Faridabad-based Sterling Tools Ltd is likely to report FY26 revenue of around ₹800 crore, down from about ₹1,000 crore in FY25, according to industry sources aware of the matter, as delays in scaling new mobility programmes and customer shifts weigh on near-term performance. This comes even as the company steps up investments to build out its technology partnerships across EV power electronics and safety systems.
The company plans to invest about ₹100 crore annually over the next two years across different product lines, taking total capital expenditure to over ₹200 crore by FY28, to expand capabilities in fasteners, power electronics and vehicle safety technologies.
Jaideep Wadhwa, Managing Director of the EV arm, Sterling E-Mobility Ltd, said FY26 revenue would be lower than the previous year, attributing the decline to a timing mismatch in programme ramp-ups.
Capex-led pivot builds technology stack
Sterling is using this investment cycle to deepen its presence across the EV and electronics value chain through a set of technology collaborations.
Its existing partnerships in motor control units and power electronics form the base of its EV business, while newer engagements are expanding its play into adjacent segments. Most recently, the company partnered China’s Nanjing Haohang to develop Advanced Rider Assistance Systems (ARAS) for India’s two-wheeler market. This, along with its partnership with Minieye to provide ADAS and driver monitoring solutions, marks the group’s entry into safety and intelligent mobility.
It is also working with Shenzhen-based Landworld Technology on EV solutions for onboard chargers and power conversion, as part of its push into core EV powertrain electronics.
Delays in EV programmes, customer shifts hit revenue
However, parts of this partnership-led build-out have seen delays, affecting near-term revenue visibility.
Programmes have been pushed back by nearly a year, in part due to lower-than-anticipated EV adoption rates, slowing the scale-up of EV charging and power electronics revenues. At the same time, a major two-wheeler customer’s move to advance insourcing of components has impacted volumes.
These factors have created a gap between ongoing investments and revenue realisation.
Strategy intact, timelines shift
Sterling’s broader strategy — spanning fasteners, power electronics and components, as well as active safety products — remains unchanged, though execution timelines have stretched.
The company had earlier targeted a significant shift in revenue mix toward new businesses by FY28. That transition is now expected to take longer as programmes ramp up gradually.
Newer verticals such as ADAS, ARAS and high-voltage DC contactors (HVDC) are still in early stages, with limited contribution expected in the near term.
Expanding into EV electronics
Sterling, India’s second-largest automotive fastener manufacturer, is leveraging its legacy business to expand into EV electronics and mobility technologies.
Through its subsidiary Sterling E-Mobility, the company has established a presence in motor control units, particularly in the high-speed electric two-wheeler segment, providing it with an early foothold in EV electronics.
It is now extending this capability into adjacent areas such as onboard chargers, DC/DC converters and motors. Other subsidiaries are spearheading the entry into vehicle safety systems as well as HVDCs.
Shift to integrated systems
A key element of the company’s strategy is its move from a component supplier to a system-level player.
“We are building competencies so that we can offer integrated solutions rather than standalone components,” Wadhwa said, as the company looks to increase value per vehicle.
The legacy fastener business continues to provide steady cash flows, supporting these investments and enabling access to OEM programmes.
Outlook: recovery hinges on execution
Sterling expects growth to improve as delayed programmes come on stream and partnerships begin to scale.
“We are beginning to see diversification efforts paying off,” Wadhwa said, indicating that demand across new business segments remains intact despite the near-term slowdown.
The pace of recovery will depend on execution timelines and how quickly new programmes translate into revenue.