Sterling Tools Limited has announced its Q3FY26 financial performance showing mixed results with EBITDA declining year-over-year while margins improved. The company reported EBITDA of ₹226M compared to ₹268M in the corresponding quarter of the previous year, though EBITDA margin expanded to 10.96% from 10.28%.

Q3FY26 Financial Performance

The company's third quarter performance for the period ended December 31, 2025, presents contrasting metrics across different financial parameters. While EBITDA showed a decline, the improvement in EBITDA margin indicates better operational efficiency.

The standalone operations demonstrated robust growth with revenue from operations increasing by 17.53% and net profit growing by 14.32%. However, consolidated results showed revenue declining from ₹2.6 billion to ₹2.06 billion, with net profit dropping significantly from ₹136 million to ₹16 million.

Leadership Continuity and Governance

The Board of Directors approved significant leadership re-appointments during their meeting held on February 3, 2026. Both key executive positions have been recommended for five-year extensions subject to shareholder approval.

ESOP Implementation and Capital Structure

The company implemented its Employee Stock Options Plan with the allotment of 1,60,108 equity shares. This strategic move increased the paid-up share capital and demonstrates the company's commitment to employee participation in growth.

The nine-month standalone performance showed revenue from operations of ₹51,139.81 lakhs compared to ₹48,142.27 lakhs previously, with net profit reaching ₹4,035.16 lakhs against ₹3,160.81 lakhs in the corresponding period. The company also reconstituted its Corporate Social Responsibility Committee effective February 4, 2026, with enhanced governance structure.

Sterling Tools has announced a strategic partnership with China's Minieye to deliver advanced driver assistance systems (ADAS) and driver monitoring solutions specifically designed for the Indian automotive market. The collaboration is strategically aligned with India's mandatory ADAS and Driver Drowsiness and Attention Warning Systems (DDAWS) regulations effective January 1, 2027.

Strategic Partnership Details

The collaboration between Sterling Tools and Minieye represents a significant step in bringing advanced automotive safety technologies to Indian consumers. Sterling Tools will support application engineering and on-ground adaptation of Minieye's ADAS and Driver Monitoring Systems for the Indian market, focusing on engineering and perception adaptation for Indian driving environments, road conditions, and use cases.

Technology Solutions and Market Positioning

The partnership will focus on delivering comprehensive safety solutions designed to enhance vehicle safety in Indian conditions. The collaboration covers the adaptation of systems including Autonomous Emergency Braking (AEB), Forward Collision Warning (FCW), Lane Departure Warning Systems (LDWS), Driver Drowsiness and Attention Warning Systems (DDAWS), and Blind Spot Monitoring.

Anish Agarwal, Director, Sterling Tools Limited, said, "Road safety and regulatory compliance are becoming increasingly important across both commercial and passenger vehicle segments in India. This collaboration allows us to work with a global technology partner to address the growing need for driver assistance and monitoring systems that are engineered for Indian operating conditions."

Dr. Liu Guoqing, Founder and Chairman of MINIEYE, said, "Partnering with Sterling Tools marks a vital step in bringing intelligent driving to India, leveraging Sterling Tools local expertise to translate technology into production-ready applications that enhance vehicle safety."

Company Background and Market Context

Sterling Tools continues to strengthen its position as a technology-led automotive partner through sustained investments in advanced engineering and manufacturing capabilities. The company is expanding its portfolio across next-generation automotive technologies, including EV power electronics, high-voltage DC contactors and relays, and rare-earth-magnet-free motor solutions.

Minieye brings global experience in intelligent driving and in-cabin technologies, with solutions compliant with EU General Safety Regulation (GSR) requirements and supported by Automotive SPICE V4.0 CL3 certification. Its systems are deployed across multiple international markets, including Europe, the UK, Australia, Southeast Asia, the Middle East, and South America.

Stock Performance

Sterling Tools Limited shares were trading at ₹251.90, up by ₹1.05 or 0.42% on the NSE during afternoon trading session.