Studds Accessories Limited Announces Withdrawal of Credit Ratings
Studds Accessories Limited announced on April 3, 2026, that CARE Ratings Limited has withdrawn outstanding ratings of 'CARE A+; Stable/ CARE A 1+' assigned to its bank facilities, effective immediately. This action was taken at the request of Studds Accessories Limited and following receipt of a "No Objection Certificate" from the banks that have extended the facilities.Rating Details
The withdrawal reflects the company's established track record, strong brand recall, leadership position in the helmet industry, and comfortable financial risk profile, marked by no debt outstanding and efficient working capital management. Ratings also factor in the company's robust operational performance, with sustained revenue growth and margin expansion in fiscal year 2025 and the first nine months of fiscal year 2026.
| Facilities/Instruments | Amount (₹ crore) | Rating 1 | Rating Action |
|---|---|---|---|
| Long-term / Short-term bank facilities | - | - | Reaffirmed at CARE A+; Stable / CARE A1+ and Withdrawn |
Key Strengths and Weaknesses
Studds Accessories Limited’s strengths include a dominant market position with ~25% market share in India, a global presence exporting to over 70 countries, and a reputed client base including Honda Motor, Royal Enfield, Hero Motocorp, and Yamaha. The company reported a 9.7% increase in total operating income in fiscal year 2025, rising from ₹531.66 crore to ₹586.57 crore. In the first nine months of fiscal year 2026, revenue stood at ₹463.83 crore, a 6.8% increase from ₹433.91 crore in the same period last year.
The company faces vulnerability to raw material price volatility, as approximately 50% of its raw materials are derived from crude oil. It also faces exposure to competitive pressure from organized and unorganized players in the market.
Financial Performance (₹ crore)
| March 31, 2024 (A) | March 31, 2025 (A) | 9MFY26(UA) | |
|---|---|---|---|
| Total operating income | 531.66 | 586.57 | 463.83 |
| PBILDT* | 93.68 | 109.97 | 91.79 |
| Profit after tax (PAT) | 57.23 | 70.78 | 62.23 |
| Overall gearing (x) | 0.02 | 0.01 | NA |
| Interest coverage (x) | 54.09 | 84.27 | 166.89 |
(*PBILDT: Profit before interest, lease rentals, depreciation and tax)
Liquidity
Studds Accessories Limited maintains strong liquidity, with cash and cash equivalents totaling ₹81.48 crore as of September 30, 2025.
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