Studds Accessories Limited: Riding High on Premiumisation and Global Expansion

Studds Accessories Limited, a prominent player in the two-wheeler helmet and accessories market, has unveiled its financial results for the quarter and nine months ended December 31, 2025. The company reported a robust performance, driven by strategic initiatives focused on premiumisation, global expansion, and operational efficiencies. For the nine-month period, consolidated revenue from operations grew by 7.5% year-over-year to INR 466.7 crore. This growth was complemented by a significant 18.5% increase in EBITDA, reaching INR 90.9 crore, with margins expanding to 19.5%. Profit after tax (PAT) also saw a healthy rise of 23.9% year-over-year, totaling INR 61.6 crore, reflecting strong profitability.

The company's performance in Q3 FY26 was particularly noteworthy, with revenue from operations growing 9.4% year-over-year to INR 163.0 crore. Gross margins improved to 61.4% from 56.8% in the previous year, primarily due to favorable raw material prices and enhanced procurement efficiency. EBITDA for the quarter stood at INR 30.7 crore, a 20.1% increase year-over-year, with EBITDA margins at 18.8%. PAT for Q3 FY26 surged by 26.3% year-over-year to INR 20.7 crore, with PAT margins at 12.7%. This consistent growth underscores Studds' ability to scale responsibly while protecting its margins and product quality.

Strategic Thrusts: Premiumisation and Global Reach

Studds' strategic approach is anchored around three core pillars: brand-led demand creation, efficient manufacturing, and disciplined execution. The company's product mix for 9MFY26 highlights its diverse portfolio: Studds Helmets accounted for 75.4% of revenue (INR 351.98 crore), SMK Helmets 14.4% (INR 67.2 crore), Daytona & Oneal 2.9% (INR 13.53 crore), and Other Accessories 7.3% (INR 34.07 crore). This mix reflects a deliberate shift towards premium offerings, particularly with the SMK brand, which boasts higher profitability and average selling prices (ASPs).

Management emphasized the ongoing premiumisation wave in the helmet industry, both domestically and globally. The company aims to increase SMK's contribution to total revenue from the current 13% to 25% within the next two to three years. This focus is supported by continuous investment in design, safety, and premium features, ensuring new launches are market-relevant and margin-accretive. Studds is also diversifying into niche products like bicycle helmets, two-wheeler luggage, and apparel, targeting higher margins from these segments.

Expanding Footprint: Capacity and International Markets

To support its growth ambitions, Studds is undertaking a significant capacity expansion at its Faridabad Facility 5. This project, with an estimated Capex of INR 150 crore, will add 3 million units of capacity for two-wheeler helmets and boxes. Phase I, contributing 1.5 million units, is now expected to be operational by Q2FY27. The initial timeline for Q1FY27 was deferred by one quarter due to temporary pollution-related construction restrictions in the Delhi-NCR region. Despite this delay, management stated that the company has optimized its production process and added additional machinery to produce an extra 5 lakh units annually, ensuring ongoing demand is met.

Internationally, Studds is making strategic inroads into Europe with the planned incorporation of a wholly-owned subsidiary in Spain. This entity, expected to commence commercial operations in Q1FY27, will serve as a warehouse and distribution arm, enhancing proximity to European customers and improving turnaround times. The company aims to reach 300,000 helmet sales in Europe within the next two to three years. The India-EU free-trade agreement is also anticipated to provide a significant long-term tailwind, supporting export-led growth. Studds is also strengthening its distribution and digital channels, investing in online presence and digital infrastructure to deliver an integrated online-offline shopping experience and increase brand visibility.

Outlook and Management Commentary

Management expressed confidence in maintaining healthy EBITDA margins, driven by a favorable product mix and continued premiumisation. They expect revenues to be higher in Q4 FY26 compared to Q3 FY26 and aim to increase the blended ASP for helmets beyond INR 800 next year. The company's disciplined capital deployment, focus on margin expansion, and international diversification are key to driving sustainable and profitable growth. Studds Accessories Limited remains committed to its long-term strategic priorities, navigating external factors while continuing to invest in brand building, R&D, and expanding its global footprint.