Studds Accessories Limited Revenue Rises 18.6% in Q2 FY27

Studds Accessories Limited reported Q2 FY27 revenue of INR183.1 crore, up 18.6% year-on-year from INR154.4 crore, while EBITDA fell 23.7% to INR22.8 crore as higher styrene-based raw-material costs reduced profitability. The company also began commercial production at a new manufacturing facility on October 30, 2026.

What did Studds Accessories report for Q2 FY27?

Studds Accessories reported revenue from operations of INR183.1 crore for the quarter ended September 2026, compared with INR154.4 crore in Q2 FY26. The 18.6% increase was attributed to demand for two-wheeler helmets and boxes, with the company also referring to volume growth and a premiumisation strategy during its Q2 and H1 FY27 update.

Despite higher revenue, profitability declined. EBITDA was INR22.8 crore, down about 23.7% from INR29.9 crore a year earlier, and the EBITDA margin stood at 12.4%. Profit after tax was INR14.7 crore, down about 28.5% year-on-year, with a net profit margin of 8.1%.

Why did Studds Accessories' margins decline despite sales growth?

Studds Accessories said volatility in crude oil prices led to a sharp increase in styrene-based raw-material costs. These costs affected profitability during the quarter, resulting in lower EBITDA and PAT even as the company recorded double-digit revenue growth.

The company stated that it had implemented calibrated price increases to address the input-cost impact. However, the available information indicates that margin recovery depends on raw-material price stabilisation. The Q2 numbers therefore show that sales growth did not fully offset the increase in material costs during the period.

How did Studds Accessories perform in the first half of FY27?

Studds Accessories recorded H1 FY27 revenue from operations of INR352.8 crore, up 16.2% from INR303.7 crore in H1 FY26. The first-half performance reflects continued demand across domestic and international markets, according to the company update.

H1 profitability was lower than the previous year. EBITDA fell 29.6% to INR42.3 crore from INR60.2 crore, while PAT declined 33.8% to INR27.0 crore from INR40.9 crore. The contrast between revenue growth and declining earnings underlines the impact of higher input costs over the six-month period.

What capacity and product initiatives has Studds Accessories announced?

Studds Accessories commenced commercial production at a new manufacturing facility on October 30, 2026. The facility adds annual capacity of 1.5 million units for helmets and boxes, representing an approximately 33% increase over FY26 capacity, based on the company presentation.

The company has also started in-house manufacturing of riding jackets and said Bluetooth-enabled rider communication systems were scheduled for launch in November 2026. These initiatives broaden its offering beyond helmets and boxes into adjacent rider-safety categories. Studds Accessories also incorporated a wholly owned subsidiary in Italy to establish a warehousing and distribution hub for its European business.

What does the update mean for investors and operations?

For investors, the key development is the gap between top-line growth and earnings growth. Revenue expanded in both the quarter and first half, but rising styrene-based raw-material costs reduced EBITDA and PAT. The reported price increases and the path of raw-material costs are therefore relevant to the company’s margin performance.

The new plant increases available production capacity as Studds Accessories expects volume growth of 8% to 10% in FY27, with management indicating a stronger pickup in the second half and a larger jump in Q4. The company has also outlined an export-growth ambition of 20% to 25% over five years and a medium-term revenue aspiration of INR1,000 crore, with exports contributing 25% to 30%.

Conclusion

Studds Accessories delivered 18.6% revenue growth in Q2 FY27 and 16.2% growth in H1 FY27, supported by demand and expanded operations. However, EBITDA and PAT declined as higher styrene-based raw-material costs outweighed the benefit of higher sales, making profitability the central issue in the reported results.

The next points to watch are the utilisation of the new 1.5 million-unit facility, the company’s indicated H2 volume pickup, the November 2026 Bluetooth product launch, and whether price increases and raw-material cost movements support margin recovery.