Shares of Ashok Leyland surged 7% to ₹130 on August 18 after the company reported in-line Q1FY26 results, with steady operating performance prompting brokerages to turn bullish and project up to 15% further upside.

UBS reiterated a “buy” rating with a ₹150 target, citing a margin beat driven by operational discipline. It expects MHCV growth in mid-single digits and slightly stronger growth in the LCV segment. Global operations remain firm, while Switch Mobility, the company’s EV arm, turned PBT positive in Q1.

Choice Broking also maintained a “buy” call with a ₹150 target, highlighting an aggressive product pipeline, including 280–360 HP MHCVs for mining, construction, and logistics, as well as a bi-fuel LCV for metros and upgraded products for overseas markets. It said these offerings will strengthen pricing power, customer stickiness, and competitive positioning, especially with demand revival expected post-monsoon and government-led infrastructure push.

On the financial front, Ashok Leyland posted a net profit of ₹594 crore, up 13% from ₹526 crore a year earlier. Revenue rose 1.5% to ₹8,725 crore, while EBITDA climbed 6.6% to ₹970 crore. Margins expanded to 11% from 10.6% last year, aided by cost control and favorable pricing.