ACE Construction Equipment targets 15% of revenue from exports in 2-3 years

Action Construction Equipment (ACE) expects exports to contribute around 15% of its revenue within the next two to three years, as the construction equipment maker expands into new overseas markets.

Exports currently account for around 7-8% of ACE's revenue in H1 FY27, up from 5% of total revenue in FY26. Executive Director Sorab Agarwal said the company could take the export contribution even higher over the longer term.

ACE expands beyond traditional export markets

ACE has historically focused on markets such as Africa, Latin America and SAARC countries. The company is now looking at opportunities in North America, Australia and Europe, while also working on entering Mexico.

Exports from Africa and South America are already showing growth. ACE has also been developing markets in Saudi Arabia and the UAE, although shipping disruptions linked to the ongoing West Asian conflict have delayed some consignments.

According to Agarwal, some initial stock orders for Saudi distributors had been ready since March but could not be shipped because of disruptions to shipping routes. The company has since redirected some export efforts towards other markets.

Revenue and profit in FY26

ACE reported consolidated revenue of ₹3,280 crore in FY26, down 1.4% year-on-year. However, profit after tax increased 1.4% to ₹415 crore.

The company had initially expected exports to contribute a higher share of revenue in H1 FY27. Agarwal said the disruption in West Asia may have reduced the export contribution by around 2-3 percentage points, with the company potentially reaching 8-10% instead of the current 7-8%.

ACE considers acquisitions in equipment businesses

Alongside export expansion, ACE is looking at inorganic growth over the next one to two years.

The company is evaluating businesses connected to its existing areas of expertise. Potential areas include infrastructure, manufacturing, metal handling and defence, as well as hydraulic and electrical equipment.

Agarwal said ACE would focus on businesses where it already has domain knowledge rather than entering unrelated sectors.

ACE seeks protection against Chinese imports

The company is also seeking stronger protection for Indian construction equipment manufacturers against low-priced Chinese imports.

Agarwal said the Directorate General of Trade Remedies (DGTR) had recommended anti-dumping duties of around 45-50% for certain crane categories. According to him, these recommendations have not yet been implemented by the Ministry of Finance.

He also said recommendations covering around 30-35 anti-dumping cases across different sectors have remained unimplemented for several months.

Domestic demand expected to improve

ACE said domestic construction equipment demand has improved after a subdued first quarter of FY27. Demand typically weakens during the monsoon and improves from August onwards.

Infrastructure and manufacturing account for around 80-85% of ACE's revenue, making activity in these sectors important for the company's domestic business.

ACE sold around 7,200 pick-and-carry cranes in FY26, while other products contributed another 2,000-3,000 machines. The company expects domestic volumes to grow 10-12% in FY27, with larger machine sales and price increases also supporting revenue growth.

What to watch

ACE's export contribution, progress in new international markets, domestic equipment demand and potential acquisitions will remain important areas to watch as the company works towards increasing the overseas share of its revenue.