Studds Accessories Q1 FY27: Revenue up 13.7% to ₹169.7 Cr despite raw material cost surge
Studds Accessories reported Q1 FY27 revenue of ₹169.7 crore, up 13.7% YoY. The company faced margin pressure due to a 65% surge in styrene-based raw material prices but plans a 9% price hike to recover costs. EBITDA margins are expected to improve from 11.5% to 14-15% in Q2 FY27. New capacities and international expansion in Italy are underway.
The announcement details significant strategic initiatives, capacity expansions, international market entry, and product innovations, which are expected to drive future growth. The impact of raw material price volatility and the company's strategy to mitigate it are material to investors.
The company reported healthy revenue growth despite challenges from raw material price increases. Strategic initiatives and planned price hikes indicate a positive outlook for margin recovery and future growth.
Studds Accessories Limited announced its financial results for the quarter ended June 30, 2026 (Q1 FY27), reporting a healthy 13.7% year-on-year growth in revenue to ₹169.7 crore. The company highlighted that the quarter was impacted by a sharp increase in styrene-based raw material prices, which rose by approximately 65% from ₹135 to ₹225 during the period. This led to an effective price realization of around 5% in Q1.
To mitigate the impact of rising raw material costs, Studds has implemented price increases. A 5% price increase was realized in Q1, with expectations of a full price increase of approximately 9% to be reflected from Q2 FY27 onwards as older orders roll off and revised OEM pricing takes effect. The company anticipates that EBITDA margins, which stood at 11.5% in Q1, will improve to between 14% to 15% in Q2 FY27 and reach a normalized 18% to 20% by Q4 FY27, assuming stable raw material prices.
Studds is actively pursuing multiple growth initiatives. These include a 1.5 million helmet additional annual capacity expected to be operational by September/October 2026, and the commencement of commercial production with Decathlon in October 2026. The company is also establishing Italian operations, slated to be fully functional by October 2026, to enhance European market reach and enable a more responsive supply chain. Furthermore, Studds is focusing on product innovation, with the launch of two new helmet models (Ares and Raider Youth) and plans for four to five more products. The company is also developing Bluetooth communication systems, with the first commercial production expected in Q3 FY27, and riding jackets, expected around Q2 FY27.
Consolidated revenue for Q1 FY27 stood at ₹169.7 crore, with EBITDA at ₹19.6 crore (11.5% margin) and PAT at ₹12.3 crore (7.2% margin). Capacity utilization for two-wheeler helmets and boxes was 81%. The company expects overall volume growth of close to 10% for the full year FY27 and anticipates revenue growth in the mid-to-high teens for both FY27 and FY28. The Italian subsidiary is projected to incur losses of ₹2-3 crore in FY27 and ₹4-5 crore in FY28, with profits expected from the third year of operations.
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Studds Accessories Limited filed this with the NSE as a statutory disclosure, categorised under concall scheduled. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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