Sterling Tools Shares Slip After Mixed Q2 FY27 Results

Shares of Sterling Tools came under pressure after the company announced its second-quarter FY27 numbers on Tuesday. The results showed strong top-line growth but a sharp fall in profit.

For the July to October quarter, the company's standalone profit dropped 31.12 percent annually to Rs 13.63 crore. It had posted Rs 19.79 crore in the year-ago quarter. Compared with the first quarter of FY27, when profit stood at Rs 16.40 crore, the decline was also visible.

The company's operating income, as stated in its exchange filing, grew 32.93 percent year-on-year to Rs 225.89 crore. The previous year's figure was Rs 169.93 crore. Sequentially, the income rose 13.28 percent from Rs 199.40 crore.

The primary factor behind the lower profit was a 35.16 percent annual increase in expenses. These rose to Rs 210.29 crore in the second quarter, up from Rs 155.58 crore a year earlier. Expenses also increased 16.89 percent from the first quarter, when they were Rs 179.89 crore.

Net cash flow for the quarter was negative at Rs 29.25 crore, compared with Rs 9.09 crore in the same quarter of the previous year.

After the results, the stock moved into the red. Around 1:30 pm, it traded 0.54 percent lower at Rs 215.71 on the National Stock Exchange.

The shares had opened higher at Rs 220 and reached an intraday high of Rs 227.46 during trading so far.