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Sterling Tools Q2 FY27 results: net profit down 82.7% to ₹2.97 crore, revenue up 20.4%
Sterling Tools Limited reported consolidated revenue of ₹250.35 crore in Q2 FY27, up 20.4% from Q2 FY26, while EBITDA fell 16.3% to ₹19.77 crore and net profit declined 82.7% to ₹2.97 crore. EBITDA margin narrowed 3.5 percentage points to 7.9%, and basic EPS fell to ₹0.82 from ₹4.75.
Key points
- Consolidated revenue rose 20.4% year on year to ₹250.35 crore in Q2 FY27, and rose 16.9% from ₹214.07 crore in Q1 FY27.
- EBITDA fell 16.3% year on year to ₹19.77 crore, with the margin declining 3.5 percentage points to 7.9%.
- Net profit was ₹2.97 crore, down 82.7% from ₹17.19 crore in Q2 FY26, and basic EPS fell to ₹0.82 from ₹4.75.
- Total expenses increased 24.2% to ₹243.95 crore, including cost of materials of ₹111.78 crore, up ₹33 crore year on year.
- H1 FY27 revenue rose 16.1% to ₹464.42 crore, but net profit fell 66.3% to ₹8.82 crore from ₹26.17 crore.
How did Sterling Tools perform in Q2 FY27?
Sterling Tools reported consolidated revenue of ₹250.35 crore for Q2 FY27, up 20.4% from ₹207.91 crore in Q2 FY26 and 16.9% from ₹214.07 crore in Q1 FY27. EBITDA was ₹19.77 crore, down 16.3% year on year and 12.8% sequentially, while the EBITDA margin fell 3.5 percentage points to 7.9% from 11.4% and 2.7 percentage points from 10.6%.
Profit before tax was ₹8.69 crore, down 63.7% from ₹23.92 crore a year earlier and 32.4% from ₹12.86 crore in the previous quarter. The company reported a net profit of ₹2.97 crore, against ₹17.19 crore in Q2 FY26 and ₹5.86 crore in Q1 FY27. Basic EPS was ₹0.82, compared with ₹4.75 and ₹1.61, respectively.
The board approved unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. On the standalone basis, revenue was ₹225.89 crore, up 32.9%, while profit before tax was ₹19.8% and net profit was ₹13.63 crore.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 250.35 | 214.07 | 207.91 | +20.4% | +16.9% |
| Other income | 2.29 | 2.53 | 2.99 | −23.4% | −9.5% |
| Total expenses | 243.95 | 203.75 | 196.47 | +24.2% | +19.7% |
| EBITDA | 19.77 | 22.67 | 23.61 | −16.3% | −12.8% |
| EBITDA margin | 7.9% | 10.6% | 11.4% | −3.5 pp | −2.7 pp |
| Profit before tax | 8.69 | 12.86 | 23.92 | −63.7% | −32.4% |
| Tax | 5.72 | 7 | 6.74 | −15.1% | −18.3% |
| Net profit | 2.97 | 5.86 | 17.19 | −82.7% | −49.3% |
| EPS (₹) | 0.82 | 1.61 | 4.75 | −82.7% | −49.1% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Sterling Tools' costs and profit?
Total expenses rose ₹47.48 crore, or 24.2%, year on year to ₹243.95 crore. Cost of materials increased ₹33 crore, or 41.9%, to ₹111.78 crore, other expenses rose ₹17.63 crore, or 22.8%, to ₹95.10 crore, and employee cost increased ₹2.12 crore, or 8.5%, to ₹26.96 crore.
Finance costs increased ₹0.74 crore, or 30.7%, to ₹3.15 crore, while depreciation rose ₹0.45 crore, or 4.6%, to ₹10.22 crore. Other income fell ₹0.70 crore, or 23.4%, to ₹2.29 crore. There was no exceptional item in Q2 FY27, against a ₹9.50 crore gain in Q2 FY26.
Tax expense declined ₹1.02 crore, or 15.1%, to ₹5.72 crore. Management said input prices rose by up to 300%, while recovery from OEMs lagged, keeping fastener margins under pressure in FY27. Negotiated price increases were expected to enter the profit and loss account in Q3 and Q4 FY27, including some retrospective effect.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 111.78 | 78.78 | +33 | +41.9% |
| Employee cost | 26.96 | 24.84 | +2.12 | +8.5% |
| Finance costs | 3.15 | 2.41 | +0.74 | +30.7% |
| Depreciation | 10.22 | 9.77 | +0.45 | +4.6% |
| Other expenses | 95.10 | 77.47 | +17.63 | +22.8% |
| Total expenses | 243.95 | 196.47 | +47.48 | +24.2% |
| Other income | 2.29 | 2.99 | −0.70 | −23.4% |
| Tax | 5.72 | 6.74 | −1.02 | −15.1% |
| Exceptional items | none | +9.50 (gain) |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
For H1 FY27, consolidated revenue rose 16.1% to ₹464.42 crore from ₹399.99 crore in H1 FY26, while total income increased 15.6% to ₹469.25 crore from ₹405.86 crore. Revenue growth did not translate into higher profit as costs and expenses weighed on the result.
Profit before tax fell 40.5% to ₹21.54 crore from ₹36.2 crore, and net profit declined 66.3% to ₹8.82 crore from ₹26.17 crore. Basic EPS fell 66.4% to ₹2.43 from ₹7.23.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 464.42 | 399.99 | +16.1% |
| Profit before tax | 21.54 | 36.20 | −40.5% |
| Net profit | 8.82 | 26.17 | −66.3% |
| EPS (₹) | 2.43 | 7.23 | −66.4% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹887.31 crore, up from ₹821.11 crore at 31 March 2026. Total equity was ₹526.9 crore compared with ₹526.25 crore, while borrowings rose to ₹189.17 crore from ₹131.24 crore and cash fell to ₹7.33 crore from ₹48.41 crore.
Inventories increased to ₹199.18 crore from ₹159.04 crore, and trade receivables rose to ₹120.44 crore from ₹99.46 crore. Trade payables were ₹83.59 crore, up from ₹74.11 crore. H1 FY27 operating cash flow was negative ₹21.04 crore, against positive ₹29.11 crore in H1 FY26.
Investing cash flow was negative ₹61.48 crore, compared with negative ₹38.09 crore a year earlier, while financing cash flow was positive ₹41.44 crore against positive ₹6.8 crore. Capital expenditure was ₹52.23 crore in H1 FY27, up from ₹27.54 crore in H1 FY26.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 887.31 | 821.11 |
| Total equity | 526.90 | 526.25 |
| Borrowings | 189.17 | 131.24 |
| Cash and equivalents | 7.33 | 48.41 |
| Inventories | 199.18 | 159.04 |
| Trade receivables | 120.44 | 99.46 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | −21.04 | 29.11 |
| Cash from investing | −61.48 | −38.09 |
| Cash from financing | 41.44 | 6.80 |
| Capital expenditure | 52.23 | 27.54 |
Source: Company's results filing (XBRL).
How has Sterling Tools done over the last 8 quarters?
Revenue increased year on year in each of the last three quarters. It reached ₹250.35 crore in Q2 FY27, above ₹205.85 crore in Q3 FY26 and ₹221.97 crore in Q4 FY26, after bottoming at ₹192.08 crore in Q1 FY26.
Net profit was ₹2.97 crore in Q2 FY27, higher than ₹1.59 crore in Q4 FY26 but lower than ₹5.86 crore in Q1 FY27. The recent low was ₹1.56 crore in Q3 FY26, while the eight-quarter peak was ₹17.19 crore in Q2 FY26.
EBITDA margin was 7.9% in Q2 FY27, up from 3.6% in Q4 FY26 but below 10.6% in Q1 FY27. The highest margin in the eight-quarter series was 11.5% in Q1 FY26.
What else did the company announce?
The board approved the unaudited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026 and took the limited review report on record. The company also filed an investor presentation for the results.
Anish Agarwal resigned as chief financial officer and key managerial personnel with effect from 26 October 2026, while continuing as a whole-time director. He said he wanted to devote more time to business development and his strategic responsibilities as a director.
The board appointed Amit Dhadda as chief financial officer and key managerial personnel with effect from 27 October 2026, following recommendations from the Nomination and Remuneration Committee and Audit Committee. The same-day filings did not announce a dividend or fund raise.
What did Sterling Tools' management say?
Management raised FY27 consolidated capital expenditure guidance to about INR150 crore across fasteners, DC contactors and MCUs. Fastener capex is about INR110-120 crore, including approximately INR25 crore incurred by the earnings call, while SEM capex is about INR20 crore and STML capex is INR10-odd crore.
Management said input prices rose by up to 300%, but OEM price recoveries lag, compressing fastener margins. It hoped the quarterly fastener EBITDA margin would return to about 15% by Q4 FY27 as negotiated and retrospective price recoveries pass through, although it could not confirm the FY27 annual margin close.
Management expects negotiated OEM price increases to enter the profit and loss account in Q3 and Q4 FY27, with some retrospective effect. It said SEM needs more than INR150 crore of annual revenue to break even and expects to outperform that level in FY28, with new lines contributing in Q3-Q4 FY27 and commercial supplies from STML having begun.
Management identified delayed OEM price pass-through, commodity inflation and the West Asia conflict as risks. It also said SEM's ramp depends on customer production targets, validation and supply-chain execution, while one AEM proof-of-concept was customer-paused. The company also set an aspiration of INR1,000 crore in fasteners revenue.
How did Sterling Tools shares react?
After the filing appeared, the stock was down 3.1% after five minutes, down 1.0% after 15 minutes and down 1.9% after 30 minutes. On the reaction day, it closed 3.2% below the previous close of ₹217.02, compared with a 1.6% median rise for the Auto Components & Equipments industry.
By the next day's close, the stock was down 5.9% from its pre-results close, while the industry median was up 2.0%; the difference was negative 7.9 percentage points. By five sessions later, the stock was down 8.0% from the pre-results close, against a 2.7% industry median, a difference of negative 10.6 percentage points.
Earlier reaction-day moves were mixed: the stock rose 10.4% on 15 May 2026 and 5.4% on 11 November 2025, while it fell 6.7% on 3 February 2026 and 5.7% on 4 February 2025.
| After the filing | Stock | Auto Components & Equipments median |
|---|---|---|
| 5 minutes | −3.1% | |
| 15 minutes | −1.0% | |
| 30 minutes | −1.9% | |
| Reaction day | −3.2% | +1.6% |
| Next day | −5.9% | +2.0% |
| 5 days | −8.0% | +2.7% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 5 August 2026 | −0.4% |
| 15 May 2026 | +10.4% |
| 3 February 2026 | −6.7% |
| 11 November 2025 | +5.4% |
| 7 August 2025 | −2.8% |
| 13 May 2025 | −3.5% |
| 4 February 2025 | −5.7% |
| 14 November 2024 | +9.0% |
Source: MarketPing price-reaction measurement.
How did other Auto Components & Equipments companies do?
Forty-six Auto Components & Equipments companies were compared for revenue growth. Their median revenue growth was 33.9%, while 13 peers grew slower than Sterling Tools and 33 grew faster than Sterling Tools in the quarter.
Profit was higher for 38 peers, with profit comparisons available for 47 companies. Sterling Tools’ consolidated revenue growth was 20.4% in Q2 FY27.
| Sterling Tools revenue growth (YoY) | +20.4% |
|---|---|
| Median of 46 other Auto Components & Equipments companies | +33.9% |
| Companies with slower revenue growth than Sterling Tools | 13 of 46 |
| Companies with faster revenue growth than Sterling Tools | 33 of 46 |
| Companies whose net profit rose | 38 of 47 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Sterling Tools' revenue in Q2 FY27?
Revenue from operations was ₹250.35 crore, up 20.4% from ₹207.91 crore in Q2 FY26 (consolidated).
Did Sterling Tools make a profit in Q2 FY27?
Yes. Net profit was ₹2.97 crore, against a net profit of ₹17.19 crore in Q2 FY26.
What was Sterling Tools' EPS in Q2 FY27?
Basic earnings per share were ₹0.82, against ₹4.75 in Q2 FY26.
How did Sterling Tools shares react to the Q2 FY27 results?
On the reaction day the stock moved −3.2% from the previous close; the median Auto Components & Equipments stock moved +1.6%.
When did Sterling Tools announce its Q2 FY27 results?
On 27 October 2026, in a filing to the NSE.
Sources
- Board Meeting Intimation for Inter Alia, To Consider And Approve The Unaudited Standalone And Consolidated Financial Results Of The Company For The Second Quarter And Half Year Ended 30Th September 2026 And Other Business Matters. (BSE, 19 October 2026) · PDF
- Outcome of Board Meeting (NSE, 27 October 2026) · PDF
- The earnings call (2 November 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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