Transcript of the Analyst Meet held on 18th May, 2026
STERTOOLS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Sterling Tools reported strong FY26 standalone fastener performance with total income of Rs725.9 crore (up 11.4%) and EBITDA margins expanding to 15.3% from 14.5% last year. The company secured Rs64 crore in new business acquisitions and entered Tata Passenger Vehicles segment. However, management flagged near-term margin pressure in Q1 FY27 due to unusual inflation in energy, chemicals and plastics costs, though steel is a straight pass-through. For the EV business (SEM), management acknowledged EV adoption timelines have shifted 3-5 years, pushing the 50% non-fastener revenue target back, though SEM is expected to return to profitability by FY28. OBC and DC/DC production lines will commission by Q2 FY27 with commercial supplies from Q3 FY27. A new partnership with Nanjing Haohang for Advanced Rider Assistance Systems (ARAS) for 2-wheelers was announced. FY27 capex guidance for fasteners is Rs75 crore targeting revenue capacity of Rs800-900 crore.
The stock may see mixed reaction - solid FY26 fastener results are positive, but investors may be concerned about near-term Q1 margin pressure from input cost inflation and further delays in EV business monetisation.