Sterling Tools Limited — PPTs, 11-11-2025: Investor Presentation

Sterling Tools' H1FY26 results show a mixed bag. The core fasteners business (standalone) delivered stable revenue growth, hitting ₹335.4 Cr, but the consolidated picture saw a revenue drop of 28.7% YoY to ₹405.9 Cr, primarily due to a significant decline in its EV components (SEM) segment. Consolidated PAT stood at ₹26.2 Cr (-27.1% YoY), though standalone PAT surged 32.4% to ₹30.8 Cr, helped by a ₹9.5 Cr exceptional gain.

The company is strategically betting on EV diversification. SEM is expanding its Motor Control Unit (MCU) capacity to 600,000 units/year and has new agreements for magnet-free motors and Onboard Chargers. A new subsidiary, STML, is setting up a facility for high-voltage DC contactors and relays, aiming for ₹150-200 Cr revenue within five years with strong margins, reinforcing 'Make in India'. The traditional fasteners business is expanding its client base, adding Hyundai Motors. Debt/Equity remains healthy at 0.28x. Management is focused on expanding segments and enhancing margins through these strategic EV plays for future growth.