Studds Q1 Revenue Up 13.7% YoY, Margins Decline

Q1 FY27 Consolidated Financial Performance

Studds Accessories Limited reported its unaudited consolidated financial results for the quarter ended June 30, 2026 (Q1 FY27).

Key Financial Metrics:

| Net Revenue from Operations | 169.7 | 149.2 | +13.7% | 167.5 | +1.3% | 634.2 |

| EBITDA | 19.6 | 30.3 | -35.5% | 31.3 | -37.6% | 122.2 |

| EBITDA Margin | 11.5% | 20.3% | - | 18.7% | - | 19.3% |

| Profit After Tax (PAT) | 12.3 | 20.2 | -39.3% | 21.1 | -41.7% | 82.7 |

| PAT Margin | 7.2% | 13.6% | - | 12.6% | - | 13.0% |

Performance Drivers & Challenges:

Revenue growth of 13.7% YoY was supported by stable demand across key segments.
Significant margin contraction occurred due to three primary factors: elevated prices of styrene-based raw materials, incremental wage costs, and a lag in price pass-through to customers.

Management Actions & Outlook:

The company has undertaken a ~9% price hike. The effective realization in Q1 was ~5%, with the balance benefit expected to flow through from Q2 FY27 onwards.
Input costs are improving, as styrene-based raw material prices started moderating from July 2026. The benefit of lower procurement costs is expected to flow through inventory progressively.
Management provided explicit margin guidance: EBITDA margin is expected to recover to ~14-15% in Q2 FY27 and further to ~18-20% in Q4 FY27 on a run-rate basis, subject to stable commodity prices.

Strategic Initiatives and Expansion:

Capacity Addition: A planned addition of 1.5 million helmets per annum is progressing as scheduled and is expected to commence operations by October 2026.
International Expansion: The establishment of operations in Italy is progressing as planned, with commercial operations expected to commence from October 2026.
Strategic Engagement: The company is progressing well on its strategic engagement with Decathlon to strengthen its presence in the organized and institutional segment.

Management Commentary:

Sidhartha Bhushan Khurana, Managing Director, stated that the company remains optimistic about the growth outlook, citing stable underlying demand, ongoing capacity expansion, increasing opportunities in domestic and international markets, and a gradual moderation in raw material prices. He expressed confidence in delivering sustainable growth and improving profitability over the coming quarters.

Corporate Profile

Studds Accessories Limited is India's largest two-wheeler helmet manufacturer with an installed capacity of 9.58 million helmets and boxes across four vertically integrated manufacturing units. The company offers a portfolio of 240+ designs and 19,000+ SKUs, supported by a network of 360+ active distributors in India and serves customers in 70+ international markets.