Action Construction Equipment (ACE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began with subdued demand due to new CEV Stage V/BS V emission norms, regulatory changes, and early monsoon, but profitability and industry-leading margins were maintained.

• 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.

• Diversified operations across infrastructure, construction, manufacturing, logistics, and agriculture sectors, supported by strong R&D and a wide service network.

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

Financial highlights

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

• EBITDA margin expanded to 20.46%, PAT margin to 13.89%, and operating margin to 14.24% year-over-year.

• Basic EPS for Q1 FY26 was ₹8.21, up from ₹7.07 in Q1 FY25.

• Margin expansion was driven by cost efficiencies, soft commodity prices, and price increases.

• Final dividend of ₹2.00 per share for FY25 was recommended, pending AGM approval.

Outlook and guidance

• Market normalization is expected from Q2/Q3 FY26 as monsoon recedes and regulatory impacts subside.

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

• Medium to long-term growth momentum is expected, supported by government infrastructure focus and sectoral growth drivers.