Studds Accessories Limited IPO

31 Oct 2025 , 10:59 AM

Studds Accessories Limited is an Indian manufacturer of two-wheeler helmets and associated accessories. The company was established in 1983 by the Khurana family, with its headquarters in Faridabad, Haryana. Over the last four decades, the company has evolved from a small partnership into a well-known brand with a diverse portfolio and pan-India presence. Its IPO is an offer for sale and is intended to provide liquidity to existing shareholders.

 

Offer details of the IPO

• Total Offer Size – The total size of the offer is INR 455.49 crore and comprises an offer for sale of up to 7,786,120 equity shares.
• The shares being sold by the existing shareholders are held by:
• Madhu Bhushan Khurana – promoter, up to 3,800,000 shares
• Sidhartha Bhushan Khurana – promoter, up to 800,000 shares
• Chand Khurana – promoter‑group member, up to 2,100,000 shares
• Sanjay Leekha – other shareholder, up to 342,000 shares
• Sanjay Leekha , jointly with Charu Leekha – up to 258,000 shares
• Charu Leekha – up to 249,600 shares
• Nisha Leekha – up to 100,800 shares
• Nain Tara Mehta – up to 57,600 shares
• Sunil Kumar Rastogi – up to 36,000 shares
• SE Shoes Private Limited – up to 25,920 shares
• Ajay Kumar Sakhuja – up to 16,200 shares

Price Band: INR 557 to INR 585 per Equity Share

Book‑Running Lead Managers

• ICICI Securities Limited
• IIFL Capital Services Limited (formerly IIFL Securities Limited)
• MUFG Intime India Private Limited (formerly Link Intime India Private Limited)

Two-Wheeler Ancillary Market – Overview

Studds Accessories Limited operates within the two-wheeler ancillary market, a sub-segment of the large motorcycle and allied industry. This sector produces a broad range of safety and convenience products for motorcycles, scooters, and mopeds. Emerging markets are a key growth driver for the 2-wheeler industry. Improving safety regulations and a growing preference for personalised, value-added accessories are driving demand.

Table: Key Segments

Key Segments	Description
Helmets	Safety helmets certified under IS, ECE, and DOT regulations across all displacement categories of riders. The product lines are distributed from entry-level poly‑carbonate shells to integrated ventilation and communication systems under composite‑material premium models.
Two-Wheeler Accessories	All non-helmet products: mirrors, foot‑rests, storage boxes, LED lighting kits, handlebar grips, protective covers, etc. These are sold both as OEM‑fit accessories as well as through after‑market sales.
Export Market	About 10% revenue generation is from exports to 50+ countries in Europe, Africa, the Middle East, and Southeast Asia.
Two-Wheeler Vehicle Segments	Scooters (75-125 cc & 125-250 cc ): These displacements account for more than 80% market share.

Source: RHP

Table: Growth‑Rate Snapshot (Past vs Future)

Metric	Past Growth (FY 2023‑24)	Future Growth (FY 2024‑25 Forecast)	Comment
IIP – Manufacturing of Motor Vehicles & Parts	+10.79 % YoY (as of 1 Apr 2023)	+13.87 % YoY (as of 1 Apr 2024)	The IIP reflects a robust rebound in manufacturing capacity utilisation after the pandemic-induced slowdown, signalling a favourable backdrop for ancillary producers.
Domestic Scooter Sales (Total Units)	+41 % over 2020‑21 → 2023‑24 (47.02 L → 58.84 L)	+13 % YoY projected for 2024‑25 (58.84 L → 66.37 L)	Scooters remain the core growth engine; the 2024‑25 outlook assumes continued consumer shift to fuel-efficient, low-displacement models and expanding rural penetration.
Export Revenue Share	~9 % of total revenue (FY 2023)	~12 % of total revenue (FY 2024‑- 25)	Export growth is driven by new certifications (ECE, DOT) and entry into additional markets in Africa and the Middle East, offsetting modest domestic cyclicality.
Helmets – Domestic Sales Volume	+7 % YoY (FY 2023) – supported by mandatory helmet laws in several states.	+9 % YoY forecast (FY 2024‑- 25) – anticipated rollout of stricter enforcement and higher‑margin premium segments.	Safety‑regulation tightening is a key catalyst; premium‑segment pricing is expected to lift the average selling price.
Two-Wheeler Accessories – After‑market Penetration	+5 % YoY (FY 2023) – driven by rising vehicle age and customisation trends.	+6‑7 % YoY forecast (FY 2024‑25) – bolstered by e-commerce expansion and OEM tie-ups for factory‑fit kits.	After‑market demand is increasingly digital, with online channels contributing > 30 % of accessory sales.

Source: RHP

Take‑away: The two-wheeler ancillary industry has favourable tailwinds. Regulation is driving the increasing adoption of helmets. In addition, growing exports and shifting consumer preferences are added tailwinds.

Studds Accessories Limited – Company Overview

Studds Accessories Limited is an India-headquartered manufacturer of two-wheeler helmets and accessories catering to domestic and export markets. It is founded and managed by key management, including Madhu Bhushan Khurana (Chairman & Managing Director) and Sidhartha Bhushan Khurana (Managing Director). Its headquarters are located in Haryana. The company has a new facility under construction to increase its capacity. Studds collaborates with OEM partners such as TVS Motors and Vespa for helmet supply and product development.

Competitive Positioning

Studds Accessories Limited is a leading Indian manufacturer of two-wheeler helmets and accessories, exporting to over 50 countries. The company’s offerings include full-face, open-face, and flip-up helmets, visors, and riding gear, underpinned by integrated manufacturing capability in Haryana and extensive domestic distribution reach. Studds delivers safety-certified, high-quality products domestically and internationally on the back of strong brand equity, proven manufacturing capabilities, and extensive export reach.

Strengths

• Heritage & Brand Equity: Having a legacy of over 40 years in the two-wheeler segment, the Indian consumers know and trust the brand.
• Integrated Manufacturing Base: Four state-of-the-art Faridabad facilities for moulding, painting, stitching, and bicycle helmets ensure tight control over product quality and cost efficiency
• Export Experience: With a footprint in over 50 countries, the Studds brand has a diversified revenue profile and a wide reach.
• Product Portfolio: Apart from a broad portfolio of Two-wheelers and Bicycle Helmets, the company offers speciality helmets and Helmet-Riding Gear, which allows it to cross-sell across multiple segments.

 Weaknesses

• Fragmented Market: It operates in a highly unorganised helmet industry dominated by large OEMs and MNCs with stronger brands and wider distribution networks.
• Limited R&D Investment: Product innovation depends more on existing engineering know-how than on structured R&D programs.
• Raw Material Sensitivity: Cost pass-through could be limited in price-sensitive segments. Hence, profitability is exposed to fluctuations in polycarbonate and ABS prices.

 

Financial Profile

Robust Revenue Growth: Studds Accessories Limited’s revenue from operations increased from ₹4,991.69 mn in FY 2023 to ₹5,290.23 mn in FY 2024 (+5.98% YoY) and ₹5,838.16 mn in FY 2025 (+10.36% YoY), reflecting a CAGR of ≈8.5% over FY 2023–25. Export revenue grew 82.5% YoY to ₹970.84 mn (16.63% of total revenue) in FY 2025. Domestic sales increased 1.96% YoY, supported by 363 active distributors and presence in 70+ international markets. Revenue expansion was driven by premium helmet demand (SMK brand), a diversified product mix, and operational efficiency.

Better Profitability: EBITDA margin improved from 12.0% in FY 2023 to 18.0% in FY 2025, driven by higher premium helmets on SMK and efficiency gains. Net profit margin increased from 6.6% to 11.9%, demonstrating strong operating leverage. Minimal debt indicated financial stability.

 

Table: KPI Comparison

Company Name	Particulars (with units)	FY 2023	FY 2024	FY 2025	CAGR
Studds Accessories Ltd.	Revenue from Operations (₹ mn)	4,991.69	5,290.23	5,838.16	8 %
	Total Income (₹ mn)	5,064.80	5,358.38	5,958.90	8%
	Revenue Growth (YoY, %)	7.93	5.98	10.36	8 %
	EBITDA (₹ mn)	600.53	901.92	1,048.40	32%
	EBITDA Margin (%)	12.03	17.05	17.96	–
	PAT (₹ mn)	331.48	572.26	696.41	46%
	PAT Margin (%)	6.64	10.82	11.93	–
	RoNW (%)	9.81	14.77	15.49	–
	RoCE (%)	12.81	18.98	20.25	–
	Net Debt / Equity (x)	0.02	(0.07)	(0.07)	–

Source: RHP