Studds Accessories Q2 Results: Revenue, margin expands; Announces deal with Decathlon

Faridabad, Haryana-based motorcycle accessories and helmet manufacturer Studds Accessories Ltd. announced its September quarter results after market hours on Wednesday, November 26. The stock will react to these numbers in today's trading session. These were the first numbers declared by the company after its listing earlier this month.

Revenue for the company grew by 6.5% from last year to ₹154.4 crore from ₹145 crore earlier. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 12% on a year-on-year basis to ₹29.9 crore from ₹26.7 crore earlier.

EBITDA margin expanded by 90 basis points to 19.3% from 18.4% last year, while its net profit grew by 17.9% to ₹20.6 crore from ₹17.5 crore during the year-ago period.

For the first half of the financial year, Studds Accessories' revenue grew 6.4%, EBITDA was up 17.9%, while margins expanded by nearly 200 basis points to 19.8%.

The company also announced that it has onboarded Decathlon as a new customer to serve its India requirements for bicycle helmets and allied products. Investments are currently being made in new moulds, with commercial production expected to commence by the end of the fourth quarter of financial year 2026.

To cater to increasing demand, the company will be expanding its capacity for two-wheeler helmets and boxes by 1.5 million units in the first phase, which will be operational by the first quarter of financial year 2027, according to its press release. "This expansion will enhance our ability to service both domestic and export markets while providing headroom for future growth initiatives," Managing Director Sidhartha Bhushan Khurana was quoted as saying.

Studds Accessories' board has also approved the setting up of a new warehouse in Spain to strengthen its distribution in Europe, improve service and support product portfolio expansion.

Shares of Studds Accessories ended 1.2% higher on Wednesday ahead of its results announcement. The stock is still trading below its IPO price of ₹585 per share, having listed at a discount to their issue price.