Studds Accessories declines after PAT fall over 39% YoY amid elevated raw material prices

Net revenue from operations rose by 13.7% year-on-year (YoY) to Rs 169.7 crore during the period under review.

EBITDA fell by 35.3% year-on-year (YoY) to Rs 19.6 crore while EBITDA margin contracted by 880 basis points YoY to 11.5% in the June'26 quarter.

The fall in margin was due to elevated styrene-based raw material prices, incremental wage costs and lag in price-pass through. Styrene-based raw material prices have started modera ng from July onwards; benefit of lower procurement costs to progressively flow through inventory, the company said.

Studds has undertaken a price hike of nearly 9% and the effective realisation for Q1 FY27 was approximately 5%, with balance benefit expected to flow through from Q2FY27 onwards.

The company expects the EBITDA margin to be at 14-15% in Q2 FY27 and 18-20% in Q4 FY27 on run rate basis, subject to stable commodity prices.

Profit before tax in Q1 FY27 stood at Rs 17.2 crore, down 37.9% from Rs 27.7 crore in Q1 FY26.

Sidhartha Bhushan Khurana, managing director, said: We remain focused an strengthening our capacity and expanding our growth platforms.

Our planned addition of 1.5 million per annum helmets capacity is progressing as scheduled and is expected to commence operations by October 2026. This capacity addition will provide us with the necessary headroom to cater demand and further strengthen our market position.

We are also progressing well on our strategic engagement with Decathlon, which provides an opportunity to further strengthen our presence in the organised and institutional segment.

In parallel, our international expansion remains firmly on track, with the establishment of our operations in Italy progressing as planned and commercial operations expected to commence from October 2026.

We believe this will enhance our ability to serve international customers more effectively and create a stronger platform for overseas growth. Overall, we remain optimistic about the growth outlook.

Studds Accessories is India?s largest two-wheeler helmet manufacturer and one of the world?s leading helmet and motorcycle accessories brands.

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