Studds Accessories Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Studds Accessories Ltd filed with BSE on 14 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
STUDDS Accessories reported Q1 FY27 revenue of Rs 169.7 crores, up 13.7% year-on-year, with EBITDA margin at 11.5% and PAT margin at 7.2%, impacted by a sharp rise in styrene-based raw material prices. Management said a roughly 65% increase in styrene prices during the quarter compressed margins by about 600 basis points, while price hikes taken so far had only reached about 5% realization. The company also described progress on new capacity, the Decathlon partnership, Italian operations, and new product launches including Bluetooth communication systems and riding jackets.
Numbers mentioned
Revenue: INR169.7 crores (Q1 FY27)
p. 3
“we delivered a healthy 13.7% year-on-year growth in revenue to INR169.7 crores in Q1 FY27.”
Sidhartha Khurana, page 3 of the filed PDF · View the filing
EBITDA: INR19.6 crores (Q1 FY27)
p. 5
“EBITDA for the quarter stood at INR19.6 crores with a margin, EBITDA margin of 11.5%.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
PAT: INR12.3 crores (Q1 FY27)
p. 5
“PAT for the quarter stood at INR12.3 crores with a PAT margin of 7.2%.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
Two-wheeler helmet and boxes volume: 1.95 million units (Q1 FY27)
p. 4
“In Q1 FY27, our two-wheeler helmet and boxes production was around 1.95 million units with a utilization of 81%.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Capacity utilization: 81% (Q1 FY27)
p. 5
“Capacity utilization for two-wheeler helmets and boxes stood at approximately 81% for Q1 FY27.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
Helmet ASP: INR845 (Q1 FY27)
p. 5
“Helmet ASP for Q1 FY27 stood at INR845 as compared to INR802 in quarter one financial year '26.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
Styrene raw material price increase: ~65% (Q4 FY26 to Q1 FY27)
p. 3
“the average styrene-based raw material price was around INR135 at the beginning of Q4 FY26, which increased at its peak to approximately INR225 in Q1 FY27.”
Sidhartha Khurana, page 3 of the filed PDF · View the filing
Effective price realization: ~5% (Q1 FY27)
p. 4
“As a result, we saw an effective price realization of around 5% in Q1.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Styrene-based direct raw material consumption: 36%
p. 6
“the styrene-based direct raw material consumption is about 36% and another about 15% could be indirect.”
Sidhartha Khurana, page 6 of the filed PDF · View the filing
Total capex incurred: INR76 crores plus INR10 crores advances (up to June 30, 2026)
p. 12
“Total capex which has happened, it's not only FY27, I'm talking about the total capex which has happened till 30th June is about INR76 crores, plus another INR10 crores of advances which were committed to some of the vendors.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
Capex spent in Q1: INR7.5 crores (Q1 FY27)
p. 12
“That is about INR7.5 crores is what we spent in the first quarter.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
Volume growth: ~8.5% (Q1 FY27)
p. 8
“So that's about 8.5%.”
Sidhartha Khurana, page 8 of the filed PDF · View the filing
Current styrene price: INR185 (Q1 FY27 (current quarter))
p. 13
“At the moment, it is 185, yes, for this quarter.”
Sidhartha Khurana, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 14% to 15% · Q2 FY27
stated conditionally by Sidhartha Khurana
p. 4
“we expect EBITDA margins to improve to between 14% to 15% in Q2 FY27 and reach the normal state of 18% to 20% on a run rate basis by Q4 '27, subject to raw material prices remaining broadly stable.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
EBITDA margin — 18% to 20% · Q4 FY27
stated conditionally by Sidhartha Khurana
p. 4
“we expect EBITDA margins to improve to between 14% to 15% in Q2 FY27 and reach the normal state of 18% to 20% on a run rate basis by Q4 '27, subject to raw material prices remaining broadly stable.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Price realization from raw material pass-through — approximately 9% · from Q2 FY27
stated firmly by Sidhartha Khurana
p. 4
“From Q2 onwards, we expect the full price increase of approximately 9% to be reflected as the earlier price orders progressively roll off and the revised OEM pricing starts flowing through.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Additional manufacturing capacity — 1.5 million helmets · beginning October/September
stated firmly by Sidhartha Khurana
p. 4
“Our first phase of 1.5 million helmets of additional annual capacity is progressing as planned and is expected to become operational beginning October and September.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Decathlon commercial production — October
stated firmly by Sidhartha Khurana
p. 4
“Our engagement with Decathlon is progressing well, and commercial production is expected to commence from October.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Italian operations — October 2026
stated firmly by Sidhartha Khurana
p. 4
“Once our Italy operations become fully functional in October 2026, we will be much closer to the customer.”
Sidhartha Khurana, page 4 of the filed PDF · View the filing
Mesh Bluetooth communication system commercial production — Q3 FY27
stated firmly by Sidhartha Khurana
p. 5
“The prototype is already ready, and we expect the first commercial production to commence in Q3 FY27.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
Riding jacket product availability — Q2 FY27
stated firmly by Sidhartha Khurana
p. 5
“In parallel, our riding jacket product is also progressing well, and we expect this to become commercially available around Q2 FY27.”
Sidhartha Khurana, page 5 of the filed PDF · View the filing
Volume growth — 8% to 10%, closer to 10% · FY27
stated conditionally by Sidhartha Khurana
p. 8
“So, the volume growth estimate for full year would be close to, between 8% and 10%, I think. Minimum. More, actually it is closer to 10%.”
Sidhartha Khurana, page 8 of the filed PDF · View the filing
Revenue growth — mid to high teens · FY28
stated as an aspiration by Sidhartha Khurana
p. 8
“Yes, so FY28 we expect a growth of again mid to high teens.”
Sidhartha Khurana, page 8 of the filed PDF · View the filing
Volume and price growth breakdown — 13% to 14% volume, 3% to 4% price · FY28
stated conditionally by Sidhartha Khurana
p. 8
“So roughly 13% to 14% should come from volume and 3% to 4% should come from price realization for the next year.”
Sidhartha Khurana, page 8 of the filed PDF · View the filing
Italian subsidiary losses — INR2 to INR2.5 crores · FY27
stated conditionally by Sidhartha Khurana
p. 9
“So for financial year '27, '28, we are also looking at a loss between INR2 to INR2.5 crores, not INR4 crores.”
Sidhartha Khurana, page 9 of the filed PDF · View the filing
Italian subsidiary revenue — about EUR1 million · next year (FY28)
stated conditionally by Sidhartha Khurana
p. 9
“next year we expect the revenues to be close to about a EUR1 million.”
Sidhartha Khurana, page 9 of the filed PDF · View the filing
Export mix — closer to 30%
stated as an aspiration by Sidhartha Khurana
p. 11
“our focus is on growing exports as you said, it's about 21% of sales and we intend to take it to closer to 30%.”
Sidhartha Khurana, page 11 of the filed PDF · View the filing
PAT margin uplift from export mix increase — 200 to 300 bps
stated as an aspiration by Sidhartha Khurana
p. 11
“I would not say that if exports were to go at 30%, our PAT margins from 2026 could go up by 200 to 300 bps at least.”
Sidhartha Khurana, page 11 of the filed PDF · View the filing
Bluetooth and jacket revenue contribution — INR15 crores to INR20 crores · FY27
stated conditionally by Sidhartha Khurana
p. 12
“So in the current financial year we expect the volume, the revenue from these 2 categories to be anywhere between INR15 crores to INR20 crores, but going forward it will increase from next year.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
FY28 capex — INR31 crores · FY28
stated firmly by Sidhartha Khurana
p. 12
“FY'28, the plan is INR31 crores.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
PAT margin recovery — back to FY26 levels · Q4 FY27
stated conditionally by Sidhartha Khurana
p. 12
“we're sure that by Q4 of this year, we should be back to where we were in FY26.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Direct styrene-linked consumption is about 36%, with another 15% indirect.
Answered by Sidhartha Khurana
Asked by Rahul Deshmukh: What is the contribution of styrene-based raw materials to the total bill of materials?
p. 6
“the styrene-based direct raw material consumption is about 36% and another about 15% could be indirect.”
Sidhartha Khurana, page 6 of the filed PDF · View the filing
These are markets STUDDS doesn't currently serve directly; margins won't emerge for the first two years, with surplus EBITDA margins of 10-12% expected from year three.
Answered by Sidhartha Khurana
Asked by Manav Jain: Why go dealer-direct in Italy, Germany and France, and what EBITDA margin differential is expected versus the distributor model?
p. 7
“the surplus EBITDA margins could be anywhere between 10% to 12% from the Italian subsidiary.”
Sidhartha Khurana, page 7 of the filed PDF · View the filing
Manpower cost rose due to a 35% increase in Haryana's minimum wage effective April 1.
Answered by Sidhartha Khurana
Asked by Preet Pitani: What drove the 200 bps increase in other expenses?
p. 7
“the manpower cost has gone up by 200 bps. And the main reason for that is, that there was a change in the minimum wages in Haryana from 1st of April.”
Sidhartha Khurana, page 7 of the filed PDF · View the filing
Yes, increases have been received from all OEM customers except one, expected within a week.
Answered by Sidhartha Khurana
Asked by Preet Pitani: Is the manpower cost increase being passed through to OEMs contractually?
p. 7
“we have received increases from all the OEM customers, except one, which we are expecting in next one week.”
Sidhartha Khurana, page 7 of the filed PDF · View the filing
Volume growth was about 8.5%, based on 1.4 lakh units on a base of 17.56 lakh units.
Answered by Sidhartha Khurana
Asked by Preet Pitani: How should the 13.7% revenue growth be split between volume and price?
p. 8
“the volume growth is about 1.4 lakh units on a base of 17.56 lakh units. So that's about 8.5%.”
Sidhartha Khurana, page 8 of the filed PDF · View the filing
Losses are expected to be modest, around Rs 2-3 crores initially, not the Rs 20-50 crores suggested.
Answered by Management
Asked by Preet Pitani: What one-time costs are expected for the Italy/Germany/France launch?
p. 9
“We expect the losses to be maybe INR2 crores to INR3 crores to start with.”
Management, page 9 of the filed PDF · View the filing
The price increase was fully passed through in the GT channel without resistance, and volume growth of 8.5% was seen across channels including GT.
Answered by Sidhartha Khurana
Asked by Rishabh Aggarwal: How was the price increase received in the GT channel, and did it cause volume impact?
p. 10
“we didn't find any resistance in the GT channel in terms of price increase, and that has been completely passed on”
Sidhartha Khurana, page 10 of the filed PDF · View the filing
April was the peak as India lost access to Gulf styrene supply; prices have since softened but not as much as oil prices.
Answered by Sidhartha Khurana
Asked by Rishabh Aggarwal: What is the trajectory of styrene prices, and did the quarter reflect the worst?
p. 10
“The worst of styrene was April.”
Sidhartha Khurana, page 10 of the filed PDF · View the filing
Exports carry higher margins, with SMK exports around 30-35% EBITDA versus domestic STUDDS around 17-18%; a shift to 30% export mix could lift PAT margins 200-300 bps.
Answered by Sidhartha Khurana
Asked by Jay Jain: How should investors think about margin improvement as export mix rises toward 30%?
p. 11
“I can give you a ballpark figure that exports on SMK is more between 30% to 35% EBITDA.”
Sidhartha Khurana, page 11 of the filed PDF · View the filing
Decathlon will function like an OEM relationship; bicycle helmet ASPs are 15-20% lower than motorcycle helmets but are tracked as a separate category.
Answered by Sidhartha Khurana
Asked by Pankesh Agarwal: How should ASP be viewed for the Decathlon institutional relationship versus the premium helmet portfolio?
p. 11
“The ASPs for bicycle helmets are lower than motorcycle helmets by about 15%, 20%.”
Sidhartha Khurana, page 11 of the filed PDF · View the filing
Total capex through June 30 was about Rs 76 crores plus Rs 10 crores in advances, with Rs 7.5 crores spent in Q1 and Rs 31 crores planned for FY28.
Answered by Sidhartha Khurana
Asked by Preet Pitani: What is the FY27 and FY28 capex plan and where is it being spent?
p. 12
“FY'28, the plan is INR31 crores.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
At current elevated raw material levels, PAT margin would be around 11.5-12% versus 13% earlier, with recovery expected by Q4 as raw material prices normalize.
Answered by Sidhartha Khurana
Asked by Preet Pitani: Will the 9% price hike fully offset the raw material cost increase and restore prior gross margins?
p. 12
“we were earlier at 13% PAT. We would be at current levels close to about 11.5% to 12% PAT.”
Sidhartha Khurana, page 12 of the filed PDF · View the filing
Risks flagged
Sharp and rapid increase in styrene-based raw material prices compressing margins
p. 3
“This was an exceptional movement in raw material prices over such a short period of time.”
Sidhartha Khurana, page 3 of the filed PDF · View the filing
Delay in fully realizing price increases across channels, affecting near-term margins
p. 3
“However, the benefit of these price increases takes some time to fully reflect.”
Sidhartha Khurana, page 3 of the filed PDF · View the filing
Increase in manpower costs due to Haryana minimum wage hike
p. 7
“There was an increase of 35%.”
Sidhartha Khurana, page 7 of the filed PDF · View the filing
Styrene supply disruption due to Gulf/Hormuz trade route issues
p. 10
“India imports 98% of its styrene through, Gulf. Now that completely stopped and India had to go to other places to find styrene.”
Sidhartha Khurana, page 10 of the filed PDF · View the filing
Italian operations expected to be loss-making in initial years
p. 9
“next year also it will not be profitable for sure because we'll have to expand our team, but the losses will be not substantial or materialized.”
Sidhartha Khurana, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.