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Action Construction Equipment Ltd. (ACE) reported a healthy Q1FY27 performance

ICICIdirect Research 21 Jul 2026 DISCLAIMER

News: Action Construction Equipment Ltd. (ACE) reported a healthy Q1FY27 performance, with consolidated revenue increasing 20.5% YoY to ₹785.7 crore (vs. ₹652.1 crore), driven by the Cranes, Material Handling & Construction Equipment segment, which grew 22.6% YoY to ₹742.4 crore, while the Agriculture Equipment segment declined 6.4% YoY to ₹45.7 crore. EBITDA increased 27.0% YoY to ₹117.9 crore, with EBITDA margin expanding to 15.0% from 14.2% in Q1FY26. PAT rose 22.3% YoY to ₹119.5 crore, while PAT margin improved to 15.2% from 15.0%. Construction equipment volumes increased 17.2% YoY to 2,740 units, while realization per construction equipment improved 4.6% YoY to ₹27.1 lakh/unit, supporting profitability. 

View: ACE's healthy performance was driven by sustained strength in its core Cranes, Material Handling & Construction Equipment business, which contributed 94.2% of revenue and benefited from 17.2% YoY volume growth and 4.6% YoY improvement in realizations. The company has already implemented cumulative ~12-13% price hikes during CY26 and continues to pursue further calibrated pricing actions to mitigate input cost inflation. Along with disciplined cost management, these initiatives are expected to help sustain EBITDA margins in the 15–16% range, in line with management guidance. Continued infrastructure-led demand, realization improvement, execution of the ACE–KATO JV, and recovery in the Agriculture Equipment segment remain key monitorables.

Impact: Positive

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