Action Construction Equipment Limited profit rises to Rs 162.97 crore

Action Construction Equipment Limited reported standalone profit after tax of Rs 162.97 crore for the quarter ended 30 September 2026, up from Rs 118.59 crore in the preceding quarter, as its cranes, material handling and construction equipment segment delivered Rs 147 crore of segment profit; agriculture recorded a Rs 3.67 crore loss.

What drove ACE's September-quarter profit increase?

ACE's higher reported profit reflected growth in its core segment result and a Rs 50 crore exceptional gain on the Heavy Cranes business transfer. Standalone profit before tax was Rs 215.39 crore for the quarter ended 30 September 2026, compared with Rs 156.79 crore in the quarter ended 30 June 2026 and Rs 137.49 crore a year earlier.

Profit before exceptional items and tax was Rs 165.39 crore in the September quarter, compared with Rs 156.79 crore in June 2026 and Rs 137.49 crore in September 2025. This means the Rs 50 crore exceptional item accounted for a substantial part of the sequential increase in reported pre-tax profit, while profit before exceptional items also increased by Rs 8.60 crore from the June quarter.

The exceptional gain followed ACE's completion of the Heavy Cranes business undertaking transfer to ACE KATO Private Limited during the September 2026 quarter. ACE and Kato Works Co., Ltd., Japan each hold 50% in ACE KATO, which the Company classifies as a joint operation under Indian Accounting Standard 111, or Ind AS 111. ACE transferred net assets with a carrying value of Rs 19.70 crore and received equity shares with a fair value of Rs 119.70 crore.

Standalone revenue from operations was Rs 883.52 crore, compared with Rs 781.68 crore in June 2026 and Rs 741.14 crore in September 2025. Tax expense rose to Rs 52.42 crore from Rs 38.20 crore sequentially, leaving profit after tax of Rs 162.97 crore. The Board approved the unaudited results on 12 November 2026, and the statutory auditors issued an unmodified limited-review conclusion.

How did ACE's operating segments perform in September 2026?

ACE's cranes, material handling and construction equipment segment was the largest contributor, reporting Rs 788.01 crore of revenue and Rs 147 crore of segment result after depreciation and amortisation. Segment revenue was Rs 738.37 crore in June 2026 and Rs 694.01 crore in September 2025, while segment result was Rs 134.09 crore and Rs 126.03 crore, respectively.

The core segment produced nearly all of the Rs 154.43 crore total standalone segment result before other income, finance costs and other unallocable expenditure. Its segment result increased by Rs 12.91 crore sequentially, compared with a Rs 2.08 crore sequential increase in the total segment result, because agriculture moved into loss and the Others segment improved from a June loss.

The Others segment reported Rs 48.02 crore of revenue and Rs 11.10 crore of segment result in the September quarter, versus Rs 0.64 crore of revenue and a Rs 2.33 crore loss in June 2026. The comparable September 2025 quarter reported no revenue or result for Others, although the segment had reported Rs 76.55 crore revenue and Rs 19.62 crore segment result for the year ended 31 March 2026.

Consolidated results broadly tracked the standalone outcome. Consolidated revenue from operations was Rs 886.09 crore and profit after tax was Rs 164.25 crore in the September 2026 quarter, compared with Rs 785.68 crore and Rs 119.49 crore, respectively, in the June 2026 quarter. The consolidated core segment result was Rs 148.16 crore, while agriculture recorded the same Rs 3.67 crore loss.

Why did ACE's agriculture equipment segment report a loss?

ACE's agriculture equipment segment recorded a Rs 3.67 crore loss after depreciation and amortisation in the quarter ended 30 September 2026, reversing a Rs 1.85 crore profit in the June quarter. The segment had also posted a Rs 1.27 crore loss in the quarter ended 30 September 2025, while revenue was Rs 50.47 crore in September 2026 against Rs 45.73 crore in June 2026 and Rs 49.29 crore a year earlier.

The disclosed cost and inventory lines show a different movement from the revenue trend. Agriculture cost of materials consumed was Rs 6.13 crore in September 2026, compared with Rs 20.50 crore in June 2026 and Rs 48.17 crore a year earlier. Changes in finished-goods and work-in-progress inventory were Rs 30.31 crore in September, compared with Rs 9.49 crore in June and negative Rs 12.76 crore in September 2025.

For the six months ended 30 September 2026, agriculture revenue was Rs 96.20 crore and the segment result was a loss of Rs 1.82 crore. In the corresponding six months of 2025, revenue was Rs 98.14 crore and the loss was Rs 1.09 crore. Agriculture segment assets stood at Rs 167.27 crore on 30 September 2026, down from Rs 231.12 crore a year earlier, while liabilities declined to Rs 91.16 crore from Rs 121.08 crore.

What changed in ACE's inventory, borrowings and cash flow?

ACE's standalone total assets rose to Rs 3,743.14 crore at 30 September 2026 from Rs 3,235.99 crore at 31 March 2026. Inventories increased to Rs 831.37 crore from Rs 603.38 crore, while current borrowings rose to Rs 143.88 crore from Rs 0.11 crore. The current ratio was 1.31 times at 30 September 2026, compared with 1.34 times at the March 2026 year-end.

The first-half cash-flow statement showed net cash used in operating activities of Rs 5.46 crore, compared with net cash generated of Rs 6.39 crore in the six months ended 30 September 2025. Working-capital movements included a Rs 232.72 crore inventory increase and a Rs 95.36 crore reduction in trade payables. Cash and cash equivalents ended the half year at Rs 49.82 crore, down from Rs 62.64 crore at the start of the financial year.

ACE issued Rs 35 crore of commercial paper with a three-month tenure during the September 2026 quarter and Rs 70 crore during the six months ended 30 September 2026. Of the first-half issuance, Rs 35 crore had matured by 30 September 2026. Net cash generated from financing activities was Rs 139.46 crore, compared with Rs 85.95 crore in the comparable 2025 period, while net cash used in investing activities was Rs 146.82 crore.

Conclusion

ACE's September-quarter performance was led by the cranes, material handling and construction equipment business, which delivered Rs 147 crore of segment result on Rs 788.01 crore revenue. The Others segment added Rs 11.10 crore of result after a June loss, while agriculture moved from a Rs 1.85 crore June profit to a Rs 3.67 crore loss. Reported standalone profit after tax of Rs 162.97 crore also included the Rs 50 crore gain from the Heavy Cranes business transfer.

The next disclosures should show how ACE KATO contributes after the September 2026 transfer and whether agriculture moves from its first-half Rs 1.82 crore loss. Inventory and funding movements also remain relevant: inventories were Rs 831.37 crore and current borrowings were Rs 143.88 crore at 30 September 2026, while Rs 35 crore of the Rs 70 crore commercial paper issued in the first half had matured by the reporting date.