Sterling Tools Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sterling Tools Ltd-$ filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sterling Tools reported standalone total income growth of 23.7% year-on-year to Rs 201.9 crores in Q1 FY27, with EBITDA up 26.9% to Rs 31.1 crores and profit after tax up 48.4% to Rs 16.4 crores. Management said steel and broader input cost inflation created pressure during the quarter as lower-cost inventory was consumed, and it is negotiating pass-through price increases with customers. The company also detailed progress at its EV subsidiaries Sterling E-Mobility and Sterling Tech-Mobility, including new customer programs and planned production line commissioning in Q2 FY27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total income: INR201.9 crores (Q1 FY27)
p. 4
“Total income grew by 23.7% year-on-year to INR201.9 crores”
Atul Aggarwal, page 4 of the filed PDF · View the filing
EBITDA: INR31.1 crores (Q1 FY27)
p. 4
“EBITDA increased by 26.9% year-on-year to INR31.1 crores with EBITDA margins improving to 15.4% compared to 15% last year”
Atul Aggarwal, page 4 of the filed PDF · View the filing
Profit after tax: INR16.4 crores (Q1 FY27)
p. 4
“Profit after tax grew by 48.4% year-on-year to INR16.4 crores with margins improving to 8.1%”
Atul Aggarwal, page 4 of the filed PDF · View the filing
SEM active customer programs: 33
p. 4
“Today, SEM is engaged in 33 active customer programs with strong relationships across leading OEMs”
Atul Aggarwal, page 4 of the filed PDF · View the filing
SEM new OEM confirmations: 4 OEMs
p. 4
“We also received business confirmations from 4 OEMs, further strengthening our order pipeline and enhancing our long-term visibility.”
Atul Aggarwal, page 4 of the filed PDF · View the filing
STML secured customer programs: 7
p. 5
“Our customer engagements continue to progress well with 7 customer programs already secured.”
Atul Aggarwal, page 5 of the filed PDF · View the filing
Standalone capacity utilization: 90% to 95%
p. 6
“So currently, as of today, I think we are probably at 90% to 95% utilization, which is a very high number, keeping in mind the product mix issues we have.”
Atul Aggarwal, page 6 of the filed PDF · View the filing
SEM current installed capacity: over INR300 crores
p. 8
“we believe that we've got capacity right now for about over INR300 crores without any further investments”
Jaideep Wadhwa, page 8 of the filed PDF · View the filing
STML current installed capacity: around INR140 crores
p. 8
“For STML, we can do around INR140 crores on a 3-shift basis.”
Anish Agarwal, page 8 of the filed PDF · View the filing
STML cash investment from holdco: INR50-odd crores
p. 8
“So we have invested -- our current investment in STML is INR50-odd crores”
Atul Aggarwal, page 8 of the filed PDF · View the filing
SEM cash investment from holdco: INR48 crores to INR49 crores
p. 8
“our current investment in SEM, also from a cash investment perspective is again about INR48 crores to INR49 crores”
Atul Aggarwal, page 8 of the filed PDF · View the filing
SEM FY25 revenue: INR380 crores (FY25)
p. 11
“So in FY25, SEM business has clocked about INR380 crores of revenue backed on one large key anchor customer.”
Atul Aggarwal, page 11 of the filed PDF · View the filing
SEM revenue lost from anchor customer in-sourcing: INR280-odd crores
p. 11
“We lost close to INR280-odd crores of revenue in just 1 year.”
Atul Aggarwal, page 11 of the filed PDF · View the filing
Integrated unit price for bus/heavy truck platforms: INR3 lakh to INR3.5 lakh per unit
p. 11
“some of the integrated units that we are providing for the heavy bus and -- for the bus and heavy truck platforms typically run about INR3.5 lakh -- anywhere between INR3 lakh and INR3.5 lakh per unit based on configuration”
Jaideep Wadhwa, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Standalone fasteners business capex — INR80 crores · FY27
stated firmly by Atul Aggarwal
p. 6
“So currently, as of today, I think we are probably at 90% to 95% utilization, which is a very high number, keeping in mind the product mix issues we have. So you can pretty much say we are fully utilized right now. But this INR88 crores (wrongly said, kindly read it as INR80 crores) capex we have for this year, some of it has already kicked in, in the first quarter marginally.”
Atul Aggarwal, page 6 of the filed PDF · View the filing
Fasteners business growth — around 20% plus · FY27
stated conditionally by Atul Aggarwal
p. 6
“our fastener business will grow like we've been -- we are up, I think, 20% plus in the first quarter. And based on estimates we have right now, the near”
Atul Aggarwal, page 6 of the filed PDF · View the filing
EV businesses (SEM and STML) revenue growth — 20% to 30% · FY27
stated as an aspiration by Atul Aggarwal
p. 7
“So that's the kind of number we are looking at growth in our EV businesses, between 20% and 30%.”
Atul Aggarwal, page 7 of the filed PDF · View the filing
EV businesses (SEM and STML) revenue growth — 30% to 40% · FY28
stated as an aspiration by Atul Aggarwal
p. 7
“I think we are looking at maybe another 30% to 40% growth next year, FY28 basis.”
Atul Aggarwal, page 7 of the filed PDF · View the filing
Standalone EBITDA margin — FY27
stated conditionally by Atul Aggarwal
p. 7
“We hope -- despite the pressures, we are quite confident that we'll be able to hold our margin structures on a full year basis despite the steel and inflation because we expect to get price increases from customers, which are in a very advanced stage.”
Atul Aggarwal, page 7 of the filed PDF · View the filing
SEM and STML breakeven — FY28
stated conditionally by Atul Aggarwal
p. 7
“So I think both SEM and STML, we expect them to break even FY28. This year, yes, they will lose -- both of them will lose money.”
Atul Aggarwal, page 7 of the filed PDF · View the filing
SEM breakeven revenue level — INR175 crores
stated as an aspiration by Atul Aggarwal
p. 8
“On an SEM basis, we'll probably break even at a level of maybe INR175 crores and STML at about maybe INR70-odd crores.”
Atul Aggarwal, page 8 of the filed PDF · View the filing
Operating margin for SEM and STML at breakeven scale — about 10%, plus/minus 2%
stated as an aspiration by Atul Aggarwal
p. 8
“It will be about 10%, give or take, plus/minus 2%. We'll try and keep it at double digit 10% plus levels.”
Atul Aggarwal, page 8 of the filed PDF · View the filing
Additional capex for standalone fasteners to reach INR1,000 crores capacity — INR25 crores to INR30 crores · next year
stated conditionally by Atul Aggarwal
p. 9
“we believe to touch a -- if the markets and the customers support us, to touch a revenue of INR1,000 crores, we may have to do anywhere between INR25 crores to INR30 crores investments next year just to balance out everything to arrive at a capacity of -- to arrive at a potential revenue of INR1,000 crores.”
Atul Aggarwal, page 9 of the filed PDF · View the filing
Onboard charger and multifunction unit production start — December or January
stated conditionally by Jaideep Wadhwa
p. 10
“So looking at that, I'm saying that I feel that we will be in production or we will start supplies sometime in December or January.”
Jaideep Wadhwa, page 10 of the filed PDF · View the filing
STML commercial supplies commencement — Q2 FY27
stated firmly by Atul Aggarwal
p. 5
“Commercial supplies are scheduled to commence from the second quarter FY27, marking an important milestone for the business.”
Atul Aggarwal, page 5 of the filed PDF · View the filing
ADAS regulation for medium and heavy commercial vehicles — October 2027, possibly pushed to Jan 2028
stated conditionally by Anish Agarwal
p. 12
“there's a regulation, which has been notified, which is kicking in from October 2027 in medium and heavy commercial vehicles, which is probably 0.5 million units a year across 5 different features of driver monitoring, front collision warning, blind spot etc.”
Anish Agarwal, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said steel and broader inflationary cost increases, including wages up as much as 35% in some areas, offset gross margin gains, but pass-through price increase negotiations with customers are at a mature stage.
Answered by Atul Aggarwal
Asked by Deepan Sankara: Why did EBITDA margin improve only 40 bps despite a 270 bps gross margin increase?
p. 6
“there have been 2 pressures coming this year. One is the steel price increase. And second, the big one also is, which is very unique this year, is the inflationary cost increase.”
Atul Aggarwal, page 6 of the filed PDF · View the filing
Management said cash investment from the holding company is about INR50-odd crores in STML and INR48-49 crores in SEM.
Answered by Atul Aggarwal
Asked by Nitin: What is the total exposure including working capital for SEM and STML subsidiaries?
p. 8
“So we have invested -- our current investment in STML is INR50-odd crores and our current investment in SEM, also from a cash investment perspective is again about INR48 crores to INR49 crores.”
Atul Aggarwal, page 8 of the filed PDF · View the filing
Management attributed losses to a large anchor customer in-sourcing production, resulting in a big revenue drop, combined with continued investment in R&D and engineering capabilities.
Answered by Atul Aggarwal
Asked by Dev V: Why is the SEM business making losses today?
p. 11
“That key anchor customer in-sourced their product. We lost close to INR280-odd crores of revenue in just 1 year.”
Atul Aggarwal, page 11 of the filed PDF · View the filing
Management said lines will be commissioned by quarter end, followed by roughly 4 months of customer road trials before supplies begin.
Answered by Jaideep Wadhwa
Asked by Payal Shah: When will onboard charger and multifunction unit products contribute meaningfully to revenue?
p. 10
“Once we give samples from these lines, typically, customers have to do on-road trials, which could take us about 4 months to do.”
Jaideep Wadhwa, page 10 of the filed PDF · View the filing
Risks flagged
Rising steel prices increasing cost pressure on the fasteners business
p. 4
“During the quarter, we witnessed an increase in steel prices, which created some cost pressure on our fasteners business.”
Atul Aggarwal, page 4 of the filed PDF · View the filing
Depletion of lower-cost steel inventory making higher input costs more visible in coming quarters
p. 4
“As lower cost inventory has now been largely utilized, the impact of higher steel prices is expected to be more visible in the coming quarter.”
Atul Aggarwal, page 4 of the filed PDF · View the filing
Broad-based inflationary cost pressure across commodities and wages
p. 6
“All commodities, besides steel, which is chemicals, tungsten, steel, even wages -- minimum wages have gone up dramatically this year by as high as 35% in some areas.”
Atul Aggarwal, page 6 of the filed PDF · View the filing
Geopolitical developments, commodity prices and global supply chain disruptions affecting the automotive industry outlook
p. 3
“At the same time, geopolitical developments, commodity prices and global supply chain disruptions remain key factors to monitor during the year.”
Atul Aggarwal, page 3 of the filed PDF · View the filing
India's EV ecosystem remains underdeveloped and dependent on overseas technology and supply chains
p. 10
“So you've got to keep in mind that these EV businesses have very poor EV ecosystem in India. India is still largely dependent on technologies and supply chains from overseas.”
Atul Aggarwal, page 10 of the filed PDF · View the filing
Prior loss of a large anchor customer due to in-sourcing sharply reduced SEM revenue
p. 11
“That key anchor customer in-sourced their product. We lost close to INR280-odd crores of revenue in just 1 year.”
Atul Aggarwal, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.