
Focusing on discretionary cost restraint without sacrificing future growth programs
Capex and Investment Plans:
FY27 capex plan: ₹750-1,000 crores (similar to FY26's ₹1,000 crores)
Subsidiary investments to be need-based:
HLF and HHF may require funds for growth (Tier 1 capital lower than peers)
OHM may require funds for vehicle purchases
Switch in comfortable position after achieving profitability
Segment-wise Demand Outlook:
Expect tipper segment and multi-axle segment to be fastest-growing
Trip trailer segment (used in mines) showing promise
Moderation expected in ICV and tractor long haul segments relative to Q4 levels
Defense business expected to continue 20%+ growth trend
Geographic focus on mining regions (Maharashtra, Orissa, Chhattisgarh, Jharkhand, West Bengal) and infrastructure projects
Risks and Challenges Mentioned
Macroeconomic headwinds including global economic uncertainties
