Sterling Tools Limited has informed the Exchange about Investor Presentation
STERTOOLS · price
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Sterling Tools reported a mixed Q1FY26, with standalone fasteners business holding steady but consolidated results hit by weakness in its EV subsidiary SGEM. Standalone revenue was flat at Rs. 163.2 Cr (vs Rs. 162.9 Cr last year) with EBITDA up 1.8% to Rs. 24.5 Cr and margins slightly improving to 15.0%. On a consolidated basis, total income fell sharply by 31.3% YoY to Rs. 195.0 Cr, with PAT dropping 51.2% to Rs. 9.0 Cr, mainly because one key SGEM customer moved to in-house production. Management highlighted new customer wins including Hyundai in fasteners, a first nomination for DC/DC converters from a leading e-CV OEM, and ongoing magnet-free motor trials with UK-based AEM. The Sterling Tech-Mobility (STML) venture for HVDC contactors is set to begin commercial production in H2FY26 in partnership with China's Kunshan GLVAC Yuantong. SGEM is actively pursuing 28 customer programs across 2W, 3W, LCV and HCV segments to diversify away from the customer that insourced.
Shareholders may view the sharp consolidated earnings drop as a concern, though it stems from a single-customer disruption rather than a broad slowdown. Standalone fasteners remain the cash cow with stable margins, and the EV subsidiaries are still in a build-out phase with multiple growth catalysts (HVDC, DC/DC, magnet-free motors) that could deliver upside if nominations convert to revenue over FY26-27.