1. Opening Hook
While everyone’s betting on electric dreams, ACE quietly kept its cranes grounded—and profitable. The company’s Q2 FY26 was all aboutlifting spirits without lifting numbers. Revenue stayed flat, but margins flexed stronger than a tower crane at a Delhi Metro site.
As the government preaches “Make in India,” ACE is actually doing it—with Japanese JVs, anti-dumping drama, and heavy cranes ready to dethrone their Chinese rivals. The CFO even hinted that fiscal prudence is their new heavy machinery. Buckle up—because this call had more moving parts than one of their pick-and-carry beasts.
2. At a Glance
- Revenue ₹782 Cr (flat YoY):“Soft footing,” says management. More like cautious crawling.
- EBITDA up 6.7% to ₹152 Cr:Margin at 19.4%—lifting efficiency, not just equipment.
- PAT up 12.7% to ₹201 Cr (H1):Profits flexed while revenue took a power nap.
- Crane sales down 18% YoY:Blame monsoons, emission norms, and maybe astrology.
- Export share 4–5%:Still waiting for global markets to notice their horsepower.
- Stock outlook:Investors in “CEV-5” mood—Cautiously Expecting Value.
3. Management’s Key Commentary
“H1 began soft due to emission transition and monsoon delays.”(Rain stopped roads, but not our optimism.)
“Margins expanded 137 basis points despite flat revenue.”(Translation: Fewer cranes, fatter profits 😏)
“Government’s anti-dumping duty on Chinese cranes is a structural positive.”(Finally, revenge for all those cheap imports that made CFOs cry.)
“We’re buying 86 acres of land for future expansion.”(Nothing says confidence like ₹200 Cr in dirt.)
“Defense order of ₹420 Cr deferred due to emission norm NOC.”(Only in India can a forklift wait for paperwork longer than a missile test.)
“Agri segment underperformed; exports to pick up.”(Still trying to convince farmers that cranes are the new tractors.)
“Medium-term goal: ₹6,000 Cr revenue by FY30.”(Because ‘stretch targets’ is literally their business.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Change | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 782 | 782 | Flat | Flat but focused. |
| EBITDA (₹ Cr) | 151.8 | 142.2 | +6.7% | Efficiency > Expansion. |
| EBITDA Margin (%) | 19.4 | 18.0 | +137 bps | Cost discipline flexed. |
| PAT (₹ Cr) | 103.9 | 92.3 | +12.7% | Margins saved the day. |
| Crane & Equip Revenue (₹ Cr) | 694 | 694 | Flat | Still 94% of total. |
| Agri Segment Revenue (₹ Cr) | 47 | 49 | -4% | Harvest delayed. |
| Unit Sales (Nos) | 2,348 | 2,870 | -18% | Volumes went for a monsoon break. |
Takeaway:When volume drops but profit rises, either machines got smarter or accountants did.
5. Analyst Questions
Q:“Will FY26 be a year of de-growth?”A:“Flat-to-single-digit growth. We call that optimism in crane language.”
Q:“Backhoe loader market share?”A:“2.5% now; targeting 10%. It’s a long haul—pun intended.”
Q:“What’s the CAPEX plan for all that cash?”A:“Land, robots, and Japanese JVs. Dividend is just the garnish.”
Q:“Any update on Ghana project?”A:“Parked till geopolitics behaves.”(Basically: Africa’s not calling back yet.)
Q:“Exports still 5%?”A:“Yes, but growing 30% YoY.”(From small to slightly-less-small.)
Q:“Agri business future?”A:“Channel partners weak, tractors strong, patience stronger.”
Q:“Anti-dumping impact?”A:“Chinese cranes face 26–52% duty. Time to reclaim home turf.” 🚧
6. Guidance & Outlook
Management expects FY26 to be “flattish to single-digit growth” – which is corporate forwe’re holding the line till Q4 saves us.H2 will drive 55–60% of annual sales, fueled by:
- Recovery in
