Analysts/Institutional Investor Meet/Con. Call Updates

Through NEAPS By Listing Centre National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, C-1 Phiroze Jeejeebhoy Towers Bandra–Kurla Complex, Bandra (East) Dalal Street, Fort, Mumbai-400051 Mumbai – 400001 Trading Symbol: STERTOOLS Scrip Code: 530759 Date: 2nd November, 2026 Subject: Transcript of Analyst/ Investor Conference Call Dear Sir/Madam, Pursuant to regulation 30(6) and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a Conference Call for the Analyst / Investors to discuss the Financial and Operational Performance of the Company for second quarter (Q2 & H1 FY27) ended 30th September, 2026 was held on Wednesday, 28th October, 2026 at 11:00 A.M (IST). Following Management Attendees attended the call on behalf of the Company: - 1. Mr. Atul Aggarwal- Managing Director 2. Mr. Jaideep Wadhwa- Director 3. Mr. Anish Agarwal- Director 4. Mr. Amit Dhadda- CFO We hereby further confirm that no unpublished price sensitive information was shared/discussed in the meeting/call. Accordingly, please find attached herewith the transcript of the aforesaid call. The same is being hosted on the website of the Company i.e. www.stlfasteners.com . This is for your information and record purpose. Thanking You, For STERLING TOOLS LIMITED Pragya Saxena Company Secretary & Compliance Officer M No. F9640 REGD OFFICE : DJ-1210, 12th Floor, DLF Tower -B, Jasola District Centre, New Delhi-110025 Email-csec@stlfasteners.com “Sterling Tools Limited Q2 & H1 FY27 Earnings Conference Call” October 28, 2026 “E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on October 28, 2026 will prevail.” MANAGEMENT: MR. ATUL AGGARWAL – MANAGING DIRECTOR MR. JAIDEEP WADHWA – NON-EXECUTIVE NON- INDEPENDENT DIRECTOR MR. ANISH AGARWAL – WHOLE-TIME DIRECTOR MR. AMIT DHADDA – CHIEF FINANCIAL OFFICER SGA – INVESTOR RELATIONS ADVISORS Page 1 of 14 Sterling Tools Limited October 28, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Sterling Tools Limited Q2 H1 FY27 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Atul Aggarwal. Thank you, and over to you, Mr. Aggarwal. Atul Aggarwal: Thank you. Good morning, everybody. Thank you for joining us on the call this morning. Welcome to Sterling Tools Limited's Q2 and H1FY27 Earnings Call. I'm joined today by Mr. Jaideep Wadhwa, Mr. Anish Agarwal and our newly appointed CFO, Mr. Amit Dhadda; and Strategic Growth Advisors, our Investor Relations Advisors. Our earnings presentation has been uploaded on our website and the stock exchanges, and I hope everyone had the opportunity to go through it. I would like to begin with the industry overview. The Indian automobile industry recorded its highest ever second quarter sales across major vehicle segments in Q2 FY27. Domestic sales grew approximately 18% year-on-year to 83.88 lakh units, supported by improved affordability following GST 2.0, healthy rural and urban demand and vehicle replacement. According to SIAM, the industry is expected to maintain positive growth momentum in H2 FY27, supported by festive demand, new launches, infrastructure spending and fleet replacement. However, inflation, potential interest rate increases and geopolitical uncertainties remain important factors to watch. Turning to our performance at a stand-alone level. We are pleased to report our highest ever quarterly and half yearly revenue, along with our highest ever half yearly EBITDA. We have outperformed the broader automobile industry. While industry sales grew by approximately 18% in Q2 FY27, our stand-alone revenue increased by around 32% year-on-year basis. For H1FY27, against industry growth of approximately 20%, our stand-alone revenue grew by around 28%. A key driver has been strong traction in the CV segment, particularly high volumes from a marquee customer. This reflects the benefits of our customer relationships and our continued efforts to diversify across vehicle segments. Our H1 EBITDA increased by 17% year-on-year to INR58.7 crores, whereas for Q2 FY27, EBITDA increased to INR27.7 crores, reflecting a growth of around 8% Y-o-Y. Profit after tax stood at INR13.6 crores in Q2 FY27 compared to INR19.8 crores in Q2 FY26 and INR30 crores in H1FY27 compared to INR30.8 crores in the same period previous year. Page 2 of 14 Sterling Tools Limited October 28, 2026 However, it is important to note that Q2 FY26 and H1 FY26 contain an exceptional gain of INR9.5 crores. While revenue growth has been strong, profitability has faced near-term pressure. As discussed on our previous earnings calls, we exhausted most of our earlier low-cost inventory in Q1. At the same time, commodity and non-commodity input costs have increased significantly amid the ongoing West Asia conflict. Our pricing arrangements with OEMs provide for pass-through of input cost increases. However, these recoveries typically come with a time lag, temporarily affecting margins. As the higher costs are progressively recovered, we expect margins to improve over the coming quarters, subject to input price movements and broader operating environment. We remain focused on strengthening our core fasteners businesses through customer diversification, capacity expansion and disciplined investment. Against our earlier capex plan of INR80 crores for fasteners business, we have already incurred about INR25 crores and our total fastener capex plans within the range of about INR110 crores now. We are also increasing our overall FY27 capex to about INR150 crores across all our businesses of fasteners, DC contactors and MCUs. Our fasteners business continues to provide a strong foundation for the group, supported by the healthy demand, expanding customer relationships and a continued focus on operational execution. Moving to SEM, Sterling E-Mobility Solutions Limited. Revenue from this business stood at approximately INR23 crores in Q2 FY27, taking H1FY27 revenue to around INR37 crores. This quarterly growth has primarily come from higher volumes and new customer additions. The business has made encouraging progress, particularly in the commercial vehicle and light commercial vehicle segments. Our focus remains on higher-value applications and expanding our presence in commercial vehicles. The production lines for onboard chargers and multifunction units scheduled for commissioning in Q2 has been commissioned as planned. Our priorities remain increasing volumes, broadening the customer base and strengthening the position in higher-value electric mobility solutions. At STML, Sterling Tech-Mobility Limited, we have made steady progress in commercializing our high-voltage DC contactors and relays business. Commercial supplies, which were scheduled to begin in Q2 FY27, have now commenced. This marks an important milestone as we move from development towards commercial execution. To conclude, our fasteners business remains at the core of Sterling Tools' growth strategy. Long- standing customer relationships, opportunities across vehicle segments, customer diversification and planned capacity investments position us to pursue the next phase of growth. While near-term input cost pressures have affected profitability, we remain focused on execution, disciplined c [Showing first 8,000 characters — download PDF for full document]