ACE Announces Q4FY26/FY26 Earnings Call Transcript and JV with KATO Works
ACE reported Q4FY26 standalone income of ₹1,021 crore, up 5.58% YoY. FY26 total income was ₹3,395 crore, with PAT at ₹425 crore. The company announced a 50-50 joint venture with KATO Works, Japan, for heavy cranes. A final dividend of 100% (₹2 per share) was recommended. CAPEX of ₹170-185 crore planned for land and a new defense/product plant.
The announcement includes strong financial results, a strategic joint venture that expands the company's product portfolio and market reach in heavy cranes, and a dividend payout, all of which are significant for investors and the company's future.
The company reported improved margins and PAT growth, announced a significant joint venture with KATO Works, and recommended a dividend, all indicating positive business performance and strategic growth initiatives.
Action Construction Equipment Limited (ACE) has announced the release of its Earnings Call Transcript for the fourth quarter and full fiscal year 2026 (Q4FY26/FY26). The call, held on May 21, 2026, featured management including Executive Director Mr. Sorab Agarwal, CFO Mr. Rajan Luthra, and President Mr. Vyom Agarwal.
During the fiscal year 2026, ACE reported a total standalone income of ₹3,395 crores, which was largely flat compared to the previous year. However, the company saw an expansion in its EBITDA margin to 18.33% from 17.52% in FY25. Profit Before Tax (PBT) margin increased to 16.68% from 15.88%, and Profit After Tax (PAT) margin improved to 12.53% from 11.8%. In absolute terms, EBITDA grew by approximately 4% to ₹622.36 crores, PBT increased by 4.3% to ₹566 crores, and PAT rose by 5.4% to ₹425 crores.
For the fourth quarter of FY26, standalone total income stood at ₹1,021 crores, marking a 15% sequential increase and a 5.58% year-on-year growth. The EBITDA for the quarter was ₹163.7 crores, with an EBITDA margin of 16%. PBT and PAT margins were reported at 14.8% and 10.65%, respectively. The company maintained its debt-free status.
The Board of Directors has recommended a final dividend of 100%, equivalent to ₹2 per share, for the year ended March 31, 2026.
A significant development announced is the finalization of a 50-50 joint venture between ACE and KATO Works Company, Japan. This JV will focus on truck cranes, crawler cranes, and rough terrain crane businesses, aiming to enhance technology, localization, and export opportunities in the heavy crane segment.
Management expressed confidence in the long-term outlook for the construction equipment industry, driven by government infrastructure spending, while remaining mindful of geopolitical uncertainties and input cost volatility. The company plans to dynamically manage EBITDA margins and continue with calibrated pricing actions. The Board of Directors has recommended a final dividend of 100%, equivalent to ₹2 per share, for the year ended March 31, 2026.
Regarding future outlook, ACE anticipates a steady start to FY27, with a focus on growth driven by operational excellence and cost efficiency. The company is undertaking capital expenditure of approximately ₹130-135 crores for land acquisition for future expansion and ₹40-50 crores for a new plant for defense machines and new products. The defense business is expected to contribute 5-6% of overall revenue in FY27, amounting to ₹200-220 crores. Price increases have been implemented, with further hikes planned due to rising input costs, particularly steel.
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