Sterling Tools' Q2 FY 2025-26 Quarterly Results

Result Summary

• Sterling Tools Ltd reported a 8.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 26.2%.
• Its expenses for the quarter were up by 7.5% QoQ and down 25.3% YoY.
• The net profit increased 91.2% QoQ and decreased 1.6% YoY.
• The earnings per share (EPS) of Sterling Tools Ltd stood at 4.71 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Sterling Tools Ltd is a company engaged in the manufacturing sector, primarily focusing on the production of high-tensile fasteners. These products are essential components used in various industries, including the automotive sector. Sterling Tools Ltd has established itself as a key player within its niche market by providing reliable and durable fasteners. As of the latest updates, there have been no significant public announcements regarding major developments or strategic shifts within the company. It continues to operate within the industrial manufacturing landscape, catering to a broad clientele base.

Revenue

During Q2FY26, Sterling Tools Ltd reported a total income of ₹210.90 crores, reflecting an 8.2% increase compared to ₹194.97 crores in Q1FY26. When compared to the previous year, Q2FY25, where total income was ₹285.91 crores, there is a noticeable decline of 26.2%. This change in revenue over the year indicates a significant decrease in income generation when measured against the same quarter of the previous fiscal year. The quarter-over-quarter growth suggests a recovery or an improvement in sales or services offered, while the year-over-year decline highlights a challenging period in comparison to the previous year.

Profitability

The profit before tax for Q2FY26 was ₹23.92 crores, showing a substantial increase of 94.8% from ₹12.28 crores in Q1FY26. Compared to Q2FY25, where the profit before tax was ₹23.05 crores, there is a modest increase of 3.8%. The tax expenses for Q2FY26 stood at ₹6.74 crores, which is a 104.9% increase from the previous quarter and a 20.8% rise from Q2FY25. Profit after tax in Q2FY26 was ₹17.19 crores, nearly doubling from Q1FY26's ₹8.99 crores but slightly decreasing by 1.6% compared to ₹17.47 crores in Q2FY25. Earnings per share followed a similar pattern, increasing by 90.7% quarter-over-quarter to ₹4.71, yet showing a slight decrease of 2.1% year-over-year.

Operating Metrics

Total expenses for Q2FY26 amounted to ₹196.47 crores, up by 7.5% from ₹182.68 crores in Q1FY26, yet down by 25.3% when compared to ₹262.85 crores in Q2FY25. This indicates a reduction in operational costs or adjustments in operational scale over the year. The company's operating efficiency can be inferred from the shifts in expenses relative to income, which are mirrored in the changes in profitability metrics. The financial data indicates a significant quarter-over-quarter improvement in profits, with a near doubling in profit before tax and profit after tax. This improvement suggests efficient cost management or increased operational performance compared to the previous quarter.