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

Executive summary

• Q3 FY26 total income was flat year-over-year at INR 888 crore (INR 8,904 Mn), with EBITDA margin at 18.5-18.59% and PAT up 4.2-8.15% to INR 115.88 crore (INR 1,164 Mn).

• Nine-month FY26 income declined 3.21-3.7% year-over-year to INR 2,373 crore (INR 23,671 Mn), but EBITDA grew 3.2-7.15% to INR 458 crore (INR 4,477 Mn), and PAT rose 4.6-11% to INR 316 crore (INR 3,042 Mn).

• Sequentially, Q3 operational revenues grew 15% quarter-on-quarter, with margin expansion despite a one-time INR 5.5 crore provision for new labor codes.

• 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.

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

Financial highlights

• Q3 EBITDA grew 0.2-2.48% year-over-year to INR 164 crore (INR 1,655 Mn); margin expanded 35-74 bps to 18.5-18.59%.

• Q3 PAT up 4.2-8.15% to INR 115.88 crore (INR 1,164 Mn); PAT margin expanded 73-117 bps to 13.04-13.07%.

• Nine-month EBITDA margin expanded 125-186 bps to 18.91-19.32%; PAT margin for 9M FY26 at 12.85% (up 102 bps 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).

• Gross margins improved to 32-34% from 29-30% due to cost efficiencies, product mix, and pricing power.

Outlook and guidance

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

• Medium to long-term growth prospects remain strong, with capacity to support INR 5,500-6,000 crore revenue.

• Management targets INR 6,000-7,000 crore revenue by FY29/30, with no external funding required.

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

• EBITDA margin guidance for FY27/28 is 18-19% (including other income), 15% (excluding other income).