New Delhi, Sep 24 (NationPress) Shares of Ashok Leyland experienced a decline on Wednesday following a downgrade to 'Neutral' by the global brokerage firm Goldman Sachs. The stock opened with a loss of up to 3 percent and was trading 2.36 percent lower at Rs 140.70.

Goldman Sachs set a price target of Rs 140 for this commercial vehicle manufacturer, indicating that most of the positive aspects of the company's operations have already been accounted for in the current stock price.

The brokerage highlighted that the transition towards higher-tonnage vehicles and the improving margins in the sector have already been incorporated into the stock's recent upswing.

“As the broader economy shifts focus from capital expenditure to consumption, growth in passenger car volumes is anticipated to surpass that of commercial vehicle volumes in the next year,” Goldman Sachs commented.

The brokerage also pointed out several factors that might benefit Ashok Leyland. These include increased replacement demand due to an ageing fleet, advantages from growth in consumption-driven sectors, and a better-than-expected performance from its light commercial vehicles, particularly the newly launched Saathi truck range.

Despite the recent downturn, Ashok Leyland’s stock has shown remarkable performance this year, with gains of nearly 35 percent in 2025. Over the past month, the stock rose 9.5 percent, while in the last six months, it increased by nearly 35 percent.

In the meantime, the Indian automobile manufacturer reported a 47.21 percent sequential drop in its consolidated net profit for the April-June quarter (Q1 FY26).

According to an 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 saw a decline of 20.32 percent, dropping to Rs 11,708.54 crore, compared to Rs 14,695.55 crore in Q4 FY25, as noted in the same filing.