Sterling Tools CapEx Plan Targets FY 2027 Manufacturing Expansion

FY 2027 CapEx to Expand Fastener Manufacturing

Sterling Tools Limited has outlined an INR 800 million CapEx plan for FY 2027, ending March 2027, to expand its fastener manufacturing facilities in Bengaluru and the National Capital Region (NCR). The investment is intended to increase manufacturing capacity at the company’s existing facilities as it responds to customer requirements and supports future business growth. Sterling Tools also expects additional balancing CapEx of INR 250 million to INR 300 million in FY 2028. The planned spending therefore extends beyond the initial FY 2027 investment and indicates a phased approach to capacity expansion and facility requirements across the company’s fastener manufacturing operations.

EV Manufacturing Programs Move Toward Commercial Supply

Sterling E-Mobility is also strengthening its electric-vehicle business through new manufacturing programs moving toward commercial production. The subsidiary plans to commission production lines for onboard chargers and multifunction units in Q2 FY 2027. Following customer trials, commercial supplies are expected to begin between December 2026 and January 2027. The planned production ramp-up gives the subsidiary a defined path from line commissioning and customer validation to commercial supply, while expanding Sterling Tools’ participation in EV-related electronic and electrical systems. The programs complement the company’s broader investment in manufacturing capabilities across its portfolio.

High-Voltage Component Programs Target Import Substitution

Meanwhile, Sterling Tech-Mobility has secured seven customer programs for high-voltage DC contactors and relays developed with GLVAC in Bengaluru. Commercial production for these programs is scheduled to launch in Q2 FY 2027. The company is targeting import substitution initially, with plans to subsequently enter export markets. The program therefore adds another EV-focused manufacturing opportunity alongside onboard chargers and multifunction units, while concentrating on high-voltage components used in electric vehicles. Together, the subsidiary initiatives broaden Sterling Tools’ EV presence from charging-related systems to high-voltage switching components and create a pathway from customer programs to commercial production and, later, international markets.

Frequently Asked Questions

What is Sterling Tools planning to invest in FY 2027?
Sterling Tools plans to invest INR 800 million in FY 2027 to expand its fastener manufacturing facilities in Bengaluru and the National Capital Region, with further balancing investment expected in the following fiscal year. The company expects an additional INR 250 million to INR 300 million of balancing CapEx in FY 2028. The investment program is focused on expanding manufacturing facilities and supporting capacity requirements as the company develops its business and responds to customer demand across its operations.

When will Sterling E-Mobility begin commercial production?
Sterling E-Mobility plans to commission production lines for onboard chargers and multifunction units in Q2 FY 2027. Commercial supplies are expected to begin between December 2026 and January 2027 after customer trials are completed. The sequence involves commissioning the production lines, completing customer validation activities and then moving into commercial supply. These programs represent an expansion of Sterling Tools’ EV-related manufacturing activities through its subsidiary and add onboard charging and multifunction-unit capabilities to its electric-mobility portfolio.

What are Sterling Tech-Mobility’s EV component plans?
Sterling Tech-Mobility has secured seven customer programs for high-voltage DC contactors and relays developed with GLVAC in Bengaluru. Commercial production is scheduled to begin in Q2 FY 2027. The initial strategic objective is import substitution, allowing the company to address demand for high-voltage EV components before expanding into export markets. The programs broaden Sterling Tools’ EV exposure beyond onboard chargers and multifunction units, creating an additional manufacturing opportunity in high-voltage switching components while establishing a potential pathway toward international sales.