Action Const.Eq. Q1 FY27 Results (NSE: ACE)
Signal: Growth reaccelerated
The read
Q1FY27: Revenue +20.5% YoY, PAT +22.3% YoY; operating margin expanded 76bps YoY but contracted 175bps QoQ from Q4FY26's high; debt-free balance sheet; strong interest coverage. The cranes segment remains the growth engine.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹785.68 Cr | 20.5% | -23.7% |
| EBIT | ₹163.36 Cr | 20.1% | |
| Net profit | ₹119.49 Cr | 22.3% | |
| EPS | ₹10.04 | 22.3% | |
| EBIT margin | 15.00% |
P&L walk
Revenue grew 20.5% YoY driven by strong cranes segment (+22.6%); operating margin expanded 76bps YoY to 15.00% despite higher raw material cost (cost of materials consumed/revenue up 670bps), aided by employee cost leverage (down 58bps) and lower finance costs; PAT grew 22.3% YoY.
Segments
Cranes segment drove performance with 22.6% YoY revenue growth and 25.8% YoY segment result growth; Agriculture segment revenue declined 6.4% but segment result improved sharply from ₹18 lakh to ₹185 lakh; Others segment (including new subsidiary ACE KATO) reported a small loss of ₹233 lakh.
Key positives
- Revenue grew 20.5% YoY, driven by cranes segment (+22.6% YoY).
- PAT grew 22.3% YoY, with operating margin expanding 76bps YoY to 15.00%.
- Employee cost leverage: employee benefits grew only 7.9% vs revenue 20.5%.
- Finance costs declined 40% YoY, aiding profitability.
- Debt-free (D/E 0.00) with strong interest coverage of 33.07x.
Key concerns
- Operating margin contracted 175bps QoQ from Q4FY26's 16.75% to 15.00%.
- Cost of materials consumed as % of revenue rose 670bps YoY to 76.3%, indicating input cost pressure.
- Agriculture segment revenue declined 6.4% YoY, though profitability improved.
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