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Ashok Leyland shares fell on Wednesday after global brokerage Goldman Sachs downgraded the stock to 'Neutral'.  

The stock opened with losses of up to 3 per cent and was trading 2.36 per cent lower at Rs 140.70.

Goldman Sachs set a price target of Rs 140 for the commercial vehicle maker, saying that most of the positives in the company’s business are already factored into the current stock price.

The brokerage noted that the shift toward higher-tonnage vehicles and improving margins in the industry have already been reflected in the recent rally of the stock.

“With the broader economy moving away from capex and toward consumption, car volume growth is expected to outpace commercial vehicle volume growth over the next 12 months,” Goldman Sachs added.

The brokerage also highlighted that, with the Indian economy moving away from capital expenditure and toward consumption, passenger car sales are expected to grow faster than commercial vehicle sales in the coming year.

However, Goldman Sachs pointed out some factors that could work in Ashok Leyland’s favour.

These include stronger replacement demand due to an ageing fleet, benefits from growth in consumption-driven sectors, and better-than-expected performance of its light commercial vehicles, especially the newly launched Saathi range of trucks.

Despite the recent fall, Ashok Leyland’s stock has delivered strong returns so far this year.

It has gained nearly 35 per cent in 2025. In the past month, the stock rose 9.5 per cent, while in the last six months, it climbed almost 35 per cent.

Meanwhile, the Indian automobile company reported a 47.21 sequential drop in its consolidated net profit for the April–June quarter (Q1 FY26).

According to the exchange filing dated August 14, the company’s earnings fell to Rs 657.72 crore from Rs 1,245.92 crore in the previous quarter (Q4 FY25).

Revenue from operations also declined 20.32 per cent to Rs 11,708.54 crore, compared to Rs 14,695.55 crore in Q4 FY25, the company added in the same filing.