Construction and material handling equipment major Action Construction Equipment Ltd (ACE) demonstrated robust growth in the third quarter of FY25, registering its highest-ever quarterly revenue of Rs 873.10 crores, driven by strong demand across segments and efficient cost management.
The company’s consolidated total income grew by 16.6% year-on-year, while EBITDA margins expanded by 204 basis points to 18.24%, showcasing operational efficiency improvements. The standalone operational revenue witnessed a 15.93% growth from Rs 753.15 crores in the corresponding quarter last year.
The company’s profitability metrics showed significant improvement, with EBITDA growing by 27.40% to Rs 160.38 crores compared to Rs 125.89 crores in the same quarter last year. The profit before tax (PBT) increased by 26.49% to Rs 144.93 crores, while profit after tax (PAT) rose by 21.05% to Rs 107.15 crores, marking the best quarterly performance in the company’s history.
In the core segment of Cranes, Material Handling & Construction Equipment, ACE recorded consolidated revenue of Rs 795.73 crores, up 15.19% from Rs 690.79 crores in Q3 FY24. The segment’s volume growth was particularly strong at 17.92% year-on-year, with sales of 3,539 units during the quarter. The segment’s margins expanded significantly by 375 basis points year-on-year to Rs 154.38 crores.
The company’s Agri Equipment Division registered revenue of Rs 77.37 crores with a margin of 4.73%. The management expects continued momentum in this segment, supported by adequate water reservoir levels and the government’s focus on agricultural productivity.
For the nine months ended FY25, ACE’s operational revenue stood at Rs 2,361.07 crores, marking a 13.75% growth compared to the same period in FY24. The company maintained strong profitability with EBITDA of Rs 428.07 crores, showing 30% growth year-on-year, while PAT increased by 24.29% to Rs 285.23 crores.
Executive Director Sorab Agarwal attributed the strong performance to the company’s focus on customer centricity, execution capabilities, and operational agility. He highlighted the government’s continued infrastructure push, with capital expenditure estimated to remain above 3% of GDP for the third consecutive year, as per the Union Budget 2025-26.
The margin expansion was achieved through a combination of operating leverage, improved product mix with better price realizations, efficient cost control measures, and favorable commodity prices. The company’s performance aligns with the government’s increased focus on infrastructure development, with the share of capital expenditure in the total budget being stepped up to 22.1% in FY26 (BE) from 15.6% in FY22.
ACE has established itself as a significant player in India’s construction and material handling equipment sector since its inception. The company’s diverse product portfolio includes mobile cranes, tower cranes, construction equipment, and agricultural machinery. The company has been benefiting from India’s infrastructure push and increasing mechanization in the agricultural sector.
Looking ahead, the management remains optimistic about medium to long-term prospects, citing the government’s focus on infrastructure, manufacturing, power, logistics, and housing sector development. With its enhanced capacity and operational capabilities, ACE appears well-positioned to capitalize on these opportunities while maintaining its growth trajectory.