Sterling Tools Limited, a leading Indian automotive fastener manufacturer and EV component manufacturer through its subsidiary Sterling Gtake E-Mobility Limited (SGEM), released its third-quarter and nine-month results for the fiscal year 2025. The company reported growth in both total income and profit, driven by strong performance in its EV component business and strategic collaborations aimed at localizing production and supporting the Indian government's "Atmanirbhar Bharat" initiative.

Sterling Tools Limited reported a 12.3% year-over-year increase in consolidated total income for the third quarter of FY25, reaching INR 262.7 crore compared to INR 234.0 crore in Q3 FY24. Adjusted EBITDA for the quarter rose by 13.0% year-over-year to INR 31.7 crore, with a margin of 12.1%. Profit after tax for Q3 FY25 stood at INR 13.6 crore.

For the nine-month period of FY25, the company's consolidated total income reached INR 832.3 crore, marking a 24.5% increase compared to INR 668.3 crore in the same period of FY24. Adjusted EBITDA grew by 25.8% to INR 105.9 crore, with a margin of 12.7%. Profit after tax saw a 26.5% increase to INR 49.5 crore, representing a margin of 5.9%.

SGEM growth

This growth was primarily fueled by SGEM, the company's EV component subsidiary, which experienced a 56% revenue increase to INR 345.9 crore in the first nine months of FY25. The standalone business also performed well, achieving 8.9% year-over-year growth in the same period, attributed to increased business with existing customers and the addition of new clients.

Sterling Tools Limited is actively involved in the electric vehicle industry with a strong focus on localization. The company has identified untapped opportunities within the EV sector. To address the evolving demands of this industry, Sterling has engaged in several strategic partnerships.

“During 9M FY25, our consolidated total income grew by 24.5% to Rs 832.3 crore on a YoY basis. The topline growth is mainly driven by SGEM which witnessed a revenue uptick of 56% to Rs 345.9 crore in 9M FY25 against corresponding period last year. The company registered an Adjusted EBITDA growth of 25.8% YoY to Rs 105.9 crore in 9M FY25. Our standalone business continues to exhibit steady performance with topline growth of 8.9% YoY in 9M FY25. The growth is attributable to a higher share of business with existing customers as well as addition of new customers,” stated Atul Aggarwal, Managing Director of Sterling Tools Limited.

Tie-ups

A Memorandum of Understanding (MOU) has been signed with MOTIVELINK Co., Ltd (formerly Yongin Electronics Co. Ltd). This partnership aims to manufacture a comprehensive range of magnetic components for various applications in India's EV and electronics industries.

Through its subsidiary Sterling Tech-Mobility Limited (STML), the company has partnered with Kunshan GLVAC Yuantong New Energy Technology Co. Ltd of China. This collaboration focuses on the production of HVDC Contactors and Relays within India.

Another partnership formed by STML is with Zhejiang Meishuo Electric Technology Co. Ltd., also of China. This collaboration aims to manufacture Latching Relays in India for various sectors, including energy, industrial grids, and other related applications.

Sterling Tools Limited plans to continue exploring new growth opportunities and maintain sustainable performance through both organic growth and strategic initiatives.