Action Construction Equipment (ACE) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 total income was INR 8,904 Mn, flat year-over-year, with EBITDA margin at 18.59% and PAT up 4.2% YoY; nine-month FY26 income declined 3.7% YoY to INR 23,671 Mn, but EBITDA and PAT grew 3.2% and 4.6% respectively.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Leading manufacturer with over 30 years in the industry, holding 63%+ market share in mobile cranes and ~60% in tower cranes domestically, exporting to 37+ countries.

• Diversified across infra, construction, logistics, manufacturing, defence, and agri sectors, with a strong customer base and extensive service network in 125+ locations.

• Focused on innovation, launching next-gen cranes with AI-integrated safety systems and clutchless transmission, and expanding product portfolio.

Financial highlights

• Q3 EBITDA margin expanded 35 bps YoY to 18.59%; PAT margin at 13.07% (up 73 bps YoY); EBITDA at INR 1,655 Mn, up 0.2% YoY.

• 9M FY26 EBITDA margin rose 125 bps YoY to 18.91%; PAT at INR 3,042 Mn, up 4.6% YoY.

• Diluted EPS for Q3 FY26 at INR 9.78 (up 4.3% YoY); for 9M FY26 at INR 25.56 (up 4.7% YoY).

• Margins expanded sequentially due to favorable product mix and cost efficiencies.

Outlook and guidance

• FY26 revenue expected to be flat to slightly positive in value terms; volume decline anticipated to recover next year.

• Positive medium- to long-term outlook driven by government capex, infrastructure, manufacturing, power, and housing sector growth.

• Exports and defense to contribute upwards of 10% to revenue next year, targeting 15% by FY27.

• Margin profile expected to remain at 18-19% EBITDA (including other income) in coming years.

• Structural positives from government schemes to boost domestic equipment manufacturing and reduce import dependence.