1. Opening Hook
Just when the auto sector decided to stop sulking and start revving again, Sterling Tools walked in saying, “Relax, we’ve been busy.” GST 2.0 happened, festive demand showed up fashionably late, and OEMs suddenly remembered how to place orders.
Sterling’s fastener business stayed boringly stable, while management casually dropped EV buzzwords like HVDC, MCU, OBC, DC/DC, and “first mover” every few minutes. Somewhere between land compensation from DMRC and rare-earth-free motors that won’t make money till FY28, the company quietly reminded everyone it’s net debt free.
Margins didn’t explode, revenues didn’t collapse, and ambition clearly didn’t take a coffee break. The real masala, though, lies in the EV ecosystem build-out and whether this buffet of partnerships converts into actual billing.
Stick around. It gets more interesting once the spreadsheets start sweating.
2. At a Glance
- Revenue ₹172.2 cr – Fasteners kept the lights on, EVs still learning to pay rent.
- EBITDA margins flat – Inflation knocked, Sterling pretended not to hear.
- Exceptional gain ₹9.5 cr – DMRC finally said sorry… with interest.
- Net debt-free – CFO flexed without saying the word “prudent.”
- Standalone growth 5–7% guidance – Not thrilling, but dependable like a nut and bolt.
3. Management’s Key Commentary
“The automotive industry witnessed steady improvement towards the end of Q2.”
(Translation: September saved August’s embarrassment 😏)
“We expect the second half of FY26 to be significantly better.”
(H2 is doing all the heavy lifting, again.)
“We have begun to see early traction from newly acquired customers, including Hyundai.”
(Proof that PowerPoints sometimes convert to purchase orders.)
“We continue to maintain a net debt-free status.”
(Balance sheet still sleeps peacefully at night.)
“Sterling Gtake Mobility has been rebranded as Sterling E-Mobility Solutions.”
(New name, same ambition, bigger alphabet soup.)
“STML will start commercial production of HVDC contactors in December 2025.”
(Finally, a product with an actual start date 🚀)
“This business has revenue potential of ₹200 crore in five years.”
(Patience required. Lots of it.)
4. Numbers Decoded
Metric Q2 FY26 Commentary
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Standalone Revenue ₹172.2 cr Fasteners doing honest work
EBITDA Margin Flat YoY Inflation = party spoiler
Exceptional Income ₹9.5 cr DMRC cameo appearance
Net Debt Nil Banker left on read
Standalone Growth Guidance 5–7% FY26 Slow, steady, respectable
EV Revenue FY26 ₹2–3 cr Pocket change for now
HVDC Biz Potential ₹200 cr / 5 yrs Long runway, foggy visibility
- Core business stable; EV story still in trailer mode.
5. Analyst Questions
- MCU growth despite customer volume drop?
Management credited diversification beyond scooters into LCVs and HCVs.
(Translation: Eggs, meet multiple baskets.) - Landworld partnership logic?
Answer revolved around 4-in-1
