Action Construction Equipment (ACE) Q1 26/27 earnings summary

Executive summary

• Achieved record Q1 performance with total income of INR 8,403 Mn, up 19.5% year-over-year, and improved profitability despite volatile macroeconomic and commodity environments.

• Operational revenues grew 20.5% YoY, driven by robust growth in the construction equipment segment.

• Maintained leadership in mobile and tower cranes with over 63% and 60% domestic market share, respectively.

• Expanded product portfolio with next-gen cranes featuring AI-integrated safety systems and clutchless transmission.

• Strategic 50:50 joint venture with KATO Works to commence operations, enhancing technology and export opportunities in heavy cranes.

Financial highlights

• Standalone total income grew 19% year-over-year to INR 836 crores; EBITDA up 19.66% to INR 170.58 crores.

• Q1 FY27 EBITDA reached INR 1,725 Mn, up 19.9% YoY, with EBITDA margin at 20.53%, up 7 bps YoY.

• PAT for Q1 FY27 was INR 1,195 Mn, up 22.3% YoY, with PAT margin at 14.22%, up 33 bps YoY.

• Sequentially, total income dropped 18.15%, but EBITDA, PBT, and PAT margins expanded by 438, 395, and 353 basis points, respectively.

• Diluted EPS for Q1 FY27 stood at INR 10.04, up 22.3% YoY.

Outlook and guidance

• Growth expected from recovery in Hydra cranes, defense orders, and price increases.

• Full-year revenue growth guidance to be provided by September, reflecting cautious optimism amid ongoing uncertainties.

• Aim to maintain EBITDA margins above 15% for the year, focusing on sustaining profitability.

• Structural growth drivers remain strong, supported by government focus on infrastructure, manufacturing, and logistics.

• Continued public capital expenditure and sectoral policy support expected to drive long-term industry growth.