Studds Accessories Q2 Revenue Up 19%, Profit Falls 28% as Costs Outpace Sales

Studds Accessories Limited, the Faridabad-based helmet and accessories maker that also sells under the SMK Helmets brand, reported 19% year-on-year growth in consolidated revenue for the July-September quarter. Net profit fell 28%.

Consolidated results

Revenue from operations was ₹183.1 crore, up 18.6% from ₹154.4 crore a year earlier and 7.9% from ₹169.7 crore in the June quarter. Total income, including ₹3.4 crore of other income, was ₹186.5 crore. Profit before tax fell 25% to ₹20.4 crore from ₹27.2 crore, though it was up 18.7% on the first quarter. Net profit was ₹14.7 crore, down 28.5% from ₹20.6 crore a year ago and up about 20% from ₹12.3 crore in Q1. Total comprehensive income was ₹14.9 crore against ₹20.4 crore. Earnings per share (face value ₹5) were ₹3.75, against ₹5.24 a year earlier and ₹3.12 in Q1.

Costs rose much faster than sales. Total expenses climbed 27.7% to ₹166.1 crore. Materials consumed rose 27% to ₹83.8 crore, or about 45.8% of revenue against 42.8% a year ago. Other expenses rose 28% to ₹57.0 crore, and employee costs rose 18.5% to ₹18.8 crore. Pre-tax margin narrowed to about 11.1% from 17.6%. The tax charge was ₹5.7 crore, including ₹0.35 crore relating to earlier periods.

For April-September, consolidated revenue rose 16.2% to ₹352.8 crore from ₹303.7 crore. Profit before tax fell 31.5% to ₹37.6 crore from ₹54.9 crore, and net profit fell 33.8% to ₹27.0 crore from ₹40.9 crore. Half-year EPS was ₹6.87 against ₹10.38. For all of FY26, the group earned ₹82.7 crore on revenue of ₹634.2 crore, with EPS of ₹21.00.

Standalone results

The parent company's numbers follow the same pattern. Quarterly revenue rose 18.3% to ₹182.5 crore from ₹154.2 crore, while profit before tax fell 24.4% to ₹21.1 crore and net profit fell 27.1% to ₹15.5 crore from ₹21.3 crore. EPS was ₹3.94 against ₹5.40. Materials cost rose to about 46% of revenue from about 43%, and other expenses rose 28.7% to ₹55.3 crore. Other income was ₹3.4 crore. For the half, standalone revenue rose 15.6% to ₹349.4 crore, while profit before tax fell 30% to ₹38.9 crore and net profit fell 31% to ₹28.8 crore. EPS was ₹7.31 against ₹10.60. The gap between standalone and consolidated profit (₹15.5 crore against ₹14.7 crore) reflects the losses at the new Italian subsidiary.

Balance sheet and cash flow

Consolidated total assets were ₹658.2 crore at September 30, against ₹637.6 crore at March 31, and equity was ₹538.3 crore. Borrowings are minimal, at ₹3.7 crore of non-current debt. Trade receivables rose to ₹55.2 crore from ₹41.9 crore, and inventories were steady at ₹74.1 crore. Cash and equivalents fell to ₹54.0 crore from ₹70.3 crore, while other bank balances more than doubled to ₹31.4 crore, from ₹14.3 crore.

The cash flow shows the strain. Net operating cash flow fell to ₹9.8 crore from ₹66.5 crore a year earlier, as a ₹34.4 crore build-up in receivables and other dues and a smaller inflow from payables outweighed profits. The group spent ₹20.9 crore on capital expenditure and paid ₹11.8 crore in dividends. Standalone operating cash flow was ₹10.5 crore against ₹67.0 crore, and standalone cash fell to ₹50.7 crore from ₹70.3 crore.

Overseas push and subsidiaries

On May 22, 2026, Studds incorporated a wholly owned Italian subsidiary, SMK Helmets Europe SRL, with initial capital of ₹3.35 crore (€0.30 million). It has not yet recorded revenue and lost ₹0.97 crore in the quarter and ₹1.87 crore since incorporation. On September 8, the company put a further ₹0.95 crore (US$0.10 million) into its US subsidiary, Bikerz US Inc., which earned revenue of ₹2.65 crore and a profit of ₹0.49 crore in the quarter. For the half, Bikerz US had revenue of ₹6.19 crore and a profit of ₹0.31 crore. The company says the previous year's figures are not strictly comparable because the Italian unit was consolidated only from May 22. The business operates as a single segment, helmets and accessories.

ESOP grant

The board and its Nomination and Remuneration Committee also approved the first grant under the Studds ESOP Scheme 2026, covering 1,30,000 options at an exercise price of ₹334.90. That is a 15% discount to the ₹394.00 NSE close on October 30 and about 0.33% of shares outstanding. The grant uses roughly 44% of the scheme's 2,97,381-option cap. Options vest over one to five years, and the shares will be issued fresh.

Shareholders approved a final FY26 dividend of ₹3 per share, and ₹11.8 crore was paid during the quarter.