Action Construction Equipment Limited (ACE) reported a flat total income of INR 888 crores for Q3 FY26, achieving an EBITDA margin of 18.5%. Management noted stabilization in demand following regulatory transitions. The company is optimistic about future growth driven by infrastructure spending, while current capacity sits above INR 5,000 crores, with plans to reach INR 6,000–7,000 crores by FY’29 or FY’30.
Q3 FY26 Standalone Financial Performance
For the third quarter of FY ’26 (ended December 31, 2025), Action Construction Equipment Limited reported a total income of approximately INR 888 crores, marking a flat year-on-year performance. The EBITDA grew by 2.48% to INR 164 crores (up from INR 160 crores last year), resulting in an EBITDA margin expansion to 18.5%. Profit After Tax (PAT) grew by 8.15% to INR 115.88 crores.
For the 9 months ended FY ’26, total income declined by 3.21% to INR 2,373 crores. Despite this, EBITDA grew by 7.15% to INR 458 crores, with the margin expanding by 186 basis points to 19.32%. PAT for the 9-month period grew by 11% to INR 316 crores.
Sequential Improvement and Operational Focus
Sequentially, Q3 FY26 saw operational revenues grow by 15% quarter-on-quarter. Operating EBITDA increased by 16.28% to INR 128 crores. Management noted that margins reflected a one-time INR 5.5 crores provision related to the New Labour Codes.
Management reaffirmed that the initial softness due to the transition from BS III/IV to CEV V has stabilized. The outlook remains positive due to expected government support in infrastructure and manufacturing, with the company expecting its top line to remain flattish during the current year but with an improved margin profile.
Segment Contributions and Competition
The Crane Metal Handling and Construction Equipment segment contributed 90% of total revenue, achieving revenue of INR 763 crores (a 10% growth over Q2 FY26), with margins expanding to 20%. The Agri segment contributed about 10%, generating revenue of INR 89.44 crores.
Regarding Chinese competition, management stated that in core business (pick and carry cranes up to 30-35 tons), ACE faces no problem or competition. However, in the heavier crane segment (truck and crawler cranes), Chinese players have been aggressive due to predatory pricing and credit terms. ACE has applied for anti-dumping duties, which were recommended in September but remain un-notified.
Capacity, Growth Outlook, and Future Plans
Current peak revenue capacity is upwards of INR 5,000 crores, potentially reaching INR 5,500–6,000 crores with minor adjustments. The company plans to reach INR 6,000 crores to INR 7,000 crores by FY ’29 or FY ’30. Current revenue stands near INR 3,300–3,400 crores, meaning current capacity is sufficient for the next 1–2 years.
The company is focused on defense and exports, aiming for a combined contribution of about 15% of revenue (4-5% from defense, 10% from exports) next year. Furthermore, management highlighted the potential benefits of the proposed CIE (Construction and Infrastructure Equipment) PLI scheme for domestic manufacturing.
Margin Sustainability and Product Mix
Gross margins, which have risen to the 32% to 34% range, are expected to be sustainable due to pricing power and cost efficiencies. Margin improvement in Q3 was driven by a shift in product mix, with new generation cranes and higher tonnage cranes becoming more popular than traditional hydra cranes.
Regarding Backhoe Loaders, management believes this category, currently averaging 800-900 units annually, can easily grow 3x over the next 5 years, targeting 1,300-1,200 units in the coming year.
Electric Crane Update and Land Acquisition
The new electric cranes are expected to be ready for commercial sale within this quarter (Q4 FY26), pending final ARAI approvals for battery systems. Management is also proceeding with land acquisition in Indore and Faridabad/Palwal to support future expansion, primarily to rationalize logistics costs and secure land at favorable prices for new facilities.
Source: BSE
