Sterling Tools has seen a 6% increase in its stock price after announcing a partnership with the UK-based company AEM to produce magnet-free traction motors for electric vehicles (EVs). This deal will be carried out through Sterling Tools’ subsidiary, Sterling Gtake (SGEM), which will develop, manufacture, and sell these motors. The production will take place at Sterling’s factory in Faridabad.
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SGEM plans to introduce a new technology for making motors without rare earth magnets, which are typically sourced from China. This move is expected to help SGEM offer a solution that reduces dependency on this supply chain. The company believes this new technology will be a commercially successful and long-term alternative for EV manufacturers.
As part of the deal, SGEM will focus on the rapidly growing market for traction motors, which is expected to be worth around Rs 15,000 crore by 2030. They also plan to develop integrated motor and controller solutions, which combine both parts into one system.
Anil Aggarwal, chairman of Sterling Tools, said, “This move into rare earth magnet-free motors shows our commitment to leading the industry with new technology. We’re expanding our offerings and responding to the growing demand for advanced technology in the electric vehicle sector. Our goal is to provide customers with complete solutions, including integrated motors and controllers.”
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In addition to this announcement, Sterling Tools has shared its financial results for the quarter and the year ending March 31, 2025. The company reported a 45.8% drop in net profit, which fell to Rs 8.8 crore. Total income also declined by 23.9%, reaching Rs 205.7 crore in Q4 FY25, compared to the same period in FY24. However, Sterling’s EBITDA margin, a measure of profit, improved slightly, rising by 0.1% to 11.9%.
Sterling Tools is known for manufacturing high-quality fasteners used in the automotive, two-wheeler, commercial vehicle, agriculture equipment, and construction industries. The company works with leading original equipment manufacturers (OEMs) in India and abroad.
