Sterling Tools Limited Secures Credit Rating Reaffirmation from ICRA

Sterling Tools Limited , a prominent player in the industrial fasteners sector, has received a reaffirmation of its credit ratings from ICRA Limited, one of India's leading credit rating agencies. The ratings, announced on November 10, 2025, cover various financial instruments totaling Rs. 204.19 crore.

Rating Details

ICRA has reaffirmed the following ratings for Sterling Tools Limited:

Instrument	Rated Amount (Rs. crore)	Rating	Action
Short-term Unallocated limits	25.63	[ICRA]A1+	Reaffirmed
Short-term Non-fund based Others	1.64	[ICRA]A1+	Reaffirmed
Long-term Fund-based Cash credit	144.00	[ICRA]AA- (Stable)	Reaffirmed; Outlook revised from Positive
Long-term Fund-based Term loan	32.92	[ICRA]AA- (Stable)	Reaffirmed; Outlook revised from Positive

Rating Implications

The reaffirmation of [ICRA]A1+ for short-term instruments indicates the highest-credit-quality rating assigned by ICRA for short-term debt instruments. This rating suggests that Sterling Tools Limited has a very strong capacity for timely payment of its short-term financial obligations.

For long-term instruments, the [ICRA]AA- rating denotes a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

Outlook Revision

While reaffirming the long-term ratings, ICRA has revised the outlook from 'Positive' to 'Stable'. This change in outlook might reflect ICRA's view on the company's near to medium-term performance expectations.

Breakdown of Rated Facilities

The rating exercise covers various banking facilities:

Long-Term Facilities:
- Term Loans: Rs. 32.92 crore
- Cash Credit: Rs. 144.00 crore
Short-Term Facilities:
- Non-Fund Based Facilities: Rs. 1.64 crore
- Unallocated Limits: Rs. 25.63 crore

Company Profile

Sterling Tools Limited, established in 1979, is a leading manufacturer of high tensile cold forged fasteners. The company primarily caters to the automotive OEM segment and has a strong presence in both domestic and international markets.

Market Implications

The reaffirmation of high credit ratings may positively impact Sterling Tools Limited's financial flexibility and could potentially lead to favorable borrowing terms. However, investors and stakeholders should note the revision in outlook from 'Positive' to 'Stable' for long-term instruments, which may indicate a moderation in the company's growth prospects or financial metrics as perceived by ICRA.

Investors are advised to conduct their own research and consider multiple factors before making investment decisions based on credit ratings alone.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.73%	-6.64%	-12.27%	-12.57%	-54.96%	+47.20%

Sterling Tools has announced a significant rebranding of its subsidiary, Sterling Gtake, to Sterling E-Mobility Solutions Limited. This strategic move marks a pivotal shift in the company's focus towards becoming a comprehensive provider of electric vehicle (EV) technologies.

Strategic Rebranding and Expansion

The name change reflects Sterling's expanding portfolio and its commitment to delivering integrated solutions for EV powertrains and power electronics. This transformation underscores the company's vision to lead India's transition to sustainable mobility.

Anil Aggarwal, Chairman of Sterling Tools Limited, stated, "We are proud to begin this new chapter as Sterling E-Mobility Solutions Limited. This rebranding reflects our commitment to delivering integrated EV solutions powered by global innovation and local expertise."

Key Partnerships and Technology Licensing

Sterling has been actively forging partnerships to enhance its technological capabilities:

Date	Partner	Technology
May 2025	Advanced Electric Machines (UK)	Magnet-free motors
September 2025	Landworld Technology Co. Ltd. (China)	On-board chargers and DC/DC converters

These collaborations are part of Sterling's broader strategy to offer localized, high-performance solutions tailored to the Indian EV market.

Continued Partnership with Gtake

It's important to note that Sterling's exclusive relationship with Jiangsu Gtake Electric Co., Ltd. for the Indian market remains strong and unchanged. This partnership continues to flourish, with multiple products being developed by Gtake and localized by Sterling to meet domestic requirements.

Product Branding

Sterling's product nameplates will now reflect its diverse technology collaborations, including those with Gtake, AEM, and Landworld, reinforcing its commitment to transparency and innovation in the EV sector.

Company Background

Sterling Tools Limited, incorporated in 1979, has a strong foundation in manufacturing high-tensile, cold-forged automotive fasteners. The company caters to various segments including passenger vehicles, two-wheelers, commercial vehicles, agri-equipment, and construction equipment.

The rebranding of its subsidiary to Sterling E-Mobility Solutions Limited signifies a strategic expansion into the growing EV market, positioning the company to capitalize on the shift towards sustainable transportation solutions in India.

As the Indian automotive industry continues its transition towards electrification, Sterling Tools Limited appears to be positioning itself as a key player in the EV technology space, leveraging both global partnerships and local expertise.