STUDDS - Studds Accessor.

📊 NSE: STUDDS 🏢 Auto Components & Equipments 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 consolidated revenue grew 6.4% YoY to INR 303.7 Cr. Domestic sales grew 4% YoY (104% of last year), while export sales grew 20% YoY (120% of last year). Q2 FY26 revenue grew 6.5% YoY to INR 154.4 Cr.

Geographic Revenue Split

H1 FY26 revenue split: Domestic market contributed 82.5% (INR 250.55 Cr) and Exports contributed 17.5% (INR 53.15 Cr). In Q2 FY26, Domestic was 86.6% and Exports were 13.4%.

Profitability Margins

H1 FY26 Gross Margin expanded due to product mix. Operating (EBITDA) margin was 19.8% (+193 bps YoY). Net (PAT) margin was 13.5% (+181 bps YoY). FY24 PBILDT margin was 17.62% compared to 12.95% in FY23.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 19.8% (INR 60.2 Cr), up from 17.9% in H1 FY25. Management guidance for full-year FY26 EBITDA margin is between 20% and 21%.

Capital Expenditure

Capital Work-in-Progress (CWIP) stood at INR 45.8 Cr as of September 30, 2025. The company is expanding capacity by 1.5 million units in the first phase, expected to be operational by Q1 FY27.

Credit Rating & Borrowing

CARE A+; Stable for long-term and CARE A1+ for short-term bank facilities. Borrowing costs are minimal as the company has repaid term loans in full; non-current borrowings were only INR 3.4 Cr as of Sep-25.

⚙️ Operational Drivers

Raw Materials

Crude oil derivatives represent approximately 50% of total raw material costs. Other materials include EPS (Expanded Polystyrene) and water transfer decals.

Capacity Expansion

Current installed capacity is ~9 million 2W helmets and boxes. Planned expansion of 1.5 million units (16.6% increase) is underway with a Q1 FY27 operational timeline.

Raw Material Costs

Raw material costs (COGS) were 44-45% in FY21 but spiked to 52% in FY23 due to the shipping crisis. FY24 margins improved to 17.62% due to a reduction in material consumption costs.

Manufacturing Efficiency

Q2 FY26 capacity utilization: 2W helmets and boxes at 92%, EPS at 91%, and water decals at 72%. H1 FY26 utilization was 86%, 84%, and 64% respectively.

Logistics & Distribution

Extensive network of 360+ distributors in India and presence in 70+ countries. Export growth of 20% in H1 FY26 supports higher-margin revenue streams.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through a 1.5 million unit capacity expansion by Q1 FY27, premiumization of the product mix (SMK and O'Neal brands), and deeper penetration in Europe via a new Spanish warehouse.

Products & Services

Motorized helmets, non-motorized helmets, two-wheeler accessories (side boxes), EPS liners, and water transfer decals.

Brand Portfolio

Studds (flagship), SMK, Daytona, and O'Neal.

New Products/Services

Premium protective gear and higher-end helmet designs (240+ designs currently) are expected to drive margin expansion through improved product mix.

Market Expansion

Expansion into newer European geographies and strengthening distribution in existing 70+ countries. Domestic focus on organized segment growth.

Market Share & Ranking

Dominant market position in the Indian helmet industry; one of the top three organized players alongside Steelbird and Vega.

Strategic Alliances

Association with O'Neal for premium segments and diversified OEM clientele.

🌍 External Factors

Industry Trends

Shift from unorganized to organized manufacturing (accelerated by GST) and adoption of higher safety norms in India are driving a 5-10% annual growth in the organized segment.

Competitive Landscape

Intense competition from organized players like Steelbird and Vega, as well as smaller unorganized manufacturers who compete on price.

Competitive Moat

Durable moat through 50 years of brand recall, vertical integration (EPS and decals), and a massive distribution network of 360+ distributors, making it difficult for new entrants to scale.

Macro Economic Sensitivity

Sensitive to two-wheeler industry volumes and consumer discretionary spending on premium safety gear.

Consumer Behavior

Consumers are increasingly upgrading to premium protective gear and prioritizing safety certifications, benefiting established brands like Studds.

Geopolitical Risks

Trade barriers and changes in international safety standards (e.g., European ECE standard changes) can impact export volumes and require product redesign.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian safety standards and European ECE 22.06 standards. GST implementation has historically benefited Studds by impacting unorganized competitors.