Sterling Tools Reports Rs. 1,038 Crore Revenue for FY25, Up 10.6%

Sterling Tools Limited (STL), a leading Indian automotive fastener manufacturer, has reported a 10.6% year-over-year increase in consolidated total income for the fiscal year ending March 31, 2025. The company's revenue reached Rs. 1,038 crore, compared to Rs. 938.5 crore in the previous year, according to their recently released financial results.

The company's adjusted EBITDA (excluding ESOP expenses) grew by 13.8% year-over-year to Rs. 132.4 crore, with margins expanding to 12.8%. Profit after tax increased by 5.3% to Rs. 58.3 crore, representing a margin of 5.6%.

On a standalone basis, STL achieved a 6.2% revenue growth to Rs. 651.6 crore, with EBITDA increasing by 4.8% to Rs. 94.8 crore. Standalone profit after tax rose by 10.5% to Rs. 42.9 crore, with margins improving to 6.6% from 6.3% in the previous year.

The company's performance was driven by strong growth in its wholly-owned subsidiary, Sterling Gtake E-Mobility Limited (SGEM), which manufactures EV components, combined with stable performance in the core fastener business.

Despite the positive annual results, the fourth quarter performance was affected by a decline in SGEM's revenue, following electric vehicle manufacturer Ola's decision to transition to in-house production for its Gen3 models.

"We are delighted to achieve this Rs. 1,000 crore landmark and look forward to meeting greater milestones in the years to come," said Atul Aggarwal, Managing Director of Sterling Tools Limited. "Despite the strong full-year performance, our Q4 performance was impacted by a decline in our subsidiary SGEM's revenue, following Ola's transition to in-house production for its Gen3 models. The Company has redoubled its ongoing efforts on product and customer diversification."

To address these challenges and drive future growth, SGEM has signed a Technology Licensing Agreement for developing and manufacturing rare earth/permanent magnet-free motors in India. This initiative aims to offer customers an alternative to the China-dependent permanent magnet supply chain.

Additionally, through its subsidiary STML, the company plans to begin production of HVDC Contactors and Relays by the end of Q2 FY26 in partnership with Kunshan GLVAC Yuantong New Energy Technology Co. Ltd. The company is also in advanced discussions to establish a joint venture with MotiveLink Co. Ltd. to manufacture magnetic components in India.

Looking ahead, STL expects its standalone business to maintain high single-digit growth while its strategic initiatives in the EV segment enhance its product portfolio and promote import substitution in alignment with the government's Atmanirbhar Bharat vision.

Established in 1979, Sterling Tools Limited manufactures high tensile cold forged automotive fasteners for various vehicle segments including passenger cars, two-wheelers, commercial vehicles, agricultural equipment, and construction equipment. The company serves leading OEMs in both domestic and international markets.