Action Construction Equipment Limited (NSE: ACE)

Quick Facts / Company Snapshot

Company Name: Action Construction Equipment Limited
Establishment Year: 1995
Headquarters: Palwal, Haryana, India
Chairman & Managing Director: Mr. Vijay Agarwal
Industry: Construction Equipment & Material Handling
Primary Stock Exchange: National Stock Exchange of India (NSE)
Ticker Symbol: ACE
Total Income (FY 2024-25): ₹3,427.37 Crores (Consolidated)
Revenue from Operations (FY 2024-25): ₹3,327.05 Crores (Consolidated)
EBITDA (FY 2024-25): ₹606.08 Crores
Profit Before Tax (FY 2024-25): ₹549.12 Crores
Profit After Tax (FY 2024-25): ₹409.24 Crores
EBITDA Margin: 17.68%
PAT Margin: 11.94%
Earnings Per Share (Diluted): ₹34.37
Market Leadership: India’s No. 1 Crane Brand (Mobile & Tower Cranes)
Global Footprint: Exports to over 37 countries
Manufacturing Locations: 8 Plants (Dudhola, Faridabad)
Sales & Service Network: 100+ Locations
Employees (Permanent): 1,492

Company Overview

Action Construction Equipment Limited (ACE) is India’s leading material handling and construction equipment manufacturing company, holding a dominant market position in the Mobile Cranes and Tower Cranes segments. Established in 1995, the company has evolved into a multi-product engineering and manufacturing powerhouse, offering a comprehensive portfolio that services the infrastructure, construction, heavy engineering, and industrial sectors. The company prides itself on being “100% Swadeshi,” leveraging indigenous technology and manufacturing capabilities to support India’s infrastructure growth.

The company operates with a clear vision of “Lifting India’s Growth,” a philosophy that is embedded in its strategic operations and product development. Over nearly three decades, ACE has expanded its operational scope from a crane manufacturer to a diversified equipment provider, including road construction machinery, warehousing solutions, and agricultural equipment. The company’s resilience is evident in its ability to outperform industry benchmarks, achieving its highest-ever total income of ₹3,427 Crores in FY 2024-25, marking a 15% growth over the previous year.

ACE’s manufacturing prowess is centered in Haryana, specifically within the industrial hubs of Palwal and Faridabad, where it operates eight state-of-the-art manufacturing units. These facilities are supported by dedicated Research and Development centers that focus on product innovation, cost optimization, and indigenization of technology. The company’s commitment to quality and safety is reinforced by its ISO certifications (9001:2015, 14001:2015, 45001:2018) and rigorous internal control systems.

In addition to its stronghold in the domestic market, where it serves over 16,000 customers, ACE has successfully established a global footprint. The company exports its machinery to over 37 countries across the Middle East, Africa, Asia, and Latin America. With a robust balance sheet, a debt-equity ratio of 0.009, and significant investments in future-ready technologies like CEV-5 compliant engines and electric construction equipment, ACE is strategically positioned to capitalize on India’s ambition to become a developed economy by 2047.

Business Segments

During the financial year ended March 31, 2025, Action Construction Equipment Limited revised its reportable segment structure to align with internal organizational changes and industry benchmarks. The company now reports under two primary business segments.

1. Cranes, Material Handling, and Construction Equipment

This is the flagship segment of the company, contributing the vast majority of its revenue. It encompasses the design, manufacture, and marketing of a wide array of heavy engineering equipment used in infrastructure, mining, logistics, and industrial projects. The operational scope includes Hydraulic Mobile Cranes, Mobile Tower Cranes, Crawler Cranes, Truck Mounted Cranes, Material Handling Equipment like Forklifts, and Road Construction Equipment such as Backhoe Loaders, Compactors, and Motor Graders.

Segment Revenue (External): ₹3,09,708.67 Lakhs
Percentage of Total Revenue: 93.09%
Segment Results (Operating Profit): ₹56,613.96 Lakhs

2. Agriculture Equipment

This segment focuses on the agricultural sector, offering machinery designed to enhance farm mechanization and productivity. The product line primarily includes Tractors and Harvesters (Combine Harvesters). While smaller in revenue contribution compared to the construction segment, it remains a strategic priority given India’s agrarian economy and the government’s focus on modernizing the sector.

Segment Revenue (External): ₹22,996.38 Lakhs
Percentage of Total Revenue: 6.91%
Segment Results (Operating Profit): ₹858.17 Lakhs

History and Evolution

Action Construction Equipment Limited was incorporated on January 13, 1995. The company began its journey with the introduction of hydraulic mobile cranes in India, identifying a critical gap in the material handling sector for infrastructure development.

1995: Incorporation of the company.
2005: The company transitioned into a public limited company.
2006: Listing of equity shares on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
Expansion Phase: Over the years, ACE diversified its portfolio from purely cranes to include road construction equipment, warehousing solutions, and agricultural machinery.
Technological Milestones: The company established dedicated R&D centers in Faridabad and Palwal to drive indigenous innovation.
Recent Developments: In FY 2024-25, the company successfully launched its new CEV-5 compliant equipment range, aligning with global environmental standards. It also secured its largest-ever order for rough terrain forklifts from the defence sector, marking a significant milestone in its diversification into defence logistics.
25th Anniversary: In January 2020, ACE celebrated 25 years of operation, reinforcing its status as India’s No. 1 Crane Brand.

Products and Services

ACE offers a vast range of products categorized under its primary business segments. Below is an in-depth breakdown of its product offerings.

Mobile Cranes

ACE is the undisputed market leader in this category, offering versatility for various lifting applications.

Pick and Carry Cranes: Known for their robust performance and mobility.
NextGen Pick and Carry Cranes: Advanced models featuring higher lifting capacities and better safety features. Specifically, the NX-Series (NX360°, NXT-15T, NXP-15T) represents the next generation of intelligent cranes.
Models: Includes models like SX 150, SX 170, FX 210, and NextGen variants designed for heavy-duty industrial applications.

Tower Cranes

Used extensively in real estate and high-rise construction projects.

Fixed Tower Cranes: For stationary high-rise construction.
Mobile Tower Cranes: Offering quick erection and mobility.
Models: MTC 2418, MTC 3625.

Crawler Cranes

Designed for heavy lifting on soft ground where stability is paramount.

Models: ACX 400, ACX 750. These are essential for large-scale infrastructure projects like power plants and metro construction.

Truck Mounted Cranes

Lorry loader cranes that provide loading and unloading capabilities directly from the truck chassis.

Series: TM Series Lorry Loader Cranes. Specific models include TM 800, TM 600, TM 550, and TM 450.

Rough Terrain Hydraulic Mobile Cranes

Specialized cranes designed to operate in off-road conditions and rough terrains.

Models: 20XW-RT, 40XW, 75XW.

Forklift Trucks

Material handling solutions for warehousing and industrial logistics.

Diesel Forklifts: Heavy-duty variants for outdoor use.
Electric Forklifts: Eco-friendly options for indoor warehousing.
LPG Forklifts: versatile options for varying environments.
Models: AF 300 (Diesel).

Road Construction Equipment

Machinery essential for building roads and highways.

Backhoe Loaders: Versatile machines for digging and loading. Models include AX 130, AX 130 L, AX 124, AX 124 Eco-Master, Phantom 2WD, Phantom 4WD, and AX 124 NS.
Compactors (Vibratory Rollers): For soil and asphalt compaction. Models include ASD 115-STD and ADD 95.
Motor Graders: Used for creating flat surfaces during road grading.

Piling Rigs

Heavy machinery used for foundation work in construction projects.

Models: FP210 (Multi-activity Piling Crane).

Concrete Placing Booms

Equipment for precise concrete pouring in high-rise structures.

Series: ACS Series, ACP Series.

Warehousing Equipment

A complete range of solutions for logistics and inventory management.

Products: Hand Pallet Trucks, Semi-Electric Pallet Trucks, Powered Pallet Trucks, Manual Stackers, Semi-Electric Stackers, Electric Stackers, Electric Straddle Stackers (ESS), Reach Trucks, Dock Levelers, Reach Truck Pro, and Order Pickers.

Agricultural Equipment

Machinery to support the farming sector.

Tractors: A wide range of tractors from 15HP to 90HP. Models include VEER 20, VEER 3000 4WD, DI-350 NG, DI-450 NG, DI-550 NG, DI-4500 4WD, DI-5500 4WD, DI-65 CHETAK, DI-350 Star, DI-450 Star, DI-550 Star, ACE DI-6565, AV TREM IV, DI 6500, DI 7575, DI 7500, and DI 9000.
Harvesters: Combine Harvesters for efficient crop harvesting.
Implements: Rotavators, Front End Loaders, and Front Dozers.

Product Support and Rentals

Product Support: A robust network of service centers providing maintenance, spare parts, and warranty support.
Rentals: Offering equipment on a rental basis to cater to short-term project needs.

Brand Portfolio

ACE operates primarily under its master brand “ACE”, which has become synonymous with cranes in India.

ACE (Master Brand)

The core brand representing “Action Construction Equipment.” It is marketed with the tagline “Lifting India’s Growth” and is recognized as “India’s No. 1 Crane Brand.” The brand equity is built on reliability, cost-effectiveness, and a “100% Swadeshi” (indigenous) identity.

Sub-Brands / Product Series

ACX: Used for Crawler Cranes.
AX / Phantom: Used for Backhoe Loaders.
VEER: Used for compact and specialized tractors.
DI Series: Used for the main range of agricultural tractors.
NXT / NXP / NX Series: Used for NextGen multi-activity cranes.

Geographical Presence

ACE has a widespread presence across India and a growing footprint globally.

Domestic Presence (India)

The company’s operations span across 28 states and 8 union territories in India.

Manufacturing Facilities: 8 plants located in the industrial belts of Faridabad and Palwal (Dudhola), Haryana.
Sales and Service Network: Over 100 locations supported by 13 regional offices.
Revenue Contribution: Sales within India contributed 96.46% of total revenue from operations (₹3,17,973.32 Lakhs) in FY 2024-25.

International Presence

ACE exports its equipment to over 37 countries across the Middle East, Africa, Asia, and Latin America. The company has focused on expanding its export market by introducing products compliant with global standards, such as the CEV-5 norms.

Revenue Contribution: Sales outside India contributed 3.54% of total revenue from operations (₹11,756.59 Lakhs) in FY 2024-25.

Action Construction Equipment Limited Logo

Financial Performance Analysis

ACE delivered robust financial performance in FY 2024-25, continuing its trajectory of growth despite global economic uncertainties.

Consolidated Performance Trends

Total Revenue: Grew by 14.2% to ₹3,327.05 Crores from ₹2,913.80 Crores in the previous year.
EBITDA: Increased by 26.18% to ₹606.08 Crores from ₹480.34 Crores in FY 2023-24.
Profit After Tax (PAT): Rose by 24.69% to ₹409.24 Crores from ₹328.20 Crores in the previous year.
EPS Growth: Diluted EPS increased to ₹34.37 from ₹27.56, reflecting a 24.71% growth.

Standalone Performance

Revenue from Operations: ₹3,320.32 Crores.
Profit Before Tax: ₹543.11 Crores.
Profit After Tax: ₹403.63 Crores.

Profit and Loss Analysis (Consolidated)

The following table summarizes the consolidated profit and loss statement for the year ended March 31, 2025.

Particulars	FY 2024-25 (₹ Crores)	FY 2023-24 (₹ Crores)	YoY Growth %
Revenue from Operations	3,327.05	2,913.80	14.18%
Other Income	100.32	77.10	30.12%
Total Income	3,427.37	2,990.90	14.59%
Expenses
Cost of Materials Consumed	2,248.60	2,073.12	8.46%
Changes in Inventories	24.83	(50.30)	–
Employee Benefits Expense	138.47	120.66	14.76%
Finance Costs	28.65	23.17	23.65%
Depreciation & Amortization	28.31	23.24	21.82%
Other Expenses	399.38	351.84	13.51%
Total Expenses	2,878.25	2,556.96	12.57%
Profit Before Tax (PBT)	549.12	433.94	26.54%
Tax Expense	139.88	105.74	32.29%
Profit After Tax (PAT)	409.24	328.20	24.69%

Key Ratios

EBITDA Margin: 17.68% (Improved by 162 basis points).
PAT Margin: 11.94% (Improved by 97 basis points).
Return on Net Worth: 28.66% (Standalone).
Interest Coverage Ratio: 20.01 times.

Balance Sheet Analysis (Consolidated)

The company maintains a healthy balance sheet with a strong net worth and low leverage.

Particulars	As at March 31, 2025 (₹ Crores)	As at March 31, 2024 (₹ Crores)
ASSETS
Non-Current Assets	1,388.28	896.44
Property, Plant & Equipment	696.70	559.54
Capital Work-in-Progress	27.74	43.64
Investments	542.59	224.53
Other Non-Current Assets	121.25	68.73
Current Assets	1,322.57	1,272.77
Inventories	515.11	553.40
Financial Investments	375.57	369.58
Trade Receivables	264.66	164.31
Cash & Bank Balances	55.47	110.41
Other Current Assets	111.76	75.07
TOTAL ASSETS	2,710.85	2,169.21

EQUITY AND LIABILITIES
Equity	1,616.43	1,231.50
Equity Share Capital	23.82	23.82
Other Equity	1,590.91	1,206.02
Non-Controlling Interest	1.71	1.66
Non-Current Liabilities	12.90	13.15
Current Liabilities	1,081.51	924.57
Borrowings	14.79	3.88
Trade Payables	808.61	687.94
Other Current Liabilities	258.11	232.75
TOTAL EQUITY & LIABILITIES	2,710.85	2,169.21

Cash Flow Analysis (Consolidated)

The company generated healthy cash flows from its operations, allowing for significant investments.

Particulars	FY 2024-25 (₹ Crores)	FY 2023-24 (₹ Crores)
Net Cash from Operating Activities	411.98	433.42
Operating Profit before Working Capital Changes	543.73	444.60
Net Cash Used in Investing Activities	(382.69)	(368.23)
Purchase of Property, Plant & Equipment	(221.00)	(175.05)
Purchase of Investments (Net)	(277.37)	(198.73)
Net Cash Used in Financing Activities	(28.99)	(38.66)
Dividends Paid	(23.80)	(11.91)
Net Increase in Cash & Cash Equivalents	0.64	26.73
Cash & Cash Equivalents at End of Year	48.84	48.21

Board of Directors and Leadership Team

The Board of Directors comprises eight members, with a balanced mix of four Executive Promoter Directors and four Independent Directors, ensuring robust governance.

Executive Directors

Mr. Vijay Agarwal (Chairman & Managing Director): The visionary founder who has led the company since its inception in 1995. With over 54 years of experience, he provides overall strategic direction.
Mrs. Mona Agarwal (Whole-Time Director): Associated with the company since 1995, contributing to its long-term growth.
Mr. Sorab Agarwal (Whole-Time Director): Has over 28 years of experience and is instrumental in driving the company’s marketing and operational strategies.
Mrs. Surbhi Garg (Whole-Time Director): Looks after Administration and HR functions, associated with the company since 2011.

Independent Directors

Mr. Avinash Parkash Gandhi: Independent Director and Chairman of the Audit Committee.
Dr. Divya Singal: Independent Woman Director and Chairman of the CSR Committee.
Mr. Shriniwas Vashisht: Non-Executive Independent Director.
Dr. Jagan Nath Chamber: Non-Executive Independent Director.

Key Managerial Personnel

Mr. Rajan Luthra: Chief Financial Officer (CFO).
Mr. Anil Kumar: Company Secretary & Compliance Officer.

Subsidiaries, Associates, Joint Ventures

ACE has five subsidiary/associate entities as of March 31, 2025.

1. Crane Kraft India Private Limited

Status: Wholly Owned Subsidiary (100% Holding).
Country: India.
Revenue (FY25): ₹44.38 Crores.
Profit After Tax: ₹1.55 Crores.
Profile: Engaged in business operations supporting the parent company’s ecosystem.

2. ACE Emergency Response Service Trust

Status: Trust (100% Holding).
Country: India.
Revenue (FY25): ₹0.00.
Profit After Tax: ₹3.91 Crores.
Profile: Implements the company’s CSR initiatives, specifically focusing on emergency response services.

3. Namo Metals

Status: Partnership Firm (90% Holding).
Country: India.
Revenue (FY25): ₹0.24 Crores.
Profit After Tax: ₹0.13 Crores.

4. SC Forma SA

Status: Subsidiary (89.52% Holding).
Country: Romania.
Status Note: Under Voluntary Liquidation.
Profit After Tax: ₹0.09 Crores.

5. Action Construction Equipment Limited Employees Welfare Trust

Status: Trust (100% Holding).
Country: India.
Profile: Manages the ESOP schemes for employees.

Physical Properties

ACE operates a significant manufacturing infrastructure in Haryana, India.

Manufacturing Plants

Dudhola Link Road, Palwal: The primary manufacturing hub housing multiple units for varied equipment lines.
Jajru Road, Ballabgarh, Faridabad: Houses specialized manufacturing units and R&D centers.
Prithla, Faridabad: Additional manufacturing capacity.

Research & Development Centers

Jajru Road, Faridabad: Dedicated R&D facility accredited by the Ministry of Science and Technology.
Dudhola Link Road, Palwal: Advanced R&D center for product testing and validation.

Corporate & Marketing Offices

Registered Office: Dudhola Link Road, Palwal, Haryana.
Marketing Office: Pinnacle Tower, Surajkund, Faridabad, Haryana.

Segment-wise Performance

Cranes, Material Handling & Construction Equipment Segment

This segment continued to drive the company’s growth.

Revenue: ₹3,097.09 Crores.
Segment Result: ₹566.14 Crores.
Performance: The segment witnessed strong traction due to infrastructure development projects like the Gati Shakti Master Plan and Smart Cities Mission. The introduction of CEV-5 compliant cranes boosted its market positioning.

Agriculture Equipment Segment

Revenue: ₹229.96 Crores.
Segment Result: ₹8.58 Crores.
Performance: While smaller, this segment remains a key diversification area. The company continues to invest in modernizing this portfolio to capture rural demand.

Founders

Mr. Vijay Agarwal is the founder of Action Construction Equipment Limited. A visionary industrialist and philanthropist, he laid the foundation of ACE in 1995 with the objective of providing indigenous, cost-effective lifting solutions for India’s infrastructure needs. Under his leadership spanning over nearly three decades, ACE has grown from a modest crane manufacturer into a multi-national heavy equipment giant. He continues to serve as the Chairman and Managing Director, guiding the company’s strategic vision.

Shareholding Pattern

As of March 31, 2025, the shareholding pattern of ACE is as follows:

Promoters & Promoter Group: 65.41% (7,78,97,463 shares)
- Vijay Agarwal: 28.75%
- Mona Agarwal: 24.65%
- Sorab Agarwal: 6.15%
- Surbhi Garg: 5.82%
Foreign Portfolio Investors (FPIs): 11.58%
Mutual Funds: 0.44%
Insurance Companies: 0.70%
Alternate Investment Funds: 0.82%
Public/Others: 21.05%

Parent Company

Action Construction Equipment Limited does not have a holding or parent company. It is the flagship entity of the group, promoted by Mr. Vijay Agarwal and his family.

Investments and Capital Expenditure Plans

The company has maintained a robust investment strategy to enhance its manufacturing capabilities and R&D.

Capital Expenditure: In FY 2024-25, ACE incurred capital expenditure of approximately ₹221 Crores (Consolidated), primarily towards the purchase of property, plant, and equipment to upgrade facilities and expand capacity.
R&D Spending: The company invested ₹20.63 Crores in Research and Development (Revenue + Capital expenditure), focusing on upgrading engines to BS-V norms, developing electric cranes, and enhancing product efficiency.
Strategic Investments: The company has a significant investment portfolio of over ₹542 Crores in mutual funds, bonds, and alternative investment funds, ensuring liquidity and financial stability.

Future Strategy

ACE’s management has outlined a strategic roadmap focused on:

Infrastructure Capitalization: Leveraging the Indian government’s record ₹11.21 lakh crore capital investment outlay to drive demand for construction equipment.
Product Innovation: Continued focus on R&D to develop eco-friendly, electric, and AI-enabled machinery. The launch of the CEV-5 compliant range is a step in this direction.
Global Expansion: Increasing export revenue by targeting new international markets with its upgraded product portfolio.
Defence Sector: Expanding its presence in the defence sector following the receipt of its largest-ever order for rough terrain forklifts.
Operational Excellence: Implementing cost optimization projects and value engineering to maintain high EBITDA margins.

Key Strengths

Market Leadership: Unrivaled dominance in the Mobile and Tower Crane segments in India.
Diversified Portfolio: A wide range of products de-risking the business from single-sector downturns.
Financial Health: Strong balance sheet with a debt-equity ratio of nearly zero (0.009), high interest coverage ratio (20.01), and substantial cash reserves.
R&D Capabilities: In-house R&D centers recognized by the Ministry of Science and Technology, enabling rapid product adaptation.
Distribution Network: Extensive sales and service network ensuring customer proximity and fast service delivery.

Key Challenges and Risks

Economic Sensitivity: The business is highly correlated with the economic cycle; a slowdown in infrastructure spending could impact revenue.
Commodity Price Volatility: Fluctuations in steel and other raw material prices can impact profit margins.
Regulatory Changes: Stringent environmental norms (like Stage V emission norms) require continuous investment in technology upgrades, increasing compliance costs.
Competition: Intensifying competition from global players and domestic manufacturers may lead to pricing pressures.
Geopolitical Risks: Export operations face risks from global trade tensions and supply chain disruptions.

Conclusion and Strategic Outlook

Action Construction Equipment Limited has demonstrated exceptional resilience and growth in FY 2024-25, achieving record financial milestones. With a strategic focus on innovation, a fortress balance sheet, and a favorable macroeconomic environment driven by India’s infrastructure push, ACE is well-positioned for a multi-year growth cycle. The company’s continued investment in R&D and expansion into defence and export markets suggests a robust strategic outlook, aiming to cement its status not just as a domestic leader, but as a globally respected name in the construction equipment industry.

Frequently Asked Questions (FAQ)

1. What does Action Construction Equipment (ACE) manufacture?

ACE manufactures a wide range of heavy equipment including Mobile Cranes, Tower Cranes, Backhoe Loaders, Road Construction Equipment, Forklifts, and Agricultural Tractors.