STERTOOLSNSESterling Tools Limited· FastnersMediumNeutral
Announced Wed, 21 May · 10:58 IST

Sterling Tools Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedAnalyst Day Multiyear TargetsInvestor Communications View source PDF

STERTOOLS · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Sterling Tools crossed INR1,000 crore revenue for the first time in FY25, with consolidated revenue up 10.6% to INR1,038 crores and adjusted EBITDA up 13.8% to INR132.4 crores (margin expanded to 12.8%). Standalone revenue grew 6% to INR652 crores with PAT up 10.5% to INR42.9 crores. Company remains net debt-free with INR12 crores surplus cash and saw ICRA rating upgrade to AA-positive. Management highlighted three new product launches in the last 12 months — magnetics (Korean partner for Hyundai Kia), relays (with Chinese firm Kunshan Guoli in Bangalore), and magnet-free motors (with Advanced Electric Machines). New Power Transmission subsidiary targets INR200 crores revenue by 2030 with INR50 crores investment. Long-term vision is a 50:50 revenue split between legacy fastener and new EV/power electronics businesses by 2030, with 25%+ ROCE target on new businesses.

Likely market impact

Negative near-term: Management explicitly guided FY26 to be a revenue decline year as key customer Ola in-housed its Gen 3 MCU platform, with even FY27 potentially not matching FY25 levels. However, long-term story remains positive with diversified EV product portfolio, first-mover advantage in magnet-free motors, and clear revenue diversification beyond 2-wheeler MCUs (targeting 40% from 3-wheelers/LCVs/HCVs vs ~7% earlier).