ACE falls 12% after company’s weak Q1 performance on sequential basis

Haryana-based Action Construction Equipment has slumped as much as 12% since it announced results for the first quarter of FY26 after market hours on August 8. The company’s profit and revenue declined on a sequential basis in the June quarter.During the April to June period, the construction equipment makers’ revenue stood at ₹703.2 crore, down 27.5% from ₹969.4 crore recorded in Q4 FY25. Similarly, at the operating level, the company’s earnings before interest, taxes, depreciation, and amortisation fell by 16.4% sequentially to ₹143.9 crore.

However, the margins improved by 271 basis points or 2.7% in the June quarter. The company’s margins stood at 20.46% compared to 17.75% in the Q4 last fiscal.

In a stock exchange filing, the company said the adoption of CEV stage 5 emission norms, applicable to diesel nonroad engines, early onset of monsoons, and global uncertainties impacted its top line during the quarter.“Going ahead, we expect the market to normalise from Q3 onwards,” the company said.

Meanwhile, cost efficiencies and softened commodity prices during the April to June period helped the company improve margins, according to the filing.

In May, the Sorab Agarwal, Executive Director of ACE, told CNBC-TV18 that the company’s cranes, material handling, and construction equipment on one side, and agriculture on the other, is expected to grow at a rate of 14-15%, with material handling and construction equipment likely to outpace cranes within their segment this year.

Shares of the company are trading 6.54% lower at ₹943 on BSE on August 12. The stock has declined as much as 20% in the last month.