Action Construction Equipment Limited — Q3 FY26
ACE reported a flattish Q3 FY26 with total income of ~₹888 crore, but EBITDA margin expanded 74bps to 18.5% and PAT grew 8.15% to ₹115.88 crore.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
96%Questions answered0Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Competition from Chinese players in crane category
Asked by GV Coyle, scenario Alpha
Management directly addressed the question, distinguishing between small and large cranes.
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Question
what are you seeing in the terms of the competition from the Chinese players? are you seeing any kind of increase in their intensity in the terms of more import from China in the crane category?
Management (Mr. Agarwal)
Chinese players are reasonably aggressive... Coming on to the cranes... pick and carry cranes... India is self-sufficient... we faced no problem from any Chinese company. But with respect to the bigger cranes... Chinese have been very aggressive... predatory pricing and credit terms.
Partial answer
High priority
Growth outlook for FY27 and FY28 given improving environment and Chinese competition
Asked by GV Coyle, scenario Alpha
Management gave qualitative outlook but no quantitative growth guidance for FY27/28.
no specific growth numbers givenqualitative only
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Question
industry environment is improving and on the other side the Chinese competition is rising so how do you see the growth outlook maybe in fa 27 and 28 because we are having the capacity with us right so what do you think about the outlook
Management (Mr. Agarwal)
We have hardly any competition from Chinese... with respect to our core business... We are expecting growth there... we expect that we should be in positive territory year on year in this quarter and going forward in the next year.
Answered
High priority
Current peak revenue capacity and ramp-up timeline
Asked by GV Coyle, scenario Alpha
Management provided specific capacity and revenue targets with timeline.
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Question
what is our peak revenue capacity that we have and how fast can we reach close to that number?
Management (Mr. Agarwal)
Our current capacity is upwards of 5,000 crores... by FI29 or latest by FI30 we should be somewhere between 6,000 to 7,000 crores... we already have a capacity of close to 5,500 crores. We are doing close to about 3,400 crores plus minus.
Answered
High priority
Defense and export capability and plans
Asked by Koshik Podar, KB Capital Markets Private Limited
Management gave specific percentages and order book details.
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Question
Can you expand a bit on your defense as well as export capability or what you have in mind on both these spheres?
Management (Mr. Agarwal)
we feel that we can easily do a 15% type of revenue... defense as well as export business put together maybe a 10% contribution coming from exports... and a 4-5% coming from defense... currently we have orders of approximately 500 crores in hand...
Answered
High priority
Product-wise margins and growth expectations for construction vs agricultural equipment
Asked by Rotten Char, Global Consul and Research
Management provided specific margin percentages for both segments.
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Question
construction equipment on a quarterly basis has seen a lower growth as compared to the agricultural equipment... which one has a higher margin... do you expect any increase like further growth?
Management (Mr. Agarwal)
construction equipment we this quarter we are already at close to about 20% EBITDA level... agricultural equipment... we were close to about 4-4.5%... our profitability has gone down to about a percentage... our endeavor is that needs to go to at least 12 to 15% level.
Answered
High priority
Full year guidance: flat or growth, volume or value
Asked by Vijay Pande, Noama
Management clearly stated flat to positive in value, decline in volume.
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Question
in terms of the guidance... is it flat cross or is this large scope or suffice? 76 for full year and does it include volume or is it on value zones?
Management (Mr. Agarwal)
current year I think will be flat flat to positive but yes flat... it is in value terms in number terms definitely some decline.
Answered
High priority
Volume drop in construction cranes and tower cranes performance
Asked by Adita, Oldbridge Mutual Fund
Management gave specific volume numbers and growth percentage for tower cranes.
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Question
we saw in the constructions and crane segment volume dropped by 23%. But is that the case similar kind of degrowth we have seen in tower cranes?
Management (Mr. Agarwal)
tower cranes has reasonably held up... we have already done close to about 500 machines... by the end of the year we should be somewhere close to 680 to 700 cranes. So that is a 8-9% increase over last year.
Answered
Medium priority
Reason for significant jump in agricultural equipment realizations
Asked by Adita, Oldbridge Mutual Fund
Management explained the product mix shift to higher-priced harvesters.
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Question
in the agricultural equipment we have seen significant jump in realization... reaching almost 9 lakh 90,000 per unit. So what's driving this?
Management (Mr. Lutra)
this is mainly because of the increase in the harvesters... average selling price of a harvester is somewhere about 20-21 to 22 lakh rupees and we had a very significant growth in the harvester this current year.
Answered
High priority
Sustainability of improved gross margins
Asked by Adita, Oldbridge Mutual Fund
Management provided multiple factors and expressed confidence in sustainability.
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Question
we have been posting really healthy gross margins of 33%... what would be the major reason driving it consistently and how sustainable is it going forward?
Management (Mr. Agarwal)
it is a combination of four five things... cost efficiencies... automation... pricing power... I think going forward should be sustainable... with operating leverage playing in... we will get an opportunity to further increase it.
Answered
High priority
How will the long-term revenue target of 6,500-7,000 crore be achieved?
Asked by bank to bal, Asset Managers
Management gave specific growth drivers and volume targets.
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Question
when you talked about the longer-term vision of 29 and 30 and you talked about 6 and a half to 7,000 crores... how does the things add up?
Management (Mr. Agarwal)
over the next 3-4 years this about 9-10,000 cranes will definitely go to 14-15,000 cranes... construction equipment... will easily double up... Tower cranes... more than double... Exports and defense... doubling up... inorganic opportunities...
Answered
Medium priority
Which product drove margin improvement despite stable realizations?
Asked by Mundin Bandari, IFL Capital
Management attributed margin improvement to product mix shift.
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Question
our margin has expanded. So which product is driving that or how that is being done?
Management (Mr. Agarwal)
it's more to do with the product mix... new generation cranes are becoming more popular... higher tonnage cranes are becoming more popular and tower crane again is on a growth...
Answered
Medium priority
Volume of backhoe loaders in Q3 and future outlook
Asked by Siddhhatri Kumar, PMS
Management provided specific Q3 volume and long-term growth potential.
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Question
what would be the volume for backhoe loaders in Q3?
Management (Mr. Agarwal)
In Q3 it should be close to about 200 numbers approximately... we are doing close to about 8-900 units average in this category and it can easily be at least three to four times...
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Current revenue level around 3,300-3,400 crores | ₹3,400 cr | ₹855 cr | Overstated vs filing |
| Construction equipment EBITDA margin close to 20% this quarter | 20% | 18.5% | Overstated vs filing |
| Agricultural equipment EBITDA margin about 4-4.5%, dropped to ~1% | 1% | 18.5% | Understated vs filing |
| Expected EBITDA margin 18-19% including other income, 15% without | 18% | 18.5% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.