Sterling Tools Q2 Consolidated Profit Drops to Rs 2.97 Crore as Subsidiary Losses Offset Revenue Growth

Sterling Tools has reported an 83 percent year-on-year decline in consolidated net profit to Rs 2.97 crore for Q2 FY27, impacted by operational losses in its electric mobility subsidiaries and an exceptional gain in the base year.

On a standalone basis, Sterling Tools reported net sales of Rs 225.89 crore in Q2 FY27 against Rs 169.93 crore in Q2 FY26. Standalone total expenses rose to Rs 210.29 crore from Rs 155.58 crore. Standalone net profit stood at Rs 13.63 crore compared to Rs 19.80 crore in the year-ago quarter, which had also been elevated by an exceptional gain of Rs 9.50 crore representing land acquisition compensation received from Delhi Metro Rail Corporation.

Consolidated revenue from operations for Q2 FY27 grew 20 percent year on year to Rs 250.35 crore compared to Rs 207.91 crore in the corresponding period of the previous financial year. Total consolidated income, including other income of Rs 2.29 crore, reached Rs 252.64 crore against Rs 210.90 crore.

Total consolidated expenditure rose 24 percent to Rs 243.95 crore compared to Rs 196.47 crore in Q2 FY26, eroding operating margins. Raw material costs rose 42 percent to Rs 111.78 crore from Rs 78.78 crore in the year-ago period.

Review notes by auditors highlighted that two unreviewed EV subsidiaries, Sterling E-Mobility Solutions and Sterling Advanced Electric Machines, generated a combined net loss after tax of Rs 9.81 crore on revenues of Rs 24.46 crore for the quarter. In addition, comparative figures for Q2 FY26 included the Rs 9.50 crore exceptional DMRC payout.

For H1 FY27, consolidated revenue from operations reached Rs 464.42 crore, up 16 percent from Rs 399.99 crore in H1 FY26. Consolidated net profit for the six-month period fell 66 percent to Rs 8.82 crore from Rs 26.17 crore.