Synopsis:
Sterling Tools, through its subsidiary SGEM, enters the EV sector by partnering with China’s Landworld Technology to manufacture chargers and converters locally, supporting import substitution and India’s self-reliance in EV components.
During Monday’s trading session, shares of one of the leading automotive component manufacturers in India and the market leader in Motor Control Units surged by around 9 percent on BSE, after entering into a partnership with Landworld Technology Co. Ltd., China, for the local manufacturing of EV Chargers and Converters in India.
At 12:52 p.m., the shares of Sterling Tools Limited were trading in the green at Rs. 346 on BSE, up by around 4.3 percent, as against its previous closing price of Rs. 331.6, with a market cap of Rs. 1,252 crores. The stock has delivered negative returns of nearly 37 percent in the last one year, but has gained by about 8 percent in the last one month.
What’s the News
According to the latest exchange filings, Sterling Tools Limited, through its subsidiary Sterling Gtake E-Mobility Limited (SGEM), has entered the electric vehicle (EV) sector with a focus on On-board Chargers and DC/DC converters for EVs.
SGEM has signed Technology License and Supply agreements with Landworld Technology Co. Ltd., China, to locally manufacture On-board Chargers, DC/DC converters and Multi-Function Units that integrate On-Board Chargers, DC/DC converters, as well as Power Distribution Units (PDUs). These products are essential for the electrification of both passenger and commercial vehicles.
The company will manufacture these components at its EV manufacturing facility in Faridabad. The collaboration is expected to generate around Rs. 450 crores in revenue by FY30 within a market segment projected to reach Rs. 3,000 crores.
By producing these components domestically, Sterling Gtake aims to promote import substitution, supporting the Atmanirbhar Bharat vision and Make in India initiative. This move will enable Indian companies and suppliers to access advanced technology locally, building a self-reliant ecosystem for the automotive industry in India.
EV On-board chargers allow vehicles to connect directly to an AC power source and regulate the voltage and current needed to charge the battery pack. DC/DC converters lower the battery pack voltage to levels suitable for the vehicle’s auxiliary systems. The diversification aligns with Sterling’s goal to build expertise in EV power electronics and expand its product portfolio for the Indian auto industry.
Financials & more
Sterling Tool reported a decline in its revenue from operations, showing a year-on-year decrease of around 32 percent from Rs. 282 crores in Q1 FY25 to Rs. 192 crores in Q1 FY26. Likewise, its net profit decreased during the same period from Rs. 18.4 crores to Rs. 9 crores, representing a fall of around 51 percent YoY.
Sterling Tools Limited is engaged in the business of manufacturing and sale of high-tensile cold-forged automotive fasteners, catering to the passenger cars, two-wheelers, commercial vehicles, agri-equipment, and construction equipment segments.
Through its subsidiary, Sterling Gtake E-Mobility Ltd. (SGEM), the company has ventured into the sunrise EV components sector. SGEM focuses on EV powertrain and power electronics solutions through its technology licensing agreements with Jiangsu Gtake Electric Co. Ltd. (China), Advanced Electric Machines (UK) and now Landworld Technology Co. Ltd. (China). Its product portfolio includes motor control units, magnet-free motors, on-board chargers, off-board chargers and DC/DC convertors.
Written by Shivani Singh
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