ACE
Large CapAction Construction Equipment Limited
Industrials
Action Construction Equipment Limited (ACE) is India’s most diversified CE Manufacturer with over 31 years presence, operating across Infra, Construction, Logistics, Manufacturing, Defence, and Agri sectors. It is the World’s largest Pick & Carry Crane Manufacturer with 63%+ market share in Mobile cranes and ~60% in Tower Cranes domestically.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/2 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -7% YoY · margin compression · Rev +7% YoY · +20% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,029 Cr | +7.1% | +20.4% |
| EBITDA | ₹172 Cr | +4.9% | +32.3% |
| Operating margin | 17.0% | +0 bps | +200 bps |
| PAT | ₹111 Cr | -6.7% | -4.3% |
| PAT margin | 10.8% | -159 bps | -278 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
ACE reported mixed Q4FY26 results: Total Income grew 5.6% YoY to INR 10,234 Mn, but EBITDA declined 3.4% YoY to INR 1,663 Mn, with margins contracting 150 Bps YoY. PAT fell 6.5% YoY to INR 1,109 Mn. FY26 saw a slight revenue dip (-1.1% YoY) but margin expansion (EBITDA +43 Bps, PAT +30 Bps).
Despite Q4FY26 YoY margin contraction, full-year FY26 margins expanded, driven by product mix and pricing. The strategic KATO JV and new product launches position ACE to leverage robust government capex in infrastructure and manufacturing. However, the decline in sales volume for Cranes/CE/MH in FY26 and increased working capital days warrant close monitoring.
End-user Sector Exposure (FY26)
Latest issuer-disclosed distribution across 4 reported categories.
Heavy Cranes Segment
Strategic 50:50 JV with KATO WORKS CO., LTD. to capitalize on long-term growth opportunities across infrastructure and construction sectors.
New-Age Technology Products
Focused on intelligent equipment with AI-assisted tools to enhance performance, reliability, and safety, including clutch-less transmission cranes.
Indian Manufacturing & Infrastructure Sector
Poised to capture significant growth prospects in Indian Manufacturing & Infrastructure Sector, supported by government initiatives.
Urban Infrastructure Development
Budget propels shift towards regional economic development through City Economic Regions (CERs) and focus on Tier 2 and 3 cities.
ACE-KATO Joint Venture
50:50 JV with KATO WORKS CO., LTD. for Truck Cranes, Crawler Cranes, and Rough Terrain Cranes, combining manufacturing strength with global technology.
New Product Launches
Introduced Next-Gen Cranes with AI-integrated safety (SCOS, ALSS, RAS), Clutch-less transmission cranes, Truck Mounted Aerial Platforms, Flat Top Tower Cranes, Construction Elevators, and All New ADD 95 Tandem Roller.
Government Capital Expenditure
Union Budget FY27 allocates ~INR 12.2 trillion, ~11% YoY growth, with Roads (~INR 3.0 trillion) and Railways (~INR 2.6 trillion) as largest beneficiaries.
Manufacturing Sector Growth
Union Budget FY27 emphasizes scaling manufacturing in 7 strategic sectors with PLI outlay of INR 1.97 lakh crore to enhance domestic manufacturing.
Housing Sector Growth
Housing allocations increased sharply in Union Budget FY27, with PMAY-Urban raised to INR 18,625 crore and PMAY-Gramin enhanced to INR 54,917 crore.
Logistics & Warehousing Expansion
Indian logistics market projected to reach $428.7 Bn by 2033; warehousing market to reach $163.98 Bn by 2034, supported by government policies.
Geopolitical and Input Cost Volatility
Management noted the need for disciplined margin management amid geopolitical and input cost volatility.
Regulatory and Economic Developments
Forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is crucial for assessing overall growth and seasonal trends in the construction equipment sector. QoQ is important for tracking sequential momentum, margin management, and the impact of recent operational changes or market conditions.
Total Income (Q4FY26)
INR 10,234 Mn (+5.6% YoY, +14.9% QoQ)
EBITDA (Q4FY26)
INR 1,663 Mn (-3.4% YoY, +0.5% QoQ)
EBITDA Margin (Q4FY26)
16.25% (-150 Bps YoY, -234 Bps QoQ)
PAT (Q4FY26)
INR 1,109 Mn (-6.5% YoY, -4.7% QoQ)
Long-term Industry Outlook
Management remains positive on the long-term industry outlook.
Growth Strategy
Focused on delivering profitable, volume-led growth through operational efficiencies, calibrated pricing actions, and disciplined margin management.
Strategic Partnerships
Entered strategic 50:50 JV with KATO WORKS CO., LTD. to strengthen presence in the premium heavy crane segment.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | Q4FY26: 16.25% (-150 Bps YoY); FY26: 18.11% (+43 Bps YoY) | Sustained margin expansion through product mix, pricing, and operational efficiencies amidst input cost volatility. |
| Sales Volume (Cranes, CE & MH) | Q4FY26: 3,458 units (-13.7% YoY); FY26: 10,853 units (-18.8% YoY) | Reversal of YoY decline and growth momentum from new products and KATO JV integration. |
| Working Capital Days | FY26: 26 days (vs 18 days in FY25) | Improvement in working capital management to optimize cash flow and reduce operational strain. |
| KATO JV Integration & Performance | Strategic 50:50 JV formed for heavy cranes. | Successful integration, technology upgradation, localization, and export expansion from the joint venture. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Expect 14-15% revenue growth for FY26.
"14-15% revenue growth expected for FY 26"
Anticipate a subdued start to current FY (FY26) due to ongoing geopolitical issues, tariff conflicts, CEV-5 (BS-5) emission norms with cost implications, and seasonal monsoon impact.
"anticipate a subdued start to current FY"
Trend score and candlestick chart
48Neutrallabel neutral
Technical chart
ACEdaily · 6M-3.8%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 52. Wait for confirmation.
- SMA20 falling (~2.3% over last month) — short-term momentum negative.
- RSI(14) at 52 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 11% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 43.0%.
- Growth contributes 22/25 to the score.
Main drags
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 89th percentile within Industrials. Main check: results consistency is weak at 51/100.
High Trust Lite: Promoter holding is 65.4%. Key concern: ROCE trend is -6.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 89th pctile, median 68 · Large: 74th pctile, median 74
128 documents indexed, but claim history is not strong enough yet.
2 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.6%.
- ▸11 years of positive FCF.
Trust risks
- ▸ROCE trend is -6.3%.
- ▸1/4 latest quarters had positive YoY revenue growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 25.40
- P/B
- 5.23
- EV/EBITDA
- 19.54
- Market Cap
- 10526.00Cr
Profitability
- ROE
- 22.90%
- ROCE
- 31.70%
- ROA
- 12.76%
- Dividend Y
- 0.23%
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 40.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 38.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 22.91×
- Altman Z
- 6.24
- Book Value
- 169.00
Cash Flow
- FCF Yield
- 0.64%
- FCF Positive Y
- 11/5
- OCF
- 417.00 Cr
- EPS TTM
- 34.86
Shareholding
- Promoter Hold
- 65.42%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 26%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.