Action Construction Equipment Limited (ACE) posted an 82.4% year-on-year surge in consolidated net profit to Rs 164.25 crore for the quarter ended September 30, 2026, against Rs 90.06 crore in the same quarter a year ago, driven partly by a one-time exceptional gain of Rs 50 crore from the slump sale of its heavy cranes business undertaking. On a standalone basis, net profit rose 57% year-on-year to Rs 162.97 crore from Rs 103.87 crore.
Excluding the exceptional item, consolidated profit before tax stood at Rs 166.90 crore, up 34.9% from Rs 123.69 crore in Q2FY26, while standalone profit before tax before exceptional items came in at Rs 165.39 crore, compared with Rs 137.49 crore a year ago. The exceptional gain arose from the transfer of ACE's heavy cranes business to ACE KATO Private Limited, a newly formed joint venture in which the company and Kato Works Co. Ltd. of Japan each hold a 50% stake. The company transferred net assets with a carrying value of Rs 19.70 crore and received equity shares in ACE KATO with a fair value of Rs 119.70 crore, resulting in a gain of Rs 50 crore, representing gains to the extent of the other party's interest in the joint operation. ACE KATO has been classified as a joint operation under Ind AS 111.
Consolidated revenue from operations grew 19.1% to Rs 886.09 crore in Q2FY27 from Rs 744.24 crore in Q2FY26. On a standalone basis, revenue rose 19.2% to Rs 883.52 crore from Rs 741.14 crore. For the six months ended September 30, 2026, consolidated revenue from operations increased 19.7% to Rs 1,671.77 crore from Rs 1,396.32 crore in the corresponding period of the previous year, while standalone half-year revenue stood at Rs 1,665.20 crore against Rs 1,393.08 crore.
On an operating basis, consolidated adjusted EBITDA margin — defined as earnings before finance costs, tax, depreciation and amortisation, excluding other income, as a proportion of revenue from operations — stood at 15.11% in Q2FY27, compared with 14.64% in Q2FY26 and 15.00% in Q1FY27. The standalone operating margin was 14.97% for the quarter, against 14.94% a year ago. For the first half of FY27, consolidated operating margin improved to 15.06% from 14.45% in H1FY26, while standalone H1 operating margin was 14.92% against 14.52%.
Consolidated net profit margin for the quarter, measured as profit after tax as a proportion of total income, was 17.62%, against 11.64% in Q2FY26 and 14.22% in Q1FY27. On a standalone basis, net profit margin was 17.53% in Q2FY27 against 13.28% a year earlier.
Total consolidated expenses for the quarter were Rs 765.32 crore, up from Rs 649.86 crore in Q2FY26, with cost of materials consumed at Rs 641.64 crore against Rs 517.34 crore. Employee benefits expense rose to Rs 42.14 crore from Rs 37.47 crore. Finance costs declined to Rs 4.03 crore from Rs 5.85 crore. Consolidated total assets expanded to Rs 3,759.32 crore as of September 30, 2026, from Rs 3,251.68 crore as of March 31, 2026, with inventories rising to Rs 832.18 crore from Rs 605.40 crore. Current borrowings stood at Rs 143.88 crore compared with Rs 0.11 crore at the end of FY26, partly reflecting commercial paper issuances during the period.
Segment-wise, the Cranes, Material Handling and Construction Equipment division remained the dominant revenue contributor. On a consolidated basis, this segment generated revenue of Rs 790.58 crore in Q2FY27 against Rs 697.11 crore in Q2FY26. For the first half of FY27, consolidated segment revenue from this division was Rs 1,532.95 crore against Rs 1,302.68 crore. Segment results after depreciation for the cranes division came in at Rs 148.16 crore in Q2FY27, compared with Rs 126.43 crore a year ago. The Agriculture Equipment segment reported consolidated segment revenue of Rs 50.47 crore in Q2FY27, against Rs 49.29 crore in Q2FY26, while segment results after depreciation turned negative at negative Rs 3.67 crore from negative Rs 1.27 crore in the prior-year quarter.
On a sequential basis, consolidated revenue from operations grew 12.8% from Rs 785.68 crore in Q1FY27, while net profit improved from Rs 119.49 crore in the preceding quarter. Consolidated basic earnings per share for Q2FY27 stood at Rs 13.80, compared with Rs 7.57 in Q2FY26 and Rs 10.04 in Q1FY27. For the six-month period, consolidated basic EPS was Rs 23.84 against Rs 15.78 in H1FY26.
For the six months ended September 30, 2026, consolidated profit after tax was Rs 283.74 crore, up 51.1% from Rs 187.78 crore in the same period a year ago. Standalone half-year profit after tax was Rs 281.56 crore, against Rs 200.70 crore. Consolidated profit before tax for the half year was Rs 375.32 crore, against Rs 251.41 crore, with the Rs 50 crore exceptional gain included in both the quarter and half-year figures.
The board of directors had earlier recommended a final dividend of Rs 2.00 per equity share of face value Rs 2.00 each, representing 100%, for the financial year ended March 31, 2026. This was approved by shareholders at the Annual General Meeting held on September 18, 2026. Net cash flow from operating activities for the six-month period ended September 30, 2026 was negative Rs 5.46 crore on a standalone basis and negative Rs 9.19 crore on a consolidated basis, as an increase in inventories of Rs 232.72 crore on a standalone basis and Rs 231.52 crore on a consolidated basis, along with income tax payments of Rs 75.15 crore and Rs 76.10 crore, respectively, weighed on operating cash generation despite strong profitability.