Sterling Tools Ltd
Sterling Tools Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management said on revenue, margins and capex.
Guidance rank: #27 of 65 in Auto Components
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The short version
Sterling Tools expects 5% to 7% growth in standalone business revenue for FY '26 and is on track to achieve it. Sterling Tools expects standalone business growth of 5-7% for FY '26 with margin retention and slight improvement in H2 FY '26.
From Sterling Tools Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Revenue & Sales Performance
- Sterling Tools expects 5% to 7% growth in standalone business revenue for FY '26 and is on track to achieve it.
- Consolidated revenues declined in FY '26 due to loss of a key SEML customer, but recovery is expected in FY '27.
- By FY '27, consolidated revenues are forecasted to nearly reach FY '25 levels, driven by growth in fastener business, SEM, and STML businesses.
- Medium to long-term (next 2 to 5 years), strong revenue growth and margin expansion anticipated from existing and new EV ecosystem businesses.
- New technology partnerships and localization efforts are shortening product development cycles, supporting faster market entry.
- The STML HVDC contactor business has revenue potential of INR 200 crores within 5 years.
2 more points from Sterling Tools Ltd's call on revenue
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Profitability & Margins
See what Sterling Tools Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Capex of about INR 50 crores planned next financial year for existing businesses:
- INR 25 crores for standalone fastener business
- INR 10-15 crores for Sterling E-Mobility Solutions Limited (SEM) business
- Marginal capex for STML DC contactor business
- Additional greenfield capex planned for new product launches; plans to be finalized in next 3-6 months
- Over FY '25 and FY '26, INR 45 crores invested in SEM; with additional INR 10-15 crores projected next year, totaling ~INR 60 crores over three years
2 more points from Sterling Tools Ltd's call on capex
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Top-ranked in Auto Components
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
See what Sterling Tools Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- It indicates good visibility and growth prospects over the medium to long term, particularly for standalone businesses and new EV ecosystem businesses.
- The company has begun early traction with new OEM customers, including Hyundai, suggesting growing order inflows.
- For the SEM (Sterling E-Mobility) business, discussions with several customers are ongoing, with potential orders and revenue expected from FY '28 onwards.
- The company expects to recover and surpass FY '25 revenue levels by FY '27 on a consolidated basis, reflecting expected healthy order inflows.
2 more points from Sterling Tools Ltd's call on order book
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Sterling Tools Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest (Q2 FY27): revenue ₹250 Cr, net profit ₹3 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
Full financials →Continue your research
What Sterling Tools's management said in earlier quarters
- Q2 FY27 earnings call analysis →
- Q1 FY27 earnings call analysis →
- Q1 FY26 earnings call analysis →
- Q3 FY25 earnings call analysis →
- Q2 FY25 earnings call →
- Q1 FY25 earnings call →
- Q4 FY24 earnings call →
- Q3 FY24 earnings call →
- Q2 FY24 earnings call →
- Q1 FY24 earnings call →
- Q4 FY23 earnings call →
- Q3 FY23 earnings call →
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. Key concall takeaways from Carraro India Ltd's Q2 FY26 earnings call — and how it ranks against sector peers.
Potential multibaggers · Q2 FY27
Potential multibaggers in Auto Components
on management's own guidance
- Strong growth2
- Strong growth1
- Strong growth3
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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.
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Frequently Asked Questions
What were Sterling Tools Ltd Q2 FY26 results?
Sterling Tools expects 5% to 7% growth in standalone business revenue for FY '26 and is on track to achieve it. Sterling Tools expects standalone business growth of 5-7% for FY '26 with margin retention and slight improvement in H2 FY '26.
What is Sterling Tools Ltd share price analysis?
Sterling Tools Ltd currently shows a neutral. The stock trades at a P/E of 48.2 with a market cap of ₹929 Cr. Investors should review the full earnings analysis for detailed insights.
Is Sterling Tools Ltd planning capital expenditure?
Capex of about INR 50 crores planned next financial year for existing businesses: - INR 25 crores for standalone fastener business - INR 10-15 crores for Sterling E-Mobility Solutions Limited (SEM
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.