Studds Accessories Limited has released its financial results for the second quarter and first half of FY27. The company reported consolidated revenue growth of 18.6% year-on-year for Q2 FY27, reaching INR 183.1 crores. For H1 FY27, consolidated revenue grew by 16.2% to INR 352.8 crores. The company also detailed significant capacity expansion plans, including a new plant becoming operational and further additions planned over the next 18-24 months. New product introductions like riding jackets and Bluetooth communication systems were also highlighted, alongside strong export performance.
Studds Accessories Limited Q2 and H1 FY27 Earnings Conference Call Transcript
Studds Accessories Limited has presented its financial performance for the second quarter (Q2) and the first half (H1) of the financial year 2027. The company highlighted key strategic initiatives including capacity expansion, new product development, and international market growth during its Earnings Conference Call held on November 03, 2026.
Financial Highlights
Q2 FY27 Performance
In Q2 FY27, Studds Accessories Limited reported a consolidated revenue of INR 183.1 crores, marking an increase of 18.6% year-on-year. The EBITDA for the quarter stood at INR 22.8 crores, with an EBITDA margin of 12.4%. Profit After Tax (PAT) for Q2 FY27 was INR 14.7 crores, resulting in a PAT margin of 8.1%. Capacity utilization for 2-wheeler helmets and boxes, EPS, and water decals was reported at approximately 85%, 88%, and 64%, respectively.
H1 FY27 Performance
For the first half of FY27, consolidated revenue reached INR 352.8 crores, an increase of 16.2% year-on-year. EBITDA for H1 FY27 was INR 42.3 crores, with an EBITDA margin of 12%. PAT for the period was INR 27 crores, with a PAT margin of 7.7%. Capacity utilization for 2-wheeler helmets and boxes, EPS, and water decals stood at approximately 83%, 87%, and 65%, respectively.
Strategic Initiatives and Growth Drivers
Capacity Expansion
The company has invested significantly in expanding its manufacturing capabilities. A new plant commenced commercial production on October 30, 2026, adding 1.5 million units of annual helmet and boxes manufacturing capacity. This brings the total installed capacity to approximately 11.5 million units per annum. An additional capacity of 1.5 million units is planned over the next 18 to 24 months, taking the total planned capacity to approximately 12.5 million units. This expansion aims to support future growth and cater to increasing domestic and international demand.
New Product Development
Studds is focusing on expanding its product portfolio beyond helmets. The company has entered the riding jackets category through in-house manufacturing, with production starting in September 2026. Plans are in place to produce 10,000 units by March ’27 and 40,000 units by the next fiscal year. Additionally, a Bluetooth-based rider communication system is set to launch in November 2026, adding a technology-led category to its offerings.
Export Growth and International Presence
International business remains a key priority. Export revenue increased from INR 53.2 crores in FY24 to INR 127.6 crores in FY26. In H1 FY27, export revenue was INR 79.4 crores, a growth of nearly 50% over H1 FY26. The company is deepening its presence in existing markets and expanding into new geographies like Europe, the U.S., and Latin America. A wholly-owned subsidiary in Italy has been incorporated to serve as a warehousing and distribution hub for Europe.
Brand Building and Market Position
Studds is enhancing brand visibility through participation in international events like EICMA in Milan and India Bike Week. The company aims to scale its overall revenue to INR 1,000 crores with exports contributing approximately 25% to 30% in the medium term. The SMK brand continues to show strong acceptance, with its contribution to overall sales increasing from 13% in Q2 FY26 to 20% in Q2 FY27.
Capex and Margins
The company’s capital expenditure (capex) for FY27 is projected to be INR 58.22 crores for the new plant, with a total capex of INR 84.7 crores including regular capex. Margins for new products like jackets and Bluetooth are expected to be in line with helmet margins, with SMK brand margins generally higher than Studds. The company noted that current raw material price pressures have impacted gross margins for both brands, but a price increase of approximately 9% has been implemented, with further adjustments possible if raw material prices remain elevated.
Source: BSE
