Studds Accessories LimitedUnclassifiedSTUDDS
Q1 FY27 earnings callStudds Accessories Limited
Margins were severely compressed by a sharp rise in raw material costs, but management expects recovery as price increases take full effect and new growth initiatives like Italy operations and Decathlon ramp up in the second half.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | INR169.7 crores | 13.7% YoY | |
| EBITDA | INR19.6 crores | — | |
| EBITDA Margin | 11.5% | — | |
| PAT | INR12.3 crores | — | |
| PAT Margin | 7.2% | — | |
| Two-Wheeler Helmet & Boxes Volume | 1.95 million units | 8.5% YoY | |
| Capacity Utilization | 81% | — | |
| Helmet ASP | INR845 | — |
TL;DR
- Revenue grew 13.7% year-on-year to INR169.7 crores, but EBITDA margin fell to 11.5% due to a ~65% spike in styrene-based raw material prices.
- Price realizations lagged, with only a 5% effective increase in Q1; a full 9% price hike is expected to be reflected from Q2 onwards.
- New capacity (1.5 million helmets/year), Decathlon partnership, and Italian operations for dealer-direct sales in Europe are expected to start contributing from H2 FY27.
- Management forecasts EBITDA margin improvement to 14-15% in Q2 and a return to the normal run-rate of 18-20% by Q4 FY27, assuming stable raw material prices.
- Export business, at 21% of revenue, is a higher-margin focus area, with an ambition to increase its share to 30%.
Said on the call
“The important part is what we are doing today. What is important for us is that we have not been sitting back and waiting for the commodity cycle to normalize.”
From the Q&A
| Topic | What management said |
|---|---|
| Raw Material Cost Structure | Direct styrene-based raw material consumption is about 36%, with another ~15% indirect; a 35% minimum wage hike in Haryana added ~200 bps to costs. |
| Price Hike Realization | A 9% price hike was taken from the FY26 base, but only 5% was realized in Q1 due to old export orders and timing with OEMs; full 9% realization is expected from Q2. |
| Volume & Revenue Growth | Q1 volume growth was 8.5%; FY27 volume growth is expected to be close to 10%, with revenue growth in the high teens. For FY28, standalone volume growth is guided at 13-14% with 3-4% price realization. |
| Italy Operations Economics | The dealer-direct model in Italy, Germany, and France targets vacant markets; it's expected to incur losses of INR2-2.5 crores in FY27 and FY28, with surplus EBITDA margins of 10-12% expected from the third year. |
| Export Margin Impact | Exports are a higher-margin business; increasing the export mix from 21% towards 30% could potentially improve PAT margins by 200-300 bps from FY26 levels. |
| New Product Revenue | Revenue from Bluetooth systems and riding jackets is expected to be between INR15-20 crores in FY27. |
| Capex Plans | Capex spent till 30th June is about INR76 crores plus INR10 crores in advances; INR7.5 crores was spent in Q1 FY27, with a plan for INR31 crores in FY28. |
| Raw Material Price Path | Styrene peaked at ~INR225 in Q1 and has moderated to a weighted average of ~INR185 for Q2; if prices remain at current elevated levels, PAT margin would be around 11.5-12% versus 13% earlier. |
Guidance
- EBITDA margins expected to improve to 14-15% in Q2 FY27 and reach normal run-rate of 18-20% by Q4 FY27, subject to stable raw material prices.
- FY27 volume growth expected close to 10%, with revenue growth in the high teens.
- FY28 standalone volume growth guided at 13-14%, with 3-4% price realization growth.
Source
Summary written from the transcript filed by Studds Accessories Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 21:19 IST.