ACE Construction to invest Rs 400–450 crore as demand outlook improves

The company, which reported a strong FY25 with revenue of ₹3,427 crore which is up 15% year-on-year and EBITDA of ₹606 crore, said growth in FY26 remained resilient despite industry expansion slowing to around 3%. Volumes were supported by sustained infrastructure activity across roads, railways and logistics, even as broader demand moderated.

“We see demand conditions for FY27 shaping up materially stronger than FY26,” said Manish Mathur. “We remain bullish about the second half of FY27, which we expect to be stronger as project execution accelerates.”

The outlook is underpinned by continued government spending, with public capex pegged at ₹12.2 trillion for FY27 and ₹11.21 lakh crore already driving demand visibility across key infrastructure segments. ACE expects cranes, material handling and defence equipment to lead growth, with backhoe loaders and crawler cranes among the fastest-growing categories.

Margins likely to remain stable

Margins are likely to remain stable to marginally higher, supported by operating leverage and a favourable product mix. “Higher-tonnage cranes and value-added equipment are helping improve realisations, while localisation and cost optimisation are mitigating commodity volatility,” Mathur said.

ACE continues to dominate the domestic crane market, with over 63% share in mobile cranes, around 60% in tower cranes and up to 80% in self-erecting tower cranes. The company is also looking to scale its forklift business from around 19% market share to 25% over the next few years.

To support growth, ACE is investing ₹400–450 crore in a new manufacturing facility in Haryana, which will expand crane production capacity. Its existing integrated manufacturing setup in Faridabad has an annual capacity of about 27,000 units, supporting revenues of over ₹5,000 crore, with scope to scale up to ₹6,000 crore with incremental investments.

Exports, though currently accounting for 4–5% of revenue, are growing at nearly 30% year-on-year. The company aims to increase the share of exports and defence to 15–20% by FY30, aided by its presence in over 42 countries and a joint venture with Japan’s KATO Works.

While geopolitical tensions and global supply chain risks remain a concern, ACE said its largely domestic business accounting for about 90% of revenue provides resilience. “We are accelerating localisation and diversifying sourcing to mitigate risks, while maintaining operational flexibility,” Mathur added.

Over the medium term, ACE is targeting revenues of ₹6,000–6,200 crore by FY30, betting on sustained infrastructure spending, rising mechanisation and increasing adoption of electric and technology-enabled equipment.