What I Saw When I Looked Into Action Construction Equipment (ACE) — and Why It Left Me Impressed
There’s something deeply calming about a company that doesn’t shout.
That doesn’t chase narratives. That doesn’t ride the hype train.
Just builds.
A few days ago, we explored Sanghvi Movers — a crane rental major. Asset-heavy. Yield-driven. Riding the infra cycle with steel and sweat.
But there’s another kind of crane company.
One that manufactures the lifters. Not rents them.
That’s how I found myself neck-deep in the numbers and machine oil of Action Construction Equipment (ACE).
And honestly, it might be one of the cleanest, most focused execution stories in India’s capital goods space right now.
I Didn’t Want to Like It This Much
I thought it would be just another boring manufacturing story.
Turns out, I was completely wrong.
ACE makes cranes — yes — but it also makes loaders, forklifts, tractors, telehandlers, and vibratory rollers. It supplies to infra, logistics, warehousing, agri, and even the Ministry of Defence.
And the best part?
They do it without drama. No headline-chasing, no over-the-top investor calls. Just clean, old-school execution.
I like that.
The Numbers Pulled Me In
I started with Q3 FY25. The latest quarter.
And then I saw the words: “Highest ever quarterly performance.”
That made me sit up.
• ₹873 Cr in revenue (↑15.7% QoQ)
• ₹160 Cr EBITDA
• ₹107 Cr profit
• 18.2% EBITDA margin
• 12.3% PAT margin
• EPS: ₹9.38
• Volumes: 3,539 units (↑18%)
I wasn’t expecting this kind of profitability in a mid-cap capital goods company.
Margins expanded despite realizations being flat — and that tells me the mix is getting smarter.
But then I stepped back and looked at the 9-month picture. That sealed the deal.
• ₹2,361 Cr in revenue (↑14% YoY)
• ₹428 Cr EBITDA
• ₹285 Cr PAT
• EBITDA margin: 17.7%
• Consistency across Q1, Q2, Q3
What stood out wasn’t just the numbers. It was the discipline behind them.
I Love the Segment Mix — It Shows Where the Future Lies
Here’s the thing: cranes are the backbone.
They form 72% of revenue today.
But the other segments?
That’s where ACE is quietly planting its next bets.
• Construction Equipment (13%) is growing with infra
• Material Handling (6%) is picking up speed — especially with warehouses and logistics demand
• Agri (8%) is flat — but management is patient
That mix gives them both cash flows and optionality.
Exactly the kind of operating structure I look for.
Clean Balance Sheet = Peace of Mind
I’ve seen too many infra-adjacent businesses ruin themselves by chasing growth with leverage.
ACE doesn’t do that.
• Net debt? Virtually zero.
• Working capital? ~8 days.
• ROCE? 39%.
• Operating cash flows? Solid.
You don’t get to 39% ROCE by being lucky.
You get there by building something real, useful, and margin-expanding — consistently.
Here’s What Made Me Sit Up Straight
Three things I didn’t expect — but absolutely loved.
1. Exports Are Quietly Booming
ACE is now CEV-V compliant — which means Europe and the US are fair game.
They already export to 37 countries.
Export revenue jumped from ₹65 Cr (FY21) → ₹270 Cr (9M FY25).
FY26 is the year it explodes.
They didn’t talk about it much. They just did it. That’s my kind of business.
2. Defense Is Real — Not Just a Buzzword
They’re already supplying forklifts to the Ministry of Defence.
A ₹400 Cr pipeline is shaping up.
By FY27, defense could be 10% of ACE’s revenue.
That kind of diversification — with MoD-level trust — says a lot.
3. The KATO JV Might Be the Gamechanger
This one really caught me off guard.
ACE has partnered with Japan’s KATO Works to manufacture premium-grade rough terrain, truck, and crawler cranes.
First production rolls out in Q4 FY26. Full ramp expected by FY27. If that JV works, ACE goes from “India’s crane leader” to a global crane contender.
That’s not a small shift.
And Yes — Capacity Is Already in Place
They’re running at 80% utilization on a ₹5,100 Cr revenue base.
No last-minute plant rush. No delays.
They’ve quietly expanded capacity over the last few years, and they’re ready to scale.
Operating leverage is just waiting to kick in now.
Risks? Sure. But Manageable.
I asked myself: What could mess this up?
Here’s the list:
• Steel price inflation
• Infra delays (post-election lull?)
• Freight disruptions (Red Sea impact, etc.)
• Chinese crane dumping (they’ve filed with DGTR)
But I trust the management. I listened to the concalls — there’s humility, clarity, and control.
No wild guidance. Just execution.
The Moment It Clicked
Here’s when it all came together for me:
I was going through their Q3 investor presentation, and there was a slide that said:
“World-class performance with Indian value engineering.”
It wasn’t flashy. But it was true.
And for a mid-cap manufacturing business to under-promise in this market? That earns my respect.
The Shikshan Nivesh Take
ACE isn’t a bet on next quarter.
It’s a business that’s been slow-cooking a real India growth story — brick by brick, machine by machine.
This company builds the cranes.
The loaders.
The platforms.
The literal foundation for India’s infrastructure build-out.
If you believe India is going to build, connect, ship, lift, and grow, then you need to be looking at the companies behind that growth.
ACE is one of them.
And if you’re not watching it yet, I hope this gave you a reason to start.
✍️ Written by Shubham
📍 Research & Insights by Shikshan Nivesh
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Disclaimer: This article is for informational purposes only. It is not investment advice. Please do your own research or speak with a financial advisor before making any investment decisions.