Sterling E-Mobility Records Rs 9.81 Crore Loss in Q2, Highlights EV Market Struggles

Sterling E‑Mobility’s two unreviewed EV arms—Sterling E‑Mobility Solutions and Sterling Advanced Electric Machines—combined for a Rs 9.81 crore loss in Q2 FY27, even as they generated Rs 24.46 crore in revenue. The hit comes on top of a 42‑percent jump in raw material costs, pushing the cost base to Rs 111.78 crore from Rs 78.78 crore a year earlier.

The loss is offset only slightly by a Rs 2.29 crore other‑income stream, raising the consolidated income to Rs 252.64 crore for the quarter. Yet total expenditure climbed 24 percent to Rs 243.95 crore, eroding operating margins and forcing the parent company to rethink its EV strategy.

In an industry where Tata Motors and Mahindra Electric have been pushing for higher margins, Sterling’s numbers expose the volatility of early‑stage EV ventures. While the parent’s standalone profit slid 66 percent year‑on‑year to Rs 8.82 crore, the EV units’ losses indicate that scaling production and securing cost‑competent supply chains remain a hurdle.

What follows is a watch list: will Sterling roll out a restructuring plan? Will policy shifts—like reduced import duties on battery components—help turn the tide? The next quarterly report will reveal whether the company can reverse the trend before it impacts its broader tooling business.