ACE Achieves Record-High Revenue & Profit in Q3 FY25 with 16.6% YoY Growth
Action Construction Equipment (ACE) posted its highest-ever quarterly revenue and profit in Q3 FY25, with total income rising 16.6% year-on-year.
On ACE’s performance, Executive Director Sorab Agarwal shared that with a continued focus on customer centricity, execution, and agility in operations, ACE is on a trajectory of predictable and sustained high performance. He highlighted that the company’s execution rigor was evident in its best-ever quarterly performance.Furthermore, in the recently announced Union Budget 2025-26, the Government of India has sustained its infrastructure focus, with capital expenditure estimated to remain above 3% of GDP for the third consecutive year. Productive capex to create infrastructure assets is crucial for enhancing productivity, driving economic growth, improving global competitiveness, and accelerating technological innovation in the country.
Financial Performance
On a standalone basis, operational revenue grew by 15.93% year-on-year, increasing from ₹753.15 crores to ₹873.10 crores, marking ACE’s highest-ever quarterly revenue. The company’s EBITDA grew by 27.40% to ₹160.38 crores, compared to ₹125.89 crores in the corresponding quarter last year. EBITDA margins expanded by 154 basis points to 17.76%.
Profit Before Tax (PBT) increased by 26.49% to ₹144.93 crores from ₹114.58 crores, standing at 16.05%. Profit After Tax (PAT) grew by 21.05% to ₹107.15 crores from ₹88.52 crores, standing at 11.87%. The PBT and PAT margins expanded by 129 basis points and 46 basis points, respectively, on a year-on-year basis. We are delighted to share that these are the highest-ever quarterly revenue, EBITDA, PBT, and PAT figures in the company’s history.
Margin expansion was driven by operating leverage, an improved product mix with better price realizations, efficient cost control measures, and favorable commodity prices.
Segmental Performance
ACE sustained its growth momentum across all operating segments.
- Cranes, Material Handling & Construction Equipment Segment: The company registered consolidated revenue of ₹795.73 crores in the quarter, compared to ₹690.79 crores in Q3 FY24, reflecting a 15.19% growth. Sales increased to 3,539 units, up 17.92% year-on-year. Margins expanded by 375 basis points year-on-year to ₹154.38 crores, compared to ₹108.10 crores, recording a 42.81% growth.
- Agri Equipment Division: The division registered revenue of ₹77.37 crores with a 4.73% margin. With adequate water reservoir levels and the government’s focus on agricultural productivity, ACE expects farm mechanization to continue driving demand in this segment.
For the nine months ended FY25, operational revenue grew by 13.75% year-on-year to ₹2,361.07 crores. EBITDA increased by 30% year-on-year to ₹428.07 crores. PBT rose by 27.37% to ₹382.61 crores, while PAT grew by 24.29% to ₹285.23 crores. The EBITDA margin expanded by 202 basis points to 17.46%, PBT by 151 basis points to 15.60%, and PAT by 86 basis points to 11.63%.
The Honorable Finance Minister has presented the Union Budget 2025-26, outlining a realistic and inclusive vision for the nation. A combination of judicious and bold policy moves, while maintaining fiscal discipline, has laid a strong foundation for a “Viksit Bharat.” The share of capital expenditure outlay in the total budget has been increased to 22.1% in FY26 (BE) from 15.6% in FY22. The government’s focus on infrastructure, manufacturing, power, logistics, and housing sector development bodes well for ACE.
