Action Construction Equipment (ACE) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 saw stabilization after a modest Q1 decline, with early recovery signs and a constructive macro environment supporting future growth.

• Over 30 years of industry presence, leading in mobile and tower cranes with 63% and ~60% domestic market share, and a global footprint in 37+ countries.

• Major order from Ministry of Defence for 1,121 Rough Terrain Forklifts worth ₹420 crore, partially executed in current FY.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2025 were approved, with limited review reports issued without qualification by the auditors.

• The company deconsolidated its investment in SC Forma SA during the period, resulting in a gain on divestment of Rs. 1,286 lakhs.

Financial highlights

• Q2 FY2026 consolidated total income was INR 782.18 crore (Rs. 7,736 Mn), flat year-over-year; EBITDA margin expanded to 19.40% with EBITDA at INR 151.75 crore, up 6.72% YoY.

• Q2 FY26 consolidated profit after tax was Rs. 9,006 lakhs, compared to Rs. 9,482 lakhs in Q2 FY25; standalone PAT for Q2 FY26 was INR 103.87 crore, up 131 bps YoY.

• H1 FY2026 total income was INR 1,485 crore, down 4% YoY, but EBITDA grew 10% to INR 294.3 crore; H1 PAT grew 12.7% to INR 200.7 crore.

• H1 FY26 EBITDA margin expanded 180 bps YoY to 19.12%; PAT margin up 119 bps to 12.72%.

• Diluted EPS for H1 FY26: ₹15.78, up 5% YoY.

Outlook and guidance

• Flattish to single-digit revenue growth expected in FY2026, with modest EBITDA margin expansion from cost efficiencies and improved product mix.

• Medium to long-term revenue guidance: INR 4,000–4,400 crore by FY2027 and INR 6,000–6,200 crore by FY2029–30.

• Anti-dumping duty on Chinese cranes and resilient macroeconomic fundamentals in India expected to provide long-term strategic advantage.

• H2 typically contributes 55–60% of annual revenue; recovery expected to strengthen from mid-Q3 onward.

• Board recommended a final dividend of Rs. 2.00 per equity share for FY25, approved by shareholders.