STUDDS ACCESSORIES LTD

Management reported that the global economic environment remains challenging, but India is supported by strong domestic consumption and infrastructure spending. The company achieved a 13.7% year-on-year revenue growth to INR 169.7 crores in Q1 FY27, despite facing a sharp increase in styrene-based raw material prices. Management noted that the average price of styrene rose significantly, impacting margins, but they took necessary pricing actions to address this. They guided toward an improvement in EBITDA margins to 14%-15% in Q2 FY27 and a return to 18%-20% by Q4 FY27, contingent on stable raw material prices. Management highlighted ongoing initiatives in capacity expansion, product innovation, and international market penetration, including operations in Italy and partnerships with Decathlon. The company aims to diversify its growth engines beyond helmets, focusing on a broader rider safety ecosystem.

Management highlighted both growth opportunities and challenges related to raw material costs.