Studds Accessories IPO: India’s Largest Helmet Maker Rides Toward Market Debut

Introduction

The Indian IPO market is gearing up for another prominent listing with Studds Accessories Limited, India’s largest manufacturer of two-wheeler helmets and motorcycle accessories. Backed by nearly five decades of industry experience, the company is launching an IPO worth ₹455.49 crore, entirely through an Offer for Sale. The listing marks an important milestone for India’s automotive accessories sector, bringing a homegrown safety-gear brand with a strong global footprint to the public markets. Here’s a closer look at Studds Accessories – its business, financial performance, issue details, and what the IPO means for investors.

IPO Details

Source: BSE | Chittorgarh

Business Overview

Studds Accessories Limited (SAL), incorporated in 1975 and headquartered in Faridabad, Haryana, is India’s largest manufacturer of two-wheeler helmets and motorcycle accessories. The company designs, manufactures, and markets products under two flagship brands-“Studds” and “SMK”-that cater to diverse consumer segments in India and overseas.

Its product portfolio spans helmets, riding jackets, gloves, two-wheeler luggage, eyewear, rain suits, and helmet security guards, all sold under the Studds brand. With four manufacturing facilities in Faridabad and an annualized production capacity of 9.04 million helmets as of March 31, 2025, the company sold 7.40 million units in FY2025. Studds exports to over 70 countries across the Americas, Asia, Europe, and other regions and also supplies helmets for global brands such as Daytona and O’Neal. With nearly five decades of experience, Studds combines safety, innovation, and scale to serve riders worldwide.

Industry Context

India’s two-wheeler helmet industry is witnessing steady growth, supported by rising urbanisation, increasing two-wheeler ownership, and mandatory helmet-use regulations. The demand for certified and branded helmets has expanded in recent years as consumers prioritise safety, comfort, and design.

Key industry factors:

• Safety Regulations: Government mandates on helmet usage continue to drive demand in both urban and rural markets.
• Two-Wheeler Market Growth: A consistent rise in motorcycle and scooter sales supports volume expansion for helmet manufacturers.
• Product Diversification: Manufacturers are broadening product lines to include riding gear and accessories.
• Export Opportunity: Indian helmet makers are expanding their global footprint, supported by cost efficiency and compliance with international standards.
• Technological Advancement: Companies are incorporating improved materials and manufacturing processes to enhance safety and quality.

Studds Accessories Limited, with its established brands, manufacturing capacity, and global presence, operates within this expanding segment of India’s two-wheeler safety gear industry.

Business Strengths

• Established Market Leadership
  India’s largest two-wheeler helmet manufacturer by revenue and the world’s largest by volume, with nearly five decades of operational experience.
• Recognised Brands
  Owns and markets two flagship brands – “Studds” and “SMK” – both with a strong domestic and international presence across more than 70 countries.
• Extensive Product Portfolio
  Offers helmets and motorcycle accessories including luggage, gloves, eyewear, rain suits, riding jackets, and helmet security guards.
• Integrated Manufacturing Capabilities
  Operates four manufacturing facilities in Faridabad, with a combined annualised production capacity of 9.04 million helmets as of March 31, 2025.
• Global Distribution Network
  Sells through 363 active distributors in India and exports to key international markets across the Americas, Asia, Europe, and other regions.

Risks and Challenges

While the company maintains a leading position in the helmet and accessories market, certain risks merit attention:

• Margin Variability: Profitability may be affected by fluctuations in raw material costs, particularly for polymers and paints used in helmet production.
• Competitive Landscape: The company faces competition from both domestic and international helmet manufacturers, as well as unorganised sector players.
• Regulatory Compliance: Compliance with safety and quality standards across multiple geographies requires continuous monitoring and certification.
• Export Dependence: With a significant share of revenue derived from overseas markets, the company remains exposed to currency movements and international trade regulations.
• Demand Sensitivity: Sales volumes are linked to overall two-wheeler demand, which may be influenced by economic conditions and fuel price trends.

Financial Performance

• Revenue Growth: Revenue from operations increased to ₹595.89 crore in FY25 from ₹535.84 crore in FY24, reflecting consistent year-on-year growth.
• Profitability: Net profit rose to ₹69.64 crore in FY25 from ₹57.23 crore in FY24, with a PAT margin of 11.93%.
• Operational Efficiency: EBITDA stood at ₹104.84 crore in FY25, up from ₹90.19 crore in FY24, indicating improved operating performance.
• Q1 FY26 Update: For the quarter ended June 30, 2025, the company reported a net profit of ₹20.25 crore on revenue of ₹152.01 crore.
• Capital Efficiency: ROCE stood at 20.25% in FY25, supported by strong return metrics and low leverage.

Source: RHP

Valuation Expectations: At the upper end of the price band, Studds Accessories Limited is valued at around ₹2,302 crore, indicating a fully priced issue based on its recent financial performance and earnings multiples.

Investor Sentiment

The Studds Accessories IPO is regarded as a notable offering in the automotive accessories segment for several key reasons:

• Market Leadership: India’s largest manufacturer of two-wheeler helmets and the world’s largest by volume, with a strong presence across domestic and export markets.
• Established Brands: Operates two well-recognised brands – “Studds” and “SMK” – catering to diverse consumer segments and price ranges.
• Consistent Financial Performance: Steady growth in revenue and profitability over recent fiscals, supported by operational efficiency and scale.

With its established market position, diversified product range, and global reach, the IPO is expected to attract interest from both institutional and retail investors.

Valuation & Peer Comparison

As per the offer document, Studds Accessories Limited has no directly listed peers in the Indian market for comparison. The company operates in a niche segment within the automotive accessories industry, primarily focused on helmets and related products.

Based on its FY25 earnings, the IPO is priced at a P/E of 33.05x, while on an annualised FY26 basis, it stands at 28.43x. The price-to-book value is 4.90, and the market capitalisation at the upper price band is ₹2,302.17 crore.

The valuation reflects the company’s market leadership, consistent growth, and established brand presence in both domestic and international markets.

Conclusion

The Studds Accessories IPO marks a significant listing in India’s automotive accessories sector. For the company, it represents the market debut of the country’s largest two-wheeler helmet manufacturer with a strong international footprint. For investors, it provides exposure to an established brand portfolio in a regulated and steadily expanding safety gear segment. While the issue is entirely an Offer for Sale and appears fully priced based on recent financials, Studds’ scale, consistent performance, and established market position underscore its standing within the industry. The IPO is likely to see interest from investors when it opens for subscription in October.

Source: DRHP, RHP

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