Studds Accessories Q1FY27 Revenue up 13.7% to ₹169.7 Cr, Margin Pressured by Raw Material Costs
Studds Accessories reported Q1FY27 consolidated revenue of ₹169.7 crore, up 13.7% YoY. EBITDA margin declined to 11.5% due to raw material costs, with PAT at ₹12.3 crore. Capacity expansion of 1.5 mn helmets/annum is on track for October 2026. International operations in Italy also set to begin October 2026.
The revenue growth is positive, but the significant drop in margins and PAT due to external factors like raw material prices warrants a medium impact. The planned capacity expansion and international growth offer future potential.
While revenue grew, profitability was impacted by rising raw material costs, leading to a decline in EBITDA and PAT. The company anticipates recovery, but the current results show pressure.
Studds Accessories Limited has announced its unaudited standalone and consolidated financial results for the first quarter of FY27, ending June 30, 2026.
The company reported a consolidated Net Revenue from Operations of ₹169.7 crore for Q1FY27, marking a 13.7% year-on-year growth from ₹149.2 crore in Q1FY26. This increase was supported by stable demand across key segments.
However, the EBITDA margin saw a decline to 11.5% in Q1FY27 from 20.3% in Q1FY26. This temporary margin pressure is attributed to elevated styrene-based raw material prices, incremental wage costs, and a lag in price pass-through. The Profit After Tax (PAT) for the quarter stood at ₹12.3 crore, a decrease of 39.3% from ₹20.2 crore in the same period last year.
Looking ahead, Studds expects input costs to moderate, with styrene-based raw material prices showing signs of easing from July onwards. The company has implemented a price hike of approximately 9%, with about 5% effective realization in Q1FY27 and the balance expected to reflect from Q2FY27. Margin recovery is anticipated, with EBITDA margins projected to reach around 14-15% in Q2FY27 and 18-20% in Q4FY27 on a run-rate basis, assuming stable commodity prices.
Sidhartha Bhushan Khurana, Managing Director, expressed optimism about the company's outlook. He highlighted the healthy revenue growth and the strategic initiatives underway. The company is progressing with its planned addition of 1.5 million helmets per annum capacity, expected to commence operations by October 2026. Strategic engagement with Decathlon is also advancing, and international expansion, including operations in Italy, is on track with commercial operations expected to start in October 2026.
Studds Accessories Limited is India's largest two-wheeler helmet manufacturer with a significant global presence, offering a diverse portfolio of over 240 designs and 19,000+ SKUs.
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