Sterling Tools Ltd
Sterling Tools Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
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.
- EV business aims to scale gradually towards INR 450 crores by FY '30, with initial revenues ramping up post-FY '28.
- Automotive industry outlook for H2 FY '26 is optimistic, expecting double-digit growth fueled by OEM demand and exports.
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
- Continuous investments to scale up EV and HVDC operations, including advanced production technologies like Surface Mount Technology (SMT)
- Strategic focus on import substitution through technical collaborations and building localized supply chain for safety-critical EV components
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
- The transcript does not explicitly mention the current or expected order book or pending orders for Sterling Tools Limited.
- However, 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.
- Technology partnerships help in customer engagement and future business development but sales cycles are typically around one year due to validation processes.
- Overall, order visibility is strengthening, especially with new technology and product introductions in EV and high-voltage components.
Sterling Tools Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹222 Cr, net profit ₹2 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What Sterling Tools Ltd's management said in earlier quarters
- Q1 FY27 earnings call analysis →
- Q1 FY26 earnings call analysis →
- Q3 FY25 earnings call analysis →
- Q4 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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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 concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.