Studds Accessories targets 18% growth as it expands into Europe
The helmet maker plans to push capacity to 12 million units while launching an Italian subsidiary to handle regional distribution.
— 1 earlier story on Studds Accessories Ltd. →What's new
- Management targets 17-18% revenue growth for FY27 with EBITDA margins holding at 19.3%.
- Capacity will climb to 12 million helmets over 18 months, starting with 1.5 million units in Q2 FY27.
- A new Italian subsidiary will begin warehousing and distribution operations in mid-Q2 FY27.
Why this matters
Studds is betting that aggressive capacity expansion and a European footprint can sustain its growth trajectory. The 8-9% price hikes suggest the company retains enough pricing power to pass on raw material inflation without sacrificing its 19.3% margin profile.
What we're watching
- Execution of the first 1.5 million unit capacity phase by Q2 FY27.
- The speed of European market penetration via the new Italian entity.
- Whether raw material costs remain stable enough to protect the 19.3% margin target.
The full read
Studds Accessories is scaling up. Management used its Q4 earnings call to outline a roadmap for 17-18% revenue growth in FY27, underpinned by a major capacity push. The company plans to reach 12 million helmets over the next 18 months, with an initial 1.5 million unit increase arriving by Q2 FY27. To protect its 19.3% EBITDA margins, Studds has already pushed through price hikes of 8-9% across its portfolio. Beyond domestic manufacturing, the firm is looking outward. It is setting up an Italian subsidiary to handle European warehousing and distribution, with operations expected to go live in mid-Q2 FY27. The strategy is clear: expand the footprint and raise prices to keep margins steady. Whether the market absorbs the price hikes while the company scales capacity remains the primary test.
Questions answered
- What is the company's revenue growth target for FY27?
- Management has guided for revenue growth of 17-18% for the upcoming fiscal year.
- How does Studds plan to manage rising raw material costs?
- The company has implemented price hikes of 8-9% across its product portfolio to offset these cost increases.
- What is the timeline for the planned capacity expansion?
- Studds intends to reach a total capacity of 12 million helmets over the next 18 months, with the first 1.5 million units coming online in Q2 FY27.
- What is the purpose of the new Italian subsidiary?
- The subsidiary is being incorporated to manage warehousing and distribution in Europe, with operations slated to start in mid-Q2 FY27.
Story so far
All notes on STUDDS →- 29 May 2026 · 4:55 PM IST Studds Accessories targets 18% growth as it expands into Europe
- 5d ago Studds Accessories targets 17-18% revenue growth in FY27