Sterling Tools Reports FY26 Results, Highlights Growth in Fasteners and E-Mobility Ventures
Sterling Tools Limited announced its Investor Presentation for the fourth quarter and financial year ended March 31, 2026, detailing the company's performance and strategic advancements across its diverse segments.The company reported significant operational and financial milestones during the fiscal year. In its core standalone fasteners business, Sterling Tools saw strong performance, achieving revenue growth of 11.4% year-over-year (YoY) to INR 725.9 crore. EBITDA for the standalone fasteners business rose by 17.1% YoY to INR 111.0 crore, with EBITDA margins improving to 15.3%. Profit before exceptional items grew by 27.6% YoY to INR 74.0 crore.
The Group’s consolidated financial results showed Total Income of 839.5 crore for FY26, reflecting a decline of 19.1% YoY compared to FY25.
Financial Performance Overview
The financial data reveals key figures for the quarter and the full fiscal year:Consolidated Profit & Loss Statement (Rs. in Crore)
| Particulars | Q4FY26 | Q4FY25 | YoY (%) | Q3FY26 | QoQ (%) | FY26 | FY25 | YoY (%) |
|---|---|---|---|---|---|---|---|---|
| Total Income | 224.9 | 205.7 | 9.3% | 208.7 | 7.8% | 839.5 | 1038.0 | -19.1% |
| Gross Profit | 134.7 | 115.4 | 16.7% | 124.9 | 7.8% | 502.7 | 526.0 | -4.4% |
| Gross Profit Margin | 59.9% | 56.1% | 59.8% | 59.9% | 50.7% | |||
| Adjusted EBITDA* | 12.0 | 26.5 | -54.6% | 27.0 | -55.5% | 93.7 | 132.4 | -29.3% |
| EBITDA Margin | 5.3% | 12.9% | 12.9% | 11.2% | 12.8% | |||
| Profit before tax | 7.0 | 11.9 | -41.3% | 4.5 | 56.1% | 47.7 | 76.6 | -37.8% |
| Profit before tax Margin | 3.1% | 5.8% | 2.1% | 5.7% | 7.4% | |||
| Profit after tax | 1.6 | 8.8 | -82.0% | 1.6 | 219.1% | 29.3 | 58.3 | -49.7% |
| Profit after tax Margin | 0.7% | 4.3% | 0.7% | 3.5% | 5.6% |
Note: The Profit before tax and Profit after tax figures for the year ended March 31, 2026, include exceptional compensation amounting to INR 949.64 lakhs, including interest of INR 622.45 lakhs, received from Delhi Metro Rail Corporation (DMRC).
Operational and Strategic Milestones
The company highlighted its diversification efforts across multiple segments, including its core fasteners business, Sterling E-Mobility, and Sterling Tech-Mobility.In the fasteners segment, Sterling Tools noted its expansion into the Tata Passenger Vehicle (PV) segment and strong momentum in the commercial vehicle segment, particularly from Tata CV and Ashok Leyland during the second half of the year.
E-Mobility and Technology Focus:
- Sterling E-Mobility: This segment reported strong cash flow generation and maintained a Net Debt free Position. It is actively building out its comprehensive EV Powertrain Solution, encompassing integrated motors and controllers, Onboard & offboard chargers, and DC/DC converters. The company announced that OBC and Multi Function lines are slated for commissioning in Q2 FY27, with supplies expected from Q3 FY27 onwards.
- Sterling Tech-Mobility: The unit remains focused on HVDC Contactors & Relays, maintaining strong engagement in the EV segment. The company is pursuing import substitution through technical collaborations to localize the supply of safety-critical components. Production for serial orders of HVDC Contactors & Relays is anticipated to commence in July/August 2026.
Technology Partnerships and Expansion:
Sterling Tools has solidified strategic alliances to enhance its technological edge. Partnerships include:
- Jiangsu Gtake Electric Co. Ltd, China: For Motor Control units.
- Landworld Technology Co. Ltd., China: For DC/DC Converters and Onboard & offboard chargers.
- Advanced Electric Machines Ltd, UK: For Rare-earth magnet-free Motors.
Furthermore, the company entered into technology collaborations in advanced safety systems:
- ARAS (Advanced Rider Assistance Systems): A Technology Collaboration & Supply Agreement was signed with Nanjing Haohang (China). Sterling Tools is set to lead local engineering, manufacturing, and sales of ARAS for 2Ws.
- ADAS & DMS (Advanced Driver Assistance Systems & Driver Monitoring Systems): This partnership with MINIEYE (China) focuses on localizing ADAS & DMS through India-specific perception tuning, aligning with mandatory ADAS & DDAWS regulations effective January 1, 2027.
Corporate Presence
The company operates through multiple manufacturing facilities and units:- STL (Standalone): Maintains 3 manufacturing Plants (Faridabad, Prithla, Bengaluru) and 1 Wire Drawing Unit (Ballabhgarh), complemented by 18 warehouses across India.
- SEM EV Powertrain & Power Electronics: Operates 1 Manufacturing Plant in Faridabad and 2 Tech Centres in Bengaluru and Faridabad.
- STML HVDC Contactors and Relays: Operates 1 Manufacturing Plant in Bengaluru.
STERTOOLS Stock Price Movement
On Friday, Sterling Tools Limited shares edged higher, gaining 10.00% to close at ₹244.69. The equity settled with a robust volume of 311,326 shares, signaling strong investor interest across the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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