Commercial Vehicles industry

4 companies · ₹2.7 L cr · 3 with AI deep dives · Q1FY27 report

Record domestic volumes, but commodity inflation consumes operating leverage sector-wide

Mid cyclemargin range-bound near 17.7%

Revenue YoY: +12.1%
EBITDA margin: 17.7%; -30bps YoY
Price, 1 year: +32.8%; 67% of names up
P/E vs own 5y: +31.9%; 33.8x now

Exhibit 1The quarter in numbers

constant panel of 3 companies above ₹500 cr

aggregate revenue (₹ cr)EBITDA margin (right axis)

Metric	Jun 26	Mar 26	QoQ	Jun 25	YoY	Peak	vs peak
Revenue	14,246 cr	18,385 cr	-22.5%	12,707 cr	+12.1%	18,385 cr	-22.5%
EBITDA margin	17.7%	18.6%	-90bps	18.0%	-30bps	19.8%	-210bps

Revenue

Jun 26: 14,246 cr
Mar 26: 18,385 cr
QoQ: -22.5%
Jun 25: 12,707 cr
YoY: +12.1%
Peak: 18,385 cr
vs peak: -22.5%

EBITDA margin

Jun 26: 17.7%
Mar 26: 18.6%
QoQ: -90bps
Jun 25: 18.0%
YoY: -30bps
Peak: 19.8%
vs peak: -210bps

Breadth: 100% of 3 companies grew revenue year on year (was 100% a quarter earlier) and 33% expanded margin (was 33%).

Exhibit 2What it costs

28.1x - 41.66x across the panel today

The median name trades at 33.8x, +31.9% against this industry's own 5-year median of 25.6x, and -43.2% against its own peak of 59.5x.

Exhibit 3Structure

₹2.7 L cr

Tata Motors Ltd is 60.4% of this industry by market cap. The top 5 are 100% and the top 10 are 100%.

large 2small 24 above ₹500 cr

Exhibit 4Screen

P/E below the sub-industry median of 33.77x, 5y ROCE above its median of 19.09%, and at least 2 growth triggers stated on the latest earnings call.

Which names clear this screen is premium

The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.

See plans →

Exhibit 5Coverage (4 of 4)

Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.

Company	Mcap	P/E	EV/EBITDA	ROCE	Margin	Rev YoY	Read
Tata Motors Ltd	₹1.6 L cr	38.7x	22.5x	24.7%	8.6%	-	Unlock
Ashok Leyland Ltd	₹96,302 cr	28.1x	14.6x	14.4%	19.3%	+11.6%	Unlock
SML Mahindra Ltd	₹9,538 cr	58.2x	34.2x	38.7%	9.5%	+13.2%	Unlock
Atul Auto Ltd	₹1,242 cr	26.4x	16.3x	12.1%	10.4%	+42.9%	Unlock

Tata Motors Ltd

Mcap: ₹1.6 L cr
P/E: 38.7x
EV/EBITDA: 22.5x
ROCE: 24.7%
Margin: 8.6%
Rev YoY: -

Unlock

Ashok Leyland Ltd

Mcap: ₹96,302 cr
P/E: 28.1x
EV/EBITDA: 14.6x
ROCE: 14.4%
Margin: 19.3%
Rev YoY: +11.6%

Unlock

SML Mahindra Ltd

Mcap: ₹9,538 cr
P/E: 58.2x
EV/EBITDA: 34.2x
ROCE: 38.7%
Margin: 9.5%
Rev YoY: +13.2%

Unlock

Atul Auto Ltd

Mcap: ₹1,242 cr
P/E: 26.4x
EV/EBITDA: 16.3x
ROCE: 12.1%
Margin: 10.4%
Rev YoY: +42.9%

Unlock

Exhibit 6What managements said

from Agricultural, Commercial & Construction Vehicles earnings calls · as of 2026-06-30

headwindCommodity cost inflation compressing margins across all sub-segments7 managements

Steel, aluminium, copper, rubber, and in some cases freight and polymers are simultaneously elevated. TMCV reported a 340-bps variable cost headwind of ₹649 crore that more than…

TMCV (Q1FY27): “EBITDA was ₹2,300 crore at a margin of 11.7%, down 60 basis points YoY. The moderation is…”

tailwind6 managements mixed5 managements headwind4 managements headwind2 managements tailwind3 managements

5 more themes from this quarter's earnings calls are locked. A free account opens 3 full reports a quarter: every theme with verbatim management quotes, the demand picture, companies running against the tide, and the regulatory & disruption watch. Sign up free →

Exhibit 7Outlook

The outlook and what resolves next quarter

Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.

Create a free account →

AppendixThe other 0 companies

1-0

sort: mcap · composite · name