Stock Analysis: The only listed company that manufactures Helmets and Two-Wheeler Accessories

Synopsis: Studds Accessories, a ₹1,987 crore market-cap company and the world’s largest helmet manufacturer by volume, with ~27% domestic market share and sales of 7.4 million units, stands out for its export-led growth, regulatory tailwinds, capacity expansion, and improving profitability.

An Indian listed leader in helmets and two-wheeler accessories operates at the intersection of road safety, rising mobility, and regulatory compliance. Backed by strong brand recognition, a wide distribution network, and increasing penetration across domestic and export markets, the company has benefited from growing two-wheeler ownership and stricter safety norms such as mandatory helmet usage. 

With a diversified product portfolio spanning helmets, riding gear, and accessories, it is well positioned to capture long-term demand driven by urbanisation, premiumisation, and increased consumer focus on safety and quality.

Studds Accessories Limited, with a market capitalization of Rs. 1,987.35 crore, closed at Rs. 505 per equity share, down by 0.16 percent from its previous day’s close price of Rs. 505.80 per equity share.

Studds Accessories Limited is an Indian listed manufacturer of two-wheeler helmets and related riding accessories, operating across the mass, mid-premium, and premium segments. As per its Red Herring Prospectus (RHP), the company is the largest two-wheeler helmet player in India by revenue in FY24, highlighting its scale-driven competitive advantage. 

The company designs, manufactures, markets, and sells helmets under its flagship Studds brand and premium SMK brand, while also manufacturing helmets for international brands such as Daytona and O’Neal for markets in the US, Europe, and Australia. As of August 2025, Studds products are sold across 70+ countries, supported by a pan-India distribution network and export-oriented supply chains.

With a price range of Rs. 557 to Rs. 585 per equity share, Studds Accessories launched its initial public offering (IPO). The subscription period was open from October 30 to November 3, 2025. On November 7, 2025, the company’s shares went public on the BSE and NSE platform, initially trading for Rs. 565 each. 

Market Share and Industry Positioning

According to CARE Research data cited in the RHP, Studds held a 27.3 percent market share by volume and 25.5 percent by value in the Indian helmet market in FY24, establishing it as the clear domestic leader. In FY25, Studds sold 7.4 million helmets, reinforcing its position as the world’s largest helmet manufacturer by volume. 

Studds Accessories Limited’s scale, compliance with safety regulations, and ability to serve multiple price points provide it with a structural edge over smaller and unorganised competitors. Studds has Certifications like ISI, DOT, or ECE which play a crucial role in assuring safety, reliability, and quality, particularly for safety conscious riders, enhancing their confidence in the branded products.

Export Performance

Exports have emerged as a critical growth lever for Studds. Export sales accounted for 16.6 percent of revenue in FY25, compared with just over 10.06 percent in FY24. Higher export exposure has materially improved blended realisations, with the company reporting an average selling price of Rs. 1,600 for export helmets versus Rs. 730 in the domestic market. In Q3, the total export revenue was Rs. 29.5 crore (18.1 percent of the total revenue).

To strengthen its European presence, Studds incorporated the wholly owned subsidiary and warehouse in Spain, aimed at reducing delivery timelines from nearly 60 days and improving service levels in key markets including Spain, Colombia, Mexico, Indonesia, and the Philippines. This infrastructure-led approach positions the company for sustained export-led margin expansion. The India–EU free-trade agreement is expected to support long-term export-led growth and competitiveness.

Decathlon Partnership

Studds has onboarded Decathlon as a new customer, with commercial production scheduled to begin in Q4 FY26, initially for the domestic market and subsequently for global supply. The engagement involves manufacturing bicycle helmets and allied products, requiring investments in new moulds during FY26. This partnership marks an important step in Studds Accessories Limited’s diversification beyond two-wheeler helmets and strengthens its presence in the fast-growing bicycle and lifestyle safety segment, leveraging Decathlon’s global distribution network.

Capacity Expansion and Manufacturing Scale

To support rising domestic and export demand, Studds has announced a capacity expansion of 1.5 million units for helmets and boxes in the first phase, expected to be operational by Q2 FY27. As of FY25, the company’s existing manufacturing facilities had an annualised capacity of 9.5 million units, indicating adequate scalability while maintaining operational efficiency. Management has stated that the expansion is designed to provide headroom for future growth initiatives rather than address near-term capacity constraints.

Acquisition and International Presence

As part of its overseas growth strategy, Studds acquired 100 percent stake in Bikerz US Inc. in August 2024 for Rs. 2.56 crore. The acquisition was aimed at strengthening the company’s distribution network in the US market and enhancing geographic diversification. The company has stated that such acquisitions are intended to improve market access and operational synergies rather than materially alter its balance sheet or risk profile.

Regulatory Tailwinds

Studds is positioned to benefit from regulatory developments in India. While current rules mandate one helmet with every new motorcycle sold, a draft notification issued in June 2025 proposes two helmets per motorcycle, potentially doubling incremental demand per vehicle. Although implementation remains subject to state-level enforcement, management expects broader adoption over time. With organised players better equipped to meet compliance and scale requirements, Studds stands to gain disproportionately from stricter enforcement and formalisation of the helmet industry.

Financials

Studds Accessories reported Q3FY26 revenue of Rs. 163 crore, reflecting a 9.4 percent YoY growth over Rs. 149 crore in Q3FY25 and a 5.8 percent QoQ increase from Rs. 154 crore in Q2FY26. The sequential and annual growth indicates steady demand momentum, supported by improving export contribution and stable domestic offtake.

EBITDA for Q3FY26 stood at Rs. 31 crore, up 19.2 percent YoY from Rs. 26 crore in Q3FY25 and 3.3 percent QoQ compared to Rs. 30 crore in Q2FY26, highlighting operating leverage and margin resilience. Profit after tax came in at Rs. 21 crore, registering a strong 31.3 percent YoY growth from Rs. 16 crore, while remaining flat QoQ, suggesting that higher operating gains were largely offset by stable costs and taxes on a sequential basis.

Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 8 percent, a profit CAGR of 35 percent, reflecting both its operational performance and market confidence.

A return on equity (ROE) of about 16.7 percent and a return on capital employed (ROCE) of about 22.6 percent, and debt to equity ratio at 0.02 demonstrate the company’s financial position.

Studds Accessories combines market leadership, export-led premiumisation, and disciplined capacity expansion within a structurally underpenetrated industry. Its dominant domestic market share, growing export contribution, Decathlon partnership, and expanding European infrastructure underline a strategy focused on sustainable growth and margin stability rather than aggressive volume chasing. While the stock continues to trade below its IPO price, the company’s fundamentals reflect a scalable, capital-efficient business with long-term global ambitions.

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Written by Akshay Sanghavi

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