Studds Accessories share price is in spotlight today as Q2 profit grows 18% to ₹21 crore, revenue up 6.5%

Studds Accessories share price in spotlight today as Q2 profit grows 18% to ₹21 crore, revenue up 6.5%

Studds Accessories reported a strong Q2 FY26 performance with profit rising 18% to around ₹21 crore and revenue increasing 6.5%. This marks a confident start post-IPO, putting the stock price in focus today as investors react to the encouraging earnings and margin expansion.

Q2 FY26 Financial Highlights

• Consolidated net profit grew to approximately ₹20.6–21 crore, up 18% year-over-year from ₹17.5 crore the previous year.

• Revenue from operations stood at about ₹154.4 crore, reflecting a 6.5% increase year-over-year due to healthy demand and pricing improvements.

• EBITDA reached close to ₹29.9 crore, with a 12% increase year-over-year and an improving EBITDA margin rising from 18.4% to nearly 19.3%.

These results indicate steady top-line growth complemented by improving profitability, signaling operational efficiency and pricing power to investors.

Share Price and Valuation Context

• Since its IPO in early November 2025, where the price band was ₹557–₹585, the stock has largely traded around the issue price, now hovering in the mid-₹550s to ₹570s range.

• The market capitalization is approximately ₹2,100–2,200 crore, placing the stock’s price-to-earnings ratio in the mid-30s, which is a premium valuation compared to typical auto-ancillary peers, reflecting investors’ expectations for growth.

• The stock's 52-week trading range post-listing has been tight between ₹533 and ₹600, showing measured market participation after the listing.

The strong Q2 earnings and margin improvements have reignited interest, particularly from traders looking to capitalize on the company’s first full earnings post-listing.

Business Overview and Growth Drivers

• Studds Accessories Limited is India’s largest two-wheeler helmet manufacturer and one of the global leaders by volume, offering a broad product portfolio under the Studds and SMK brands catering to mass and premium segments.

• Its manufacturing is anchored across four plants in Faridabad, producing helmets, luggage boxes, riding gear, gloves, rain suits, and eyewear, with exports reaching over 70 countries.

• The sector benefits from increasing road safety regulations, growing two-wheeler penetration, and a shift toward branded helmets, all supporting structurally positive growth prospects.

This combination of domestic dominance and global expansion underpins its market leadership and margin gains.

Q2 Operations and Strategic Initiatives

• The management highlighted improved cost efficiencies and a favorable product mix that drove EBITDA margins above 19%.

• Expansion is underway with an additional 1.5 million-unit capacity slated to be operational by Q1 FY27, underlining strong capacity utilization nearing mid-80% levels in helmets and boxes.

• New customer additions like Decathlon and upcoming warehousing plans in Spain highlight the company’s aggressive global distribution and bicycle helmet market capture strategy.

These operational efficiencies and capacity expansions position the company well for sustained future growth.

Post-IPO Positioning and Investor Sentiment

• FY25 showed robust double-digit revenue growth and over 20% PAT growth, building a solid pre-IPO track record.

• Profitability margins improved to around 12%, underscoring better cash generation capabilities.

• Post-IPO, the focus remains on capacity enlargement, global branding, and maintaining financial discipline, which Q2 results affirm with healthy profit growth and margin expansion.

Thus, investors are keeping Studds Accessories under close watch as earnings validate the growth story and reinforce confidence in the stock’s medium-term outlook.