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Earnings Call Transcript

Studds Accessories Earnings Call Transcript: Key Takeaways

Studds Accessories Q1 FY27 saw 13.7% revenue growth but severe margin compression due to a 65% surge in styrene-based raw material costs.

Guidance and delivery
Management target Revenue 18.0% FY28
Highlights
Revenue growth13.7% YoY growth driven by 1.95 million units sold.
MarginsEBITDA margin fell to 11.5%; recovery to 20% expected by Q4.
Demand visibilityStrong domestic two-wheeler demand and export market expansion.
Management confidenceBalanced; focus on structural recovery and new category launches.

Growth

13.7% YoY revenue growth was volume-led (8.5%) despite inflationary headwinds and temporary margin pressure.

Outlook

EBITDA margins targeted at 14-15% for Q2, returning to 18-20% by Q4 FY27.

Risks

Continued raw material volatility and delayed pass-through to OEMs/CSD channels remain short-term margin risks.

Last quarter's promises, checked

Delivered

  • Guided 17-18% revenue growth → delivered 13.7% (= MISS)
  • Guided price hikes of 8-9% → delivered 9% hike implemented (= BEAT)
  • Guided Decathlon supplies start July 2026 → delivered production start Oct (= PARTIAL)

Partly delivered

  • Guided 12M unit capacity by FY28 → delivered 81% utilization on current base (= PARTIAL)

Missed

  • Guided EBITDA margins broadly similar to 19.3% → delivered 11.5% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: STUDDS. Summary written with AI assistance from the document.

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Studds Accessories Ltd: key numbers

Share price
₹410.00
Market cap
₹1,613 Cr
Revenue (annual)
₹634.2 Cr
Net profit (annual)
₹82.65 Cr
P/E (TTM)
21.6×Sector 33.6×
Promoter holding
61.75%+0.00% QoQ
FII holding
1.48%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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