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

Sterling Tools' H1FY26 consolidated income was 405.9 Cr (PAT 26.2 Cr), with Q2FY26 at 210.9 Cr (PAT 17.2 Cr). These include a 9.5 Cr exceptional gain. The core fasteners business (standalone) showed strength, reporting H1FY26 income of 335.4 Cr (+1.2% YoY) and PAT of 30.8 Cr (+32.4% YoY), driven by OEM sales and a new client, Hyundai Motors. The EV segment (SEM) is scaling, with 2W and LCV/HCV being key drivers.

Strategy revolves around "Diversification Through Innovation." The company is strengthening EV powertrain solutions via global tech alliances and spearheading domestic manufacturing of high-voltage components (STML), targeting 150-200 Cr revenue within 5 years. Insourcing and advanced manufacturing for EV parts are key.

Significant developments include commercial production of HVDC Contactors & Relays starting Dec 2025, enhanced SEM MCU capacity to 600,000 units/pa, and new licensing agreements for magnet-free motors, onboard chargers, and DC/DC converters.

Consolidated H1FY26 EPS stood at 7.23, while standalone EPS was 8.53, highlighting the core business's robust performance.

Management emphasizes strategic alignment with "Make in India" and aims for double-digit margins from the new high-voltage component venture as it matures.