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Key Conference Call Highlights

Industry update & performance:

* FY26 marked a milestone year for AL with the company delivering its highestever CV volumes, revenue, profitability and cash surplus, driven by broadbased growth across MHCV, LCV, exports and non-CV businesses

* The management highlighted that domestic MHCV industry volumes grew 21.5% YoY in Q4FY26 and 12% YoY for FY26, aided by GST 2.0 rate rationalisation and replacement demand from ageing fleets

* AL’s domestic MHCV market share stood healthy at ~30.8% in Q4FY26, while MHCV truck market share for FY26 was ~30.2%; MHCV bus market share remained industry-leading at ~34.1%

* LCV business continued to outperform industry growth, with Q4FY26 domestic LCV volumes rising 23% YoY and Vahan market share improving 90 bps YoY to 12.8%; full-year LCV volumes reached a record 74.3k units with market share at 12.7%

* Export business achieved historic annual volumes of 18.1k units in FY26, up 18.5% YoY, although Q4FY26 exports remained marginally lower YoY due to temporary international logistics disruptions during March and April

* Overall CV volumes crossed an all-time high of 220.4k units in FY26, surpassing the previous peak achieved in FY19

* Non-CV businesses also delivered healthy growth momentum, with domestic aftermarket revenue growing 11.2% YoY in Q4FY26 and 9.5% YoY for FY26; Power Solutions revenue increased 16.4% YoY, while defence business revenue grew 20% YoY, supported by a robust order pipeline

* Q4FY26 revenue stood at INR 141.6 Bn, up 19% YoY, while EBITDA came in at INR 20.7 Bn with EBITDA margin at 14.6%; FY26 EBITDA margin improved 30 bps YoY to 13%, despite commodity headwinds, aided by better price realisations, value engineering initiatives and favourable product mix

* PAT excluding exceptional items grew 13% YoY in Q4FY26 to INR 14.1 Bn, while FY26 PAT excluding exceptional items rose 22% YoY to INR 39.1 Bn

Update on EVs, exports & subsidiaries:

* Switch Mobility India delivered a strong turnaround in FY26, attaining profitability for the first time with PAT of ~INR 1 Bn+, supported by healthy scale-up in electric buses and electric LCVs
* Switch India achieved market leadership in electric buses and 2–4T electric LCV categories, with electric bus deliveries growing ~238% YoY to ~1,530 units and electric LCV volumes rising ~56% YoY to ~1,600 units during FY26; order book stood healthy at ~1,600 vehicles at year-end

* The management announced groundbreaking for a greenfield battery pack manufacturing facility near Chennai, which will initially cater to captive EV demand and energy storage systems

* Commercial production is targeted from Q2FY28E, with future phases focused on non-captive demand and eventual cell manufacturing

* Export demand across GCC, Africa and SAARC markets remained healthy despite temporary logistics bottlenecks. The management maintained a positive outlook on export demand recovery as logistics normalise in the coming quarters

* Hinduja Leyland Finance reported healthy growth with AUM increasing 24% YoY to INR 590 Bn, while PAT grew ~20% YoY to INR 4.9 Bn. Hinduja Housing Finance AUM rose 15% YoY to INR 160 Bn with PAT growth of 4% YoY; both entities maintained consolidated net NPA at 1.4%

Capacity, investments & balance sheet:

* FY26 capex stood at ~INR 10.5 Bn, largely directed towards new products, future technologies, alternate powertrains and EV initiatives

* Investments in subsidiaries during Q4FY26 stood at INR 3.7 Bn, primarily towards repayment of loans in Optare/Switch UK; full-year subsidiary investments stood at INR 3.9 Bn

* The management guided FY27E capex in the range of INR 7.5–10 Bn, while future investments into subsidiaries such as Hinduja Leyland Finance, Hinduja Housing Finance and OHM Mobility would remain need-based

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