Sterling Tools Limited (STL), a leading automotive fastener manufacturer in India, has achieved a significant milestone in FY25, reporting 10.6% year-on-year (YoY) growth in consolidated total income, crossing the ₹1,000 crore mark. The company's revenue stood at ₹1,038.0 crore in FY25, compared to ₹938.5 crore in FY24, supported by both its core fastener business and its expanding footprint in the electric vehicle (EV) components segment through its 100% subsidiary Sterling Gtake E-Mobility Limited (SGEM).

Consolidated Financial Performance in FY25

STL’s consolidated financials paint a picture of resilient growth and strategic diversification. Here are the standout numbers:

• Total Income: ₹1,038.0 crore in FY25, up 10.6% from ₹938.5 crore in FY24.

• Adjusted EBITDA (excluding ESOP expenses): ₹132.4 crore, up 13.8% from ₹116.3 crore in FY24.

• Adjusted EBITDA Margin: 12.8%, up from 12.4% last year.

• Profit After Tax (PAT): ₹58.3 crore, up 5.3% from ₹55.4 crore in FY24.

• PAT Margin: 5.6% for FY25.

These numbers reflect the strong operational efficiency of STL and the profitability of its growing portfolio.

Standalone Performance Highlights

On a standalone basis, Sterling Tools also showed steady growth:

• Total Income: ₹651.6 crore in FY25, up 6.2% from ₹613.7 crore in FY24.

• EBITDA: ₹94.8 crore, up 4.8% from ₹90.5 crore.

• EBITDA Margin: 14.5%.

• PAT: ₹42.9 crore, up 10.5% from ₹38.8 crore.

• PAT Margin: 6.6%, a slight improvement over 6.3% last year.

The standalone results show that STL’s core automotive fastener business remains strong, with consistent profitability.

Strategic Comments from Management

Commenting on the performance, Atul Aggarwal, Managing Director of Sterling Tools, highlighted that the milestone of crossing ₹1,000 crore in revenue is a result of stable standalone operations and strong growth from SGEM, despite some headwinds in the final quarter.

"We are delighted to achieve this ₹1,000 crore landmark. The focus now is on customer and product diversification, especially in the EV space,” he said.

Q4 Challenges Due to Ola's In-House Production Shift

While FY25 was a strong year overall, Q4 was impacted by a decline in SGEM’s revenue. This was mainly due to Ola Electric’s shift to in-house production of its Gen3 models, affecting component supply volumes from SGEM.

In response, STL is doubling down on product and client diversification strategies, expanding its customer base in both 2W, 3W, and Commercial Vehicles (CVs) segments.

SGEM Signs Game-Changing Technology Licensing Agreement

One of the biggest strategic developments in FY25 was SGEM's Technology Licensing Agreement to develop and manufacture rare earth/permanent magnet-free motors in India.

This breakthrough technology is aimed at:

• Reducing dependence on China for critical EV motor components.

• Gaining first-mover advantage in a niche but fast-growing market.

• Launching environmentally and economically viable alternatives to rare earth magnets.

SGEM also plans to develop integrated motor and controller solutions, strengthening its end-to-end EV component offerings.

Product Pipeline and Future Expansion

SGEM has new Power Electronics products in the pipeline, with at least one major product launch expected soon. Other focus areas include:

• Expanding sales of Motor Control Units (MCUs) across two-wheeler, three-wheeler, and commercial vehicle markets.

• Starting production of HVDC Contactors and Relays by Q2 FY26, in collaboration with Kunshan GLVAC Yuantong New Energy Technology Co. Ltd.

• Advanced talks are underway to form a joint venture with MotiveLink Co. Ltd. (formerly Yongin Electronics) to manufacture magnetic components in India.

These developments indicate STL’s ambition to become a comprehensive EV solution provider in India and beyond.

Atmanirbhar Bharat and Import Substitution Vision

Sterling Tools' growth strategy is closely aligned with the Indian Government’s Atmanirbhar Bharat initiative. By developing indigenous technologies and reducing import dependence, particularly in the EV motor and electronics space, STL is positioning itself as a key contributor to India’s EV ecosystem.

Their strategic partnerships and in-house capabilities will help meet domestic demand, and possibly even enable exports in the future.

Outlook for FY26 and Beyond

Looking ahead, STL expects:

• Standalone business to continue on a high single-digit growth trajectory.

• Consolidated growth to accelerate further with SGEM’s technology-led offerings.

• New products and joint ventures to drive topline and margin expansion.

• Stronger focus on customer diversification, especially in the 2W, 3W, and CV segments.

Conclusion

Sterling Tools’ performance in FY25 reflects a well-executed growth strategy—balancing its legacy fastener business with aggressive expansion in the EV space. By achieving a consolidated revenue of over ₹1,000 crore, signing a pivotal tech licensing agreement, and aligning with the Atmanirbhar Bharat vision, STL is well on its way to becoming a key player in India’s EV component manufacturing landscape.

With a clear focus on innovation, diversification, and strategic partnerships, the company is gearing up to unlock even greater milestones in FY26 and beyond.

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