Action Construction Equipment (ACE) investor relations material

Executive summary

• Q1 FY26 began with subdued demand due to new emission norms, safety certifications, and regulatory changes, but the company maintained profitability and margin growth.

• Over 30 years of industry presence, global reach in 37+ countries, and market leadership in mobile and tower cranes with 63% and 60% domestic market share, respectively.

• Diversified operations across infrastructure, construction, manufacturing, logistics, and agriculture sectors.

• Strong manufacturing, R&D, and customer-centric approach with a wide service network in 125+ locations.

• Auditors issued unmodified limited review reports, confirming compliance and no material misstatements.

Financial highlights

• Q1 FY26 total income was INR 703 crores (₹65,208 lakhs), down 7.6–7.7% year-over-year; EBITDA rose 13.6–14% to INR 1,439 Mn, and PAT increased 15.7–16% to INR 977 Mn.

• EBITDA margin expanded to 20.28–20.46%, and PAT margin to 13.89–13.90%.

• Basic/diluted EPS for Q1 FY26 was INR 8.21, up 16.1% year-over-year.

• Other income contributed significantly, mainly from investment returns on surplus cash.

• Operating margin (consolidated) for Q1 FY26 was 14.24%, up from 13.43% in Q1 FY25.

Outlook and guidance

• Market normalization expected from Q2–Q3 FY26 as price and technology changes settle and monsoon impacts subside.

• Guidance for the year will be provided post-monsoon, depending on macroeconomic and geopolitical factors.

• Indian macro fundamentals remain resilient; lower inflation, rate cuts, and fiscal support expected to aid recovery.

• Medium- to long-term growth momentum is expected to continue, supported by government infrastructure spending.