Studds Accessories Reports Q1 FY27 Results: Revenue Grows 13.7% Amid Input Cost Pressures
Studds Accessories Limited, identified as India's largest two-wheeler helmet manufacturer and a global leader in motorcycle accessories, announced its consolidated financial results for the quarter ending June 30, 2026. The company reported a 13.7% year-on-year increase in Net Revenue from Operations, although profitability faced temporary challenges due to elevated raw material costs.The detailed Q1 FY27 figures are as follows:
| Particulars (Rs. Cr) | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Net Revenue from Operations | 169.7 | 149.2 | 13.7% |
| EBITDA | 19.6 | 30.3 | -35.5% |
| EBITDA Margin | 11.5% | 20.3% | |
| Profit After Tax | 12.3 | 20.2 | -39.3% |
| Profit After Tax Margin | 7.2% | 13.6% |
The financial performance highlights showed a decline in the EBITDA margin to 11.5%, attributed to high styrene-based raw material prices, incremental wage costs, and a delay in passing these costs through pricing.
Mitigation Efforts and Future Outlook
While profitability saw pressure, management noted that input costs are showing signs of moderation. Styrene-based raw material prices began stabilizing from July onwards, allowing the benefits of lower procurement costs to flow progressively through inventory.The company has initiated pricing actions, including a approximately 9% price hike, which resulted in a ~5% effective realization in Q1 FY27. The remaining benefit is expected to be realized starting from Q2 FY27.
Looking ahead, the EBITDA margin is forecasted to reach between 14-15% in Q2 FY27 and 18-20% by Q4 FY27 on a run rate basis, contingent upon stable commodity prices.
Sidhartha Bhushan Khurana, Managing Director, noted that despite temporary cost pressures, the company remains optimistic about its growth trajectory, citing stable underlying demand across key markets.
Capacity Expansion and Market Strategy
To bolster future market positioning and cater to increasing demand, Studds is progressing with plans for capacity expansion. The planned addition of 1.5 million annual helmet capacity is scheduled to commence operations by October 2026.Strategically, the company is advancing its engagement with Decathlon to strengthen its presence in the organized and institutional segment. Furthermore, international expansion remains on track, with commercial operations at the new facility established in Italy expected to begin from October 2026.
Studds Accessories Limited maintains a significant global footprint. It operates four advanced, vertically integrated manufacturing units, boasting an installed capacity of 9.58 million two-wheeler helmets and boxes. The company offers a diverse portfolio encompassing over 240 designs and 19,000+ SKUs. Its distribution network includes more than 360 active distributors across India, and the brand serves customers in over 70 international markets.
STUDDS Stock Price Movement
On Friday, shares of Studds Accessories Limited slipped by 1.49%, settling at ₹438.75 after opening trading. The stock traded within a range between a day high of ₹451 and a low of ₹435.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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