Action Construction Equipment (ACE) reported largely stable performance in Q2 FY26, navigating a challenging environment marked by new emission norms and infrastructure moderation. Total income remained flat at ₹782.18 crores, with improved EBITDA margin of 19.40%. The company saw growth in EBITDA, PBT, and PAT year-over-year, and anticipates a demand recovery supported by strong policy and resilient macro environment. The Make in India initiative and anti-dumping duties on imported cranes could be positive catalysts.
Financial Performance
ACE’s total income for Q2 FY26 was ₹782.18 crores. The EBITDA margin reached 19.40%, increasing 137 basis points. EBITDA grew by 6.72% to ₹151.75 crores. Profit Before Tax (PBT) expanded to ₹137.49 crores, and Profit After Tax (PAT) reached ₹103.87 crores.
Segment Performance
The cranes, material handling, and construction equipment segment contributed 94% of total revenue, registering ₹694 crores in revenue. The agriculture segment recorded revenue of ₹47.13 crores in Q2 FY26. The company sold 2,348 units in the quarter.
H1 FY26 Performance
For the first half of FY26, total income was ₹1,485 crores. EBITDA grew by 10% to ₹294.30 crores, PBT increased by 11.13%, and PAT grew by 12.7% to ₹200.70 crores. The EBITDA margin for H1 stood at 19.82%, PBT at 17.78% and PAT at 13.51%.
Strategic Outlook
ACE anticipates achieving flattish to single-digit revenue growth in FY26. The company also projects a modest expansion in EBITDA margins, driven by cost efficiencies and product mix improvements.
Key Growth Drivers
Management cited the following as key drivers for future growth:
Continued government focus on infrastructure creation.
Reduction in direct and indirect tax burdens.
Improving liquidity conditions and softening interest rates.
Progressive duty reforms in support of the Make in India agenda.
Defense Sector Focus
ACE is targeting 5% to 8% of revenue from the defense sector in the medium to long term. The company is executing projects involving specialized cranes with DRDO, Ashok Leyland Defence and Tata Advanced Systems.
Source: BSE
