Sterling Tools Limited , a leading manufacturer of high-tensile fasteners, has reported its financial results for the second quarter, showcasing steady performance in its core business while making significant strides in the electric vehicle (EV) segment.

Q2 Financial Highlights

The company's standalone fastener business reported a total income of INR 172.20 crores in Q2, with EBITDA margins remaining flat compared to the same period last year. Notably, Sterling Tools received an exceptional compensation of INR 9.50 crores from Delhi Metro Rail Corporation for land acquisition, including interest of INR 6.22 crores.

Expansion in EV Business

Sterling Tools is making significant moves to strengthen its position in the growing electric vehicle market:

1. New Partnerships: The company has expanded its EV business through partnerships with Landworld Technology for onboard chargers and DC/DC converters.

2. Subsidiary Growth: Sterling Tech Mobility Limited (STML), a subsidiary, plans to begin commercial production of High Voltage DC (HVDC) contactors and relays in December 2025.

3. Revenue Potential: The HVDC contactor and relay business is projected to have a revenue potential of INR 200.00 crores within the next 5 years.

Strategic Rebranding

Sterling Gtake Mobility Limited has been rebranded as Sterling E Mobility Solutions Limited (SEM). This new identity reflects the company's evolution into a comprehensive provider of advanced EV powertrain and power electronic solutions.

Expanded Product Portfolio

SEM has broadened its product range to include:

• Integrated motors and Motor Control Units (MCUs)
• Rare earth magnet-free motors
• Onboard and off-board chargers
• DC/DC converters

Market Outlook and Strategy

The company remains optimistic about the future, citing several positive factors:

1. Industry Recovery: The Indian automobile industry is showing steady improvement, supported by GST 2.0 implementation, early festive demand, and improving customer sentiment.

2. Growth Projections: The domestic two-wheeler market is expected to see 5-7% growth, with strong double-digit export growth in three-wheelers and commercial vehicles.

3. New Customer Acquisition: Sterling Tools has begun to see early traction from newly acquired customers, including Hyundai, which is expected to drive incremental growth.

4. Focus on Import Substitution: The company is strategically focusing on import substitution through technical collaborations, aiming to establish a localized supply chain for safety-critical components.

Management Commentary

Atul Aggarwal, Managing Director of Sterling Tools, commented on the results: "Despite challenges, we are on track with our business strategy. Our standalone business is healthy and growing well, retaining margins despite inflationary pressures. We've expanded our product mix and improved margin structures. Our new ventures in the EV ecosystem are positioned for significant revenue growth and margin expansion over the next 2 to 5 years."

Sterling Tools continues to maintain a net debt-free status with consistent cash flow generation, enabling the company to fund its growth initiatives internally. With its mature cash-generative core business providing a strong foundation, Sterling Tools is well-positioned to capitalize on the evolving opportunities in the automotive and EV sectors.

Sterling Tools Limited , a leading manufacturer of automotive components, has released its financial results for the second quarter and first half of fiscal year 2026, alongside announcing a key appointment to its senior management team.

Financial Performance

Q2 FY26 Results

• Total income: ₹172.20 crore, up 2.3% year-over-year
• EBITDA: ₹25.60 crore, with a margin of 14.9%
• Profit before tax (before exceptional items): ₹16.60 crore, a 3.3% increase from Q2 FY25
• Profit after tax: ₹19.80 crore, showing a significant 66.6% jump year-over-year

H1 FY26 Performance

• Total income: ₹335.40 crore, a 1.2% increase from H1 FY25
• EBITDA: ₹50.10 crore, maintaining a 14.9% margin
• Profit before tax (before exceptional items): ₹31.50 crore, nearly unchanged from the previous year
• Profit after tax: ₹30.80 crore, representing a 32.4% increase year-over-year

Exceptional Item

The company reported an exceptional item of ₹9.50 crore in Q2 FY26, representing enhanced compensation (including interest) received from Delhi Metro Rail Corporation for land acquired in an earlier year.

New Appointment

Sterling Tools has announced the appointment of Mr. Roney John as Chief Manufacturing Officer, effective November 11, 2025. Mr. John brings over 30 years of experience in manufacturing operations, having previously held leadership positions at companies such as Mahindra CIE Automotive Limited and Endurance Technologies Ltd.

Management Commentary

Atul Aggarwal, Managing Director of Sterling Tools Limited, stated, "Our Q2 results demonstrate resilience in a challenging market environment. The appointment of Mr. Roney John as our Chief Manufacturing Officer aligns with our commitment to strengthening our operational capabilities and driving future growth."

About Sterling Tools Limited

Sterling Tools Limited is a Tier-1 supplier of high-tensile cold-forged fasteners for India's automotive industry. The company operates manufacturing plants in Faridabad, Prithla, and Bengaluru, with a wire drawing unit in Ballabgarh, Faridabad. Sterling Tools has been expanding its presence in the electric vehicle (EV) components sector through its subsidiary, Sterling E-Mobility Solutions Limited.