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Earnings Call

Sterling Tools Earnings Call: Key Takeaways

Sterling Tools delivered robust FY26 results with stand-alone revenue growing 11.4% and EBITDA 17.1%. Management is diversifying into EV components (SEM) and safety solutions (ARAS) while maintaining fastener market leadership.

Highlights
Revenue growthFY26 growth of 11.4% YoY for stand-alone fastener business.
MarginsEBITDA margin improved from 14.5% to 15.3% YoY.
Order bookSecured ₹64cr in business acquisitions during FY26.
Demand visibilityStrong domestic auto demand; CV and 2-wheeler segments at record highs.
Management confidenceHigh confidence in maintaining 15% plus EBITDA margins long-term.

Growth

FY26 Total Income grew 11.4% YoY to ₹725.9cr; EBITDA increased 17.1% to ₹111cr; EBITDA margins improved to 15.3%.

Outlook

₹75cr capex for fasteners in FY27. Targeting ₹900-1,000cr fastener revenue; SEM expected to regain profitability by FY28.

Risks

Slower-than-expected EV adoption (shifted 3-5 years), inflationary pressures in steel/energy, and West Asia crisis disruptions.

Source

Earnings Call filed with NSE, NSE: STERTOOLS. Summary written with AI assistance from the document.

Read the document ↗

Sterling Tools Ltd: key numbers

Share price
₹239.46
Market cap
₹870.3 Cr
Revenue (annual)
₹827.8 Cr
Net profit (annual)
₹29.33 Cr
P/E (TTM)
33.2×Sector 33.6×
Promoter holding
64.86%+0.00% QoQ
FII holding
0.09%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Promoter stake change
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