Ashok LeylandNSE:ASHOKLEY +2.28%86 Net Margin % is 7.53% as of Mar. 2026, which is 31% above its 10-year median of 5.74. GuruFocus rates NSE:ASHOKLEY with a GF Score™ of 86/100 and a GF Value™ of ₹129.40 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 211 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks better than 58.29% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Ashok Leyland's Net Income for the
three
months ended in Mar. 2026 was ₹12,907 Mil. Ashok Leyland's Revenue for the
three
months ended in Mar. 2026 was ₹171,389 Mil. Therefore, Ashok Leyland's net margin for the quarter that ended in Mar. 2026 was 7.53%.
The historical rank and industry rank for Ashok Leyland's Net Margin % or its related term are showing as below:
NSE:ASHOKLEY'
s Net Margin % Range Over the Past 10 Years
Min: -1.37 Med: 5.74 Max: 7.07
Current: 6.19
NSE:ASHOKLEY's Net Margin % is ranked better than 58.29% of 211
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 5.14
vs NSE:ASHOKLEY: 6.19
Ashok Leyland (NSE:ASHOKLEY) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Ashok Leyland Net Margin % Related Terms
Ashok Leyland Net Margin % Historical Data
* Premium members only.
The historical data trend for Ashok Leyland's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:ASHOKLEY vs CAT, DE, PCAR: Net Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Ashok Leyland's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ashok Leyland Net Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's Net Margin % distribution charts can be found below:
* The bar in red indicates where Ashok Leyland's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ashok Leyland (NSE:ASHOKLEY) has a Net Margin % of 7.53% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ashok Leyland and its competitors. This is 31% above median its historical median of 5.74. According to the industry distribution chart, Ashok Leyland ranks #88 out of 211 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 41.7%.
Is Ashok Leyland's Net Margin % too high?
Ashok Leyland's current Net Margin % of 7.53% is 31% above median its 10-year median of 5.74. The Farm & Heavy Construction Machinery industry median Net Margin % is 5.14. Ashok Leyland's value of 7.53% is 46.5% above this industry median. Based on the distribution chart, Ashok Leyland ranks #88 out of 211 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Ashok Leyland has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's Net Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #88 out of 211 companies for Net Margin %. This puts Ashok Leyland in the upper half of its industry. The industry median Net Margin % is 5.14. Ashok Leyland's value of 7.53% is 46.5% above this benchmark. While the company's 10-year median is 5.74 vs. the industry median of 5.14, Ashok Leyland has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Farm & Heavy Construction Machinery company?
The median Net Margin % among Farm & Heavy Construction Machinery companies is 5.14, based on 211 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ashok Leyland's current Net Margin % of 7.53% is 46.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median Net Margin % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current Net Margin % is 7.53%, which is 31% above median its own 10-year median of 5.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (NSE:ASHOKLEY) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹129.40, compared to a current price of ₹154.91 — trading 19.7% above its estimated fair value. The current Net Margin % is 7.53%, which is 31% above median its 10-year median of 5.74 and 46.5% above the Farm & Heavy Construction Machinery industry median of 5.14. Ashok Leyland's overall GF Score™ is 86/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ashok Leyland (NSE:ASHOKLEY), the current Net Margin % is 7.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ashok Leyland (NSE:ASHOKLEY) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹154.91 is trading 19.7% above its estimated GF Value™ of ₹129.40.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for NSE:ASHOKLEY:
Net Margin %: 7.53% (31% above median its 10-year median of 5.74)
GF Value™: ₹129.40 vs. price of ₹154.91 (19.7% above fair value)
Industry Position: 46.5% above the Farm & Heavy Construction Machinery median (#88 of 211)
No single metric tells the full story. See the NSE:ASHOKLEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
86GF Score
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