Action Const.Eq. Q4 FY26 Results (NSE: ACE)
Signal: Growth reaccelerated
The read
Q4 standalone rev rose 7% YoY but PAT fell 7% due to a sharp swing in other income (positive ₹839 lakh to negative ₹612 lakh, driven by mark-to-market losses on investments). Full-year PAT flat at ₹415 Cr (+1% YoY) despite a 7% revenue decline — margins held on input cost tailwind. Agriculture segment, which had been a drag all year, worsened in Q4; new 'Others' segment (₹77 Cr rev) partly offset. Capex cycle evident with CWIP +75% and D&A +30% — Plant 9/Capex claims remain open.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,029.49 Cr | 7.1% | 20.5% |
| EBIT | ₹156.93 Cr | -3.9% | |
| Net profit | ₹110.91 Cr | -6.5% | |
| EPS | ₹9.32 | -6.5% | |
| EBIT margin | 17.0% |
P&L walk
Revenue grew 7% YoY but PAT fell 7% as other income dropped sharply and D&A rose
Segments
Cranes & material handling (88% of rev) steady with 18.4% segment margin; agriculture segment margin compressed to 3.8% (vs 2.4% Q4FY25 but swung from profit to near-loss sequentially); 'Others' segment (₹7,655 lakh) contributed ₹1,962 lakh profit — likely new revenue line from defense or KATO JV.
Key positives
- Operating margin held at 17% in Q4 despite high depreciation and flat gross margin — cost control via lower employee & other expense % of sales.
- Full-year PAT ₹415 Cr (+1% YoY) on 7% lower revenue — margin resilience from input cost tailwind (RM % rev 69.2% vs 71.3% in FY25).
- Company remains nearly debt-free (borrowings ₹11 lakh) with strong cash generation (operating CFO ₹41,727 lakh covers PAT).
- Capex acceleration with CWIP +75% suggests Plant 9/defence facility on track.
Key concerns
- PAT declined 6.5% YoY in Q4 — driven by negative other income (mark-to-market on investments), a recurring volatility risk.
- Agriculture Equipment segment turned into loss in Q4 (segment result ₹274 lakh vs ₹127 lakh YoY but swung from positive ₹88 lakh in Q3 to negative on sequential basis).
- Full-year revenue declined 1.4% (consolidated) — volume growth absent despite broader construction cycle.
- Dilution risk via ESOP (35,661 new options granted in FY26) — though none vested yet, future exercise could dilute EPS.
Research and educational content only. Not investment advice.