Action Construction Equipment Ltd is engaged in the business of manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, material handling equipment like forklifts, road construction equipment like backhoe loaders, compactors, motor graders, and agriculture equipment like tractors, harvesters, rotavators, etc. It was incorporated in 1995 and concluded its IPO in 2006. It went public in 2006 when its Equity Shares were listed on the Bombay Stock Exchange and National Stock Exchange of India.
The company operates as a comprehensive construction equipment manufacturer, serving diverse sectors including infrastructure development, industrial projects, and agricultural mechanization. The Company operates through four segments: cranes segment, construction equipment segment, material handling segment, and agri equipment segment. The Company has manufacturing facilities at Haryana.
Action Construction Equipment has established itself as a dominant player in the Indian construction equipment industry. The company is the world's largest Pick & Carry crane manufacturer with a 63%+ market share in the Mobile cranes segment in India and a 60%+ market share in the Tower Cranes segment domestically. It is also India's leading Forklift Manufacturer with a 19% market share and captured a 10%+ market share for tractors in Assam.
The company's equipment finds extensive application across multiple sectors. Action Construction equipment are used in industrial sectors, including infrastructure construction, road construction, power projects, ports, metro rails, dams, shipyards, steel industry, engineering industry, coal mining, oil industry, chemical and fertilizer plants, railways, and defense. This diversified end-user base provides stability and growth opportunities across economic cycles.
Action Construction Equipment has a Market Capitalization of ₹14,147 Crore (down -20.4% in 1 year), a Revenue of ₹3,327 Crore, and a Profit of ₹409 Crore. The stock is trading at 8.76 times its book value, and Promoter Holding: 65.4%.
For the first quarter of FY25, Action Construction Equipment achieved its best-ever Q1 performance in FY '25 with operational revenues rising by 12.82% to INR 734 Crore. The EBITDA margin expanded by 212 basis points to 17.11%, with EBITDA growing over 28% to INR 125.5 Crore. Profit Before Tax (PBT) grew by 24.87%, and Profit After Tax (PAT) increased by 24.46%.
The company's performance in Q1 FY25 showed strong momentum across segments. Action Construction Equipment Ltd on Wednesday reported a 24% rise in consolidated profit after tax (PAT) at ₹84.57 Crore in the April-June quarter of this financial year, mainly on account of higher income. The total income also increased to ₹761.81 Crore, up 14% from ₹667.85 Crore a year ago.
The company garnered a revenue of ₹690.67 Crore from the cranes, construction equipment, and material handling segment, while its agri-equipment division earned a revenue of ₹42.96 Crore. Both the revenue and volumes are up by 20% year-on-year.
For the full year FY25, net profit rose 24.70% to ₹409.22 Crore in the year ended March 2025, as against ₹328.16 Crore during the previous year ended March 2024. Sales rose 14.97% to ₹960.99 Crore in the quarter ended March 2025, as against ₹835.84 Crore during the previous quarter ended March 2024.
- Revenue (Q4 FY25): ₹960.99 Crore
- Net Profit (Q4 FY25): ₹118.56 Crore
- Annual Revenue Growth: An annual revenue growth of 36% is outstanding.
- Return on Equity: ROE of 26% is exceptional.
- Debt Position: Company is almost debt-free and has a strong balance sheet, enabling it to report stable earnings growth across business cycles.
Despite the general elections slowing business momentum, the company remains optimistic, projecting a 15-20% annual growth and maintaining a sustainable 16-17% EBITDA margin. A significant joint venture with Kato Works is expected to boost medium and large-sized crane production.
The company has been expanding its product portfolio and market reach. In 2015-2016, ACE launched new products, such as skid loader wheel-based harvesters, and introduced smart features to its existing product range. Today, the company has expanded its operations internationally to the Asia-Pacific region, parts of Africa, and Latin America regions.
The company has secured important orders from the defense sector. Action Construction Equipment (ACE) added 1.93% after the company announced that it has been awarded with an order for supplying forklifts and cranes from the Ministry of Defence (MoD). The company would be supplying 285 numbers for special forklifts and 6 numbers of rough terrain cranes with 30-tonne Lifting capacity to MoD.
Action Construction Equipment announced that the Board of Directors of the Company at its meeting held on May 26, 2025, inter alia, have recommended a final dividend of ₹2 per equity Share (i.e., 100%), subject to the approval of the shareholders. In the quarter ending March 2024, Action Construction Equipment Ltd declared a dividend of ₹2, translating to a dividend yield of 0.26%.
The company maintains strong corporate governance with Chairperson Name: Vijay Agarwal leading the organization. Promoter Holding: 65.4% indicates strong promoter commitment to the business.
Action Construction Equipment continues to leverage India's infrastructure development story while maintaining its leadership position in the construction equipment industry. The company's debt-free status, strong market position, and diversified product portfolio position it well for sustained growth in the evolving construction and infrastructure landscape.
