Studds Accessories Reports Strong FY26 Growth, Eyes European Expansion

Studds Accessories Limited achieved ₹634.2 crore in revenue for fiscal year 2026, marking an 8.6% increase from the previous year. Profit after tax saw a significant rise of 18.7%, reaching ₹82.7 crore. The company also reported a 16.4% growth in EBITDA to ₹122.2 crore, with its profit margins improving to 19.3% compared to 18.0% in FY25. During the fourth quarter of FY26, net revenue from operations grew 11.9% year-on-year to ₹167.5 crore.

Strong Profit Growth Driven by Margins

Studds Accessories has announced its financial results for the fiscal year 2026, detailing significant year-on-year growth in both revenue and profitability. Key financial achievements include a 16.4% rise in EBITDA to ₹122.2 crore and a substantial 18.7% increase in Profit After Tax to ₹82.7 crore. The company also noted an 11.9% year-on-year revenue growth for the fourth quarter of FY26.

Strategic Expansion Fuels Future Growth

This strong performance highlights Studds Accessories' capability to boost profitability through enhanced operational efficiency and improved margins. The company's planned expansion into the European market and increased manufacturing capacity signal a strategic move aimed at capturing a larger market share and driving future growth.

Foundation for Expansion

The company's consistent performance throughout the last fiscal year has provided a solid foundation for its ambitious expansion plans. The reported improvements in EBITDA margins suggest effective cost management and successful pricing strategies.

Europe Entry and Capacity Boost Planned

Studds is preparing for a significant push into international markets, with operations in Italy scheduled to begin in the second quarter of FY27. This international venture will be supported by a substantial increase in manufacturing capacity. The first phase of this expansion will add 1.5 million helmets annually by Q2 FY27, with an additional 1.5 million helmets planned over the following 15-18 months. This will boost total installed capacity by 30% to 12.5 million helmets. Furthermore, the company will add the globally recognized Alpinestars brand to its private-label helmet offerings.

Raw Material Prices a Watch Point

While the company's outlook is positive, it has noted that raw material prices have been increasing since March. However, Studds currently faces no sourcing challenges.

Key Financial Metrics for FY26

• FY26 Net Revenue from Operations: ₹634.2 crore (up 8.6% YoY)
• FY26 EBITDA: ₹122.2 crore (up 16.4% YoY)
• FY26 Profit After Tax: ₹82.7 crore (up 18.7% YoY)
• Q4 FY26 Net Revenue from Operations: ₹167.5 crore (up 11.9% YoY)
• EBITDA Margin FY26: 19.3% (vs 18.0% in FY25)

Investor Focus Areas

Investors will closely monitor the successful launch of operations in Italy and the initial phase of capacity expansion in Q2 FY27. The progress on the additional 1.5 million helmet capacity and the integration of the Alpinestars brand will be crucial indicators of future performance.