Sterling Tools LimitedQ2 FY27 Results & Financial Update
Sterling Tools Limited: Q2 FY27 consolidated results and company financials – revenue ₹250.35 Cr, PAT ₹2.97 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Chart · Market context
Sterling Tools price & chart
Quarter overview
Quarterly earnings analysis
Sterling Tools Limited reported consolidated revenue from operations of INR 250.35 crore for the second quarter ended 30 September 2026, marking an increase compared to the previous quarter's revenue of INR 214.07 crore.
Total consolidated income for Q2 FY27 stood at INR 252.64 crore, advancing from INR 216.60 crore recorded in the preceding quarter ended 30 June 2026.
Profit before tax (PBT) for the current quarter stood at INR 8.69 crore, compared to INR 12.86 crore in the first quarter of FY27, reflecting lower operational margins and increased expense pressures.
Consolidated net profit (PAT) for the quarter was INR 2.97 crore, representing a decrease from INR 5.86 crore reported in the preceding quarter.
Basic and diluted earnings per share (EPS) for Q2 FY27 both stood at INR 0.82, down from INR 1.61 and INR 1.60 respectively in the previous quarter.
Finance costs for the quarter increased to INR 3.15 crore from INR 2.33 crore in Q1 FY27, reflecting higher borrowing levels across the consolidated group.
Depreciation and amortisation expenses remained stable at INR 10.22 crore compared to INR 10.02 crore in the previous quarter.
01 · Business model
What does Sterling Tools do?
Sterling Tools Limited is primarily engaged in the manufacturing of automotive components, specializing in high-tensile fasteners serving the automotive industry.
The company operates on a consolidated basis, incorporating several subsidiaries dedicated to electric mobility solutions, electric vehicle components, and related technologies.
Its revenue engines span automotive fasteners supplied to major vehicle manufacturers alongside emerging electric vehicle component offerings through its subsidiary network.
02 · Historical context
What shaped the business before this quarter
At the Annual General Meeting held on 4 September 2026, shareholders approved a final dividend of INR 2.75 per equity share of face value INR 2 for the financial year 2025-26.
In earlier periods, the company received enhanced compensation including interest from the Delhi Metro Rail Corporation (DMRC) against land acquired.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹250.35 Cr | ₹214.07 Cr |
| Total income | ₹252.64 Cr | ₹216.60 Cr |
| Profit before tax | ₹8.69 Cr | ₹12.86 Cr |
| Profit after tax | ₹2.97 Cr | ₹5.86 Cr |
| EPS | ₹0.82 | ₹1.61 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 1.2% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 3.5% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹2.29 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Consolidated revenue from operations expanded to INR 250.35 crore in Q2 FY27 from INR 214.07 crore in Q1 FY27, driven by higher execution volumes in core fasteners and subsidiary operations.
What drove margins
Cost of materials consumed rose to INR 111.78 crore in Q2 FY27 from INR 91.50 crore in Q1 FY27, compressing net earnings despite higher top-line revenue.
Employee benefits expense rose to INR 26.96 crore, while other expenses stood at INR 95.10 crore during the quarter.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company operates primarily in the manufacturing of automotive components (fasteners), which falls within a single business segment under Ind AS 108.
06 · Strategy & new businesses
How the company is trying to change its growth mix
Subsidiary Structure
Consolidated results include operations from subsidiaries such as Sterling E-Mobility Solutions Limited, Sterling Advanced Electric Machines Private Limited, Sterling E-Mobility Private Limited, Sterling Tech-Mobility Limited, and Sterling Overseas Pte. Limited.
07 · Reported developments
What changed operationally
Consolidated revenue from operations grew sequentially from INR 214.07 crore in Q1 FY27 to INR 250.35 crore in Q2 FY27.
08 · Pressure points & risks
What is not going smoothly
Consolidated net profit declined sequentially from INR 5.86 crore in Q1 FY27 to INR 2.97 crore in Q2 FY27 due to increased raw material consumption and higher finance costs.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half-year ended 30 September 2026, net cash used in operating activities stood at INR 21.04 crore on a consolidated basis, affected by changes in working capital and inventory build-up.
Capital allocation & funding
Consolidated non-current borrowings stood at INR 34.91 crore and current borrowings at INR 154.26 crore as of 30 September 2026.
10 · Beyond the numbers
What changed beyond the numbers
CFO Resignation and Appointment
Mr. Anish Agarwal resigned as Chief Financial Officer effective 26 October 2026 to focus on business development and strategic responsibilities as a Director, and Mr. Amit Dhadda was appointed as CFO effective 27 October 2026.
11 · Previous-quarter changes
What changed since the previous quarter
Revenue increased by approximately 16.95% QoQ to INR 250.35 crore, while PAT declined by approximately 49.36% QoQ to INR 2.97 crore.
12 · Key Q&A
The quarter, answered directly
What does Sterling Tools do?
Sterling Tools Limited is primarily engaged in the manufacturing of automotive components, specializing in high-tensile fasteners serving the automotive industry.
What is the clearest takeaway from Q2 FY27?
Sterling Tools Limited reported consolidated revenue from operations of INR 250.35 crore for the second quarter ended 30 September 2026, marking an increase compared to the previous quarter's revenue of INR 214.07 crore.
What drove revenue or demand?
Consolidated revenue from operations expanded to INR 250.35 crore in Q2 FY27 from INR 214.07 crore in Q1 FY27, driven by higher execution volumes in core fasteners and subsidiary operations.
What mattered most for margins or profitability?
Cost of materials consumed rose to INR 111.78 crore in Q2 FY27 from INR 91.50 crore in Q1 FY27, compressing net earnings despite higher top-line revenue.
What changed operationally beyond the headline numbers?
Subsidiary Structure
What are the main pressure points disclosed for the quarter?
Consolidated net profit declined sequentially from INR 5.86 crore in Q1 FY27 to INR 2.97 crore in Q2 FY27 due to increased raw material consumption and higher finance costs.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Build your own next-quarter scenario
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Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Next Financial Disclosure: Monitor subsequent quarterly filings for margin recovery and operational performance across the EV subsidiary portfolio.
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