Action Construction Equipment reported a 5.4% increase in profit after tax (PAT) to INR 425 crores for the financial year ended March 31, 2026, compared to INR 404 crores in the previous year. The company achieved a total income of INR 3,395 crores on a standalone basis, which was flattish year-on-year. EBITDA for the year grew by 4% to INR 622.36 crores, with margins expanding by 81 basis points to 18.33%. The Board of Directors has recommended a final dividend of INR 2 per share.

Q4 FY26 Performance

For the fourth quarter of FY26, the company recorded its best-ever revenue performance with a total income of INR 1,021 crores, representing a 15% sequential increase and 5.58% year-on-year growth. EBITDA for the quarter stood at INR 163.7 crores, while profit before tax (PBT) and PAT were INR 151 crores and INR 108 crores, respectively. The EBITDA margin for the quarter was sustained at 16%, with PBT and PAT margins at 14.8% and 10.65%. The company remains debt-free with sufficient liquidity.

Segment Performance

The cranes, metal handling, and construction equipment business recorded an income of over INR 2,946 crores in FY26, maintaining an expanded margin profile of 18.6% and a profit of INR 548 crores. The agri division registered a 9% growth, generating revenue of around INR 251 crores with margins at 1%.

Strategic Developments

The company finalized a 50-50 joint venture with KATO Works Company, Japan, to manufacture truck cranes, crawler cranes, and rough terrain cranes. Management estimates the JV will contribute INR 300 crores in revenue within 3-4 years, potentially rising to INR 700-800 crores if anti-dumping duties are implemented. Additionally, the company is setting up a new plant for defense equipment with a capital expenditure plan of approximately INR 200 crores for the current year.

Outlook and Guidance

Citing geopolitical uncertainties and volatile input costs, management has withheld annual guidance for FY27. However, the company anticipates a 15-20% increase in demand in Q1 FY27 driven by a low base effect and price hikes. The defense segment is projected to contribute 5-6% of total revenue, estimated at over INR 200-220 crores, up from 3% in the previous year. The company continues to target EBITDA margins in the range of 15-16% and maintains a long-term revenue goal of INR 6,000-6,200 crores by FY29 or FY30.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE731H01025/915a45689b5d4120.pdf

Action Construction Equipment Limited reported a 5.4% increase in profit after tax (PAT) for the fiscal year ended March 31, 2026, reaching INR425 crores. The company’s EBITDA for the year grew by 4% to INR622.36 crores, with margins expanding by 81 basis points to 18.33%. The Board of Directors has recommended a final dividend of INR2 per share for the year.

Financial Performance FY26

On a standalone basis, the company achieved a total income of INR3,395 crores for FY26. Profit before tax (PBT) increased by 4.3% to INR566 crores from INR543 crores in the previous year. The EBITDA margin expansion was driven by operational discipline despite a challenging macroeconomic environment marked by geopolitical headwinds and inflationary pressures.

Q4 FY26 Results

For the fourth quarter, total income stood at INR1,021 crores, a sequential increase of 15% and a year-on-year growth of 5.58%. The company reported an EBITDA of INR163.7 crores for the quarter, with PBT and PAT at INR151 crores and INR108 crores, respectively. The operating margin expanded by 145 basis points sequentially to 16%, while PBT and PAT margins were 14.8% and 10.65%.

Strategic Developments

The company finalized a 50-50 joint venture with KATO Works Company, Japan, to focus on truck cranes, crawler cranes, and rough terrain cranes. This partnership aims to strengthen ACE's presence in the heavy crane segment and accelerate technology upgradation. Management expects the joint venture to generate upwards of INR300 crores in revenue over the next three to four years. Additionally, the company remains debt-free with sufficient liquidity.

Outlook

Management expressed confidence in the medium to long-term growth of the construction equipment industry, supported by government infrastructure spending. However, they noted ongoing challenges regarding volatile steel prices and geopolitical uncertainties. The company plans to implement calibrated price increases to manage input cost inflation and sustain its EBITDA margin profile in the range of 15% to 16%.