Sterling Tools Ltd.Q2 revenue +32%, EBITDA +8%, capex raised to ₹150 Cr

Sterling Tools' Q2 FY27 call, held on 28 October 2026, reported its highest-ever quarterly and half-yearly standalone revenue, up about 32% in Q2 and 28% in H1 against industry growth of about 18% and 20%, driven by commercial vehicles.

EBITDA was ₹27.7 crore, up about 8%, and H1 EBITDA ₹58.7 crore, up 17%, while Q2 profit after tax fell to ₹13.6 crore from ₹19.8 crore, which had included a ₹9.5 crore exceptional gain. Margins were squeezed after low-cost steel inventory ran out and input costs rose, with tungsten carbide up over 300%; customer price increases are being negotiated, some retrospectively, and should flow through in Q3 and Q4. The company raised FY27 capex to about ₹150 crore, with fasteners capex of about ₹120 crore, and debt rose.

E-mobility subsidiary revenue was ₹23 crore, new production lines were commissioned and high-voltage contactor supply began. Management hopes for a 15% fasteners margin by Q4 and targets ₹1,000 crore of fasteners revenue.