Is Studds Accessories IPO Good or Bad – Detailed Review

Studds Accessories Limited’s IPO is set to open its initial public offering from October 30, 2025, to November 03, 2025. When considering applying for this IPO, potential investors might have questions about whether the Studds Accessories IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive Studds Accessories IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision.

Studds Accessories IPO Review

Studds Accessories Limited's IPO is open for subscription from October 30, 2025, to November 03, 2025, with listing expected on November 07, 2025, on NSE and BSE. The company is a market leader in two-wheeler safety gear with a legacy spanning nearly five decades, specializing in the manufacture, design, and global sale of helmets and motorcycle accessories. It is the largest two-wheeler helmets player in India by revenue (FY24) and the world's largest by volume (CY24). The company leverages a dual-brand strategy with the mass and mid-market 'Studds' and the premium 'SMK'. The core business is highly concentrated in two-wheeler helmets, which constituted 92.81% of its revenue as of June 30, 2025. It operates a vertically integrated business model with an in-house VCA-certified testing laboratory. The company utilizes a vast domestic distribution network of 363 active distributors and exports to over 70 countries. It sold approximately 7.40 million helmets in Fiscal 2025.

The company operates within the Indian Two-Wheeler Helmet Market, a high-growth sector valued at Rs 2,080 crores in CY2024. The market is projected to grow at a CAGR of 8.7% in value terms (CY24-CY29) to Rs 3,150 crores, driven by stricter regulatory enforcement, rising disposable incomes, and increasing safety awareness. The ongoing shift toward mandatory BIS certification is aggressively consolidating the market towards the organized sector, which is projected to exceed 80% by CY29. Crucially, the premium segment, targeted by the 'SMK' brand, is estimated to grow to 10% of the total market value by Fiscal 2029.

Studds Accessories' financial performance from FY23 to FY25 reflects robust top-line growth and consistently increasing profitability. Revenue from Operations grew from Rs 499.17 crore in FY23 to Rs 583.82 crore in FY25, an 8.1% CAGR over the period. Profit After Tax (PAT) grew strongly to Rs 69.64 crore in FY25, achieving an 11.93% PAT Margin. Operating efficiency is high, with the EBITDA Margin improving consistently to a robust 17.96% in FY25. The company maintains superior capital efficiency, evidenced by the Return on Capital Employed (RoCE) improving significantly to 20.25% in FY25, reinforcing its strong financial health and minimal debt exposure with a Net Debt to Equity Ratio of (0.07) in FY25.

Key strengths include Market Leadership and Brand Command being the largest player in India and globally by volume, Capital Efficiency and Financial Robustness with 20.25% RoCE and low debt levels, Vertically Integrated Operations and Quality Control with in-house VCA-certified testing, Extensive Distribution and Global Reach with exports to 70 countries, and Favourable Regulatory Tailwinds with BIS compliance driving consolidation. Risks involve Revenue and Product Concentration Risk with 92.81% from helmets, Geographic Manufacturing Concentration Risk with all facilities situated in Faridabad, Haryana, Raw Material Price and Supply Volatility for ABS and polycarbonate, and Failure to Maintain and Evolve Brands.

The IPO is entirely an Offer for Sale (OFS) of 77,86,120 shares, aggregating Rs 455.49 crores. Consequently, the entire proceeds will go to the selling shareholders (Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, and others). Shares are priced in the band of Rs 557 to Rs 585 per share, with a Lot Size of 25 Shares.

Company Overview of Studds Accessories IPO

Studds Accessories Limited, a market leader in two-wheeler safety gear with a legacy spanning nearly five decades, specialises in the design, manufacture, and global sale of helmets and motorcycle accessories. They sell helmets under two established brands, the mass and mid-market 'Studds' and the premium 'SMK'. The company is the largest two-wheeler helmets player in India by revenue in Fiscal 2024 and the world's largest by volume in Calendar Year 2024.

Its core business focus is on two-wheeler helmets, which constituted 92.81% of its revenue from operations for the three months ended June 30, 2025. The diversified product portfolio of over 240 different styles includes full-face, flip-up, open face, and off-road helmets, along with motorcycle accessories such as two-wheeler luggage, gloves, rain suits, riding jackets, and eyewear. The company sold approximately 7.40 million helmets in Fiscal 2025. The core operational strength is built around a vertically integrated business model and a continual commitment to safety, demonstrated by its in-house testing laboratory certified by the Vehicle Certification Agency (VCA), England, and compliance with global safety standards like ECE.

The company operates a highly penetrated distribution network across India and leverages its international presence, exporting to more than 70 countries across the Americas, Asia, and Europe. As of August 31, 2025, the domestic network includes 363 active distributors. The promoters, Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, together hold a near 70% stake before the offer, maintaining substantial management control. The company has no holding company. Key leadership includes Madhu Bhushan Khurana (Chairman and Managing Director), Sidhartha Bhushan Khurana (Managing Director), and Manish Mehta (Chief Financial Officer).

Industry Overview of Studds Accessories IPO

Studds Accessories Limited operates within the high-growth Indian Two-Wheeler Helmet Market, a sector demonstrating robust expansion primarily driven by stricter regulatory enforcement, increasing safety awareness, and rising disposable incomes. The Indian helmet market was valued at Rs 2,080 crores in CY2024 (Calendar Year). This strong trajectory is projected to continue, with the overall market expected to grow at a Compound Annual Growth Rate (CAGR) of 8.7% in value terms between CY2024 and CY2029, reaching Rs 3,150 crores.

The market growth is structurally fuelled by India's favourable demographics, including an average age of 29, steadily rising disposable incomes, and the massive base of two-wheeler owners. Crucially, helmet usage penetration in India reached 60% by CY24 but still lags global figures, indicating substantial untapped potential as stringent enforcement pushes compliance. Furthermore, the mandatory requirement for all helmets to conform to BIS certification is aggressively consolidating the market towards the organized sector, projected to exceed 80% by CY29.

A primary driver of recent growth is the escalating demand for higher-quality and premium products. The premium segment, targeted by the 'SMK' brand, is estimated to grow to 10% of the total helmet market in value terms by Fiscal 2029, driven by leisure riding trends and consumer preference for advanced features. This momentum is supported by manufacturers who are investing in R&D and integrated supply chains to comply with international standards like ECE 22.06 for export markets.

Within this intensely competitive environment, the industry is navigating challenges such as the proliferation of low-quality and counterfeit products, increasing regulatory compliance costs, and raw material cost volatility, such as Plastic ABS (Acrylonitrile Butadiene Styrene) and polycarbonate prices.

Financial Overview of Studds Accessories IPO

The financial performance of Studds Accessories Limited over the three fiscal years ending March 31, 2023, 2024, and 2025 reflects robust growth in the top and bottom lines, driven by its market leadership position and efficient scaling of its vertically integrated manufacturing operations.

Revenue from Operations has shown a significant upward trend, driven by continuous demand, especially after optimizing the product portfolio to meet updated global safety certifications (ECE 22.06 compliance for exports). Revenue increased from Rs 499.16 crores in FY23 to Rs 529.02 crores in FY24, and reached Rs 583.81 crores in FY25, achieving a strong CAGR of approximately 8.1% over the period.

In the Operating Efficiency part, performance is marked by structural efficiencies derived from vertical integration, such as internal production of EPS liners and decals and strategic cost management. The EBITDA Margin demonstrated a substantial upward trajectory, improving consistently from 12.03% in FY23 to 17.05% in FY24, and achieving a robust 17.96% in FY25. The dramatic efficiency gain in FY24 was primarily linked to cost control and operating leverage.

Profit After Tax (PAT) has demonstrated powerful underlying growth. PAT saw a massive increase in FY24 to Rs 57.22 crores, a 72.6% YoY jump from Rs 33.14 crores in FY23, driven largely by significant cost optimization and reduced finance costs due to debt repayment. It continued its strong growth trajectory in FY25, rising to Rs 69.64 crores, reflecting a healthy 21.7% YoY growth over FY24. The PAT Margin reflected this underlying expansion, rising from 6.64% in FY23 to 10.82% in FY24 and settling at a strong 11.93% in FY25.

The Return on Equity (RoE) highlights efficient utilization of shareholders' capital. This ratio demonstrated significant growth from 9.81% in FY23 to 14.77% in FY24, and further strengthened to 15.49% in FY25.

Crucially, the Return on Capital Employed (RoCE) highlights superior operational asset utilization, significantly improving from 12.81% in FY23 to 18.98% in FY24, and further solidifying at 20.25% in FY25. This showcases consistent strengthening of capital productivity and reinforces the company's strong financial health.

The company maintains a very strong capital structure with consistently low financial risk. The Net Debt to Equity Ratio reflects a negligible debt exposure and a net cash position in recent years, demonstrating efficient, low-leverage operation.

Strengths and Risks of Studds Accessories IPO

Let's delve into the strengths and weaknesses to assess if the Studds Accessories IPO is good or bad for investors.

Strengths

• Market Leadership and Brand Command: Studds Accessories is the largest two-wheeler helmets player in India by revenue in Fiscal 2024 and the world's largest by volume in CY2024. The company holds a significant 27.3% market share by volume and 25.5% in market value in the domestic market for the Fiscal 2024 and successfully leverages a dual-brand strategy with 'Studds' for mass or mid-market and 'SMK' focusing on the premium segment.

• Capital Efficiency and Financial Robustness: The Company maintains a strong balance sheet with negligible external debt, achieving a Net Debt/Equity Ratio of (0.07) as of March 31, 2025. It demonstrates efficient capital utilisation with a Return on Capital Employed (RoCE) of 20.25% and a strong EBITDA Margin of 17.96% in Fiscal 2025, reflecting solid operational performance.

• Vertically Integrated Operations and Quality Control: The company operates a fully integrated model, controlling the value chain from design (75-member D&D team) to final production. This includes in-house EPS liners, decal printing, and an in-house helmet testing laboratory certified by VCA, England, ensuring superior quality, cost efficiency, and a faster design-to-market cycle.

• Extensive Distribution and Global Reach: Studds sells its products through a vast domestic network of 363 active distributors and exports to over 70 countries, reducing dependence on a single market. This reach is augmented by supplying leading Original Equipment Manufacturers (OEMs) and government channels.

• Favourable Regulatory Tailwinds: The ongoing shift toward mandatory BIS-certified helmets is driving market consolidation from the unorganized to the organized sector. The company's compliance with global safety standards like ECE 22.06 positions it strongly to capitalize on both rising domestic safety awareness and growing export demand.

Risks

• Revenue and Product Concentration Risk: The business relies heavily on its core product, as the sale of two-wheeler helmets contributed 92.81% of the total sales for the three months ended June 30, 2025. This links the company's growth directly to the often-cyclical performance of the overall two-wheeler automotive industry.

• Geographic Manufacturing Concentration Risk: All current operational manufacturing facilities (I, II, III, and IV), plus the under-construction Facility V, are concentrated in Faridabad, Haryana. This concentration exposes the entire production capability to high risk from regional disturbances, natural disasters, or labor unrest in a single geographic location.

• Raw Material Price and Supply Volatility: Operations incur significant costs, which are 40.86% of revenue in Q1FY26 for raw materials like ABS, polycarbonate, and paint. The practice of procuring most raw materials on an order-by-order basis without long-term agreements exposes the company to price volatility and potential supply interruptions.

• Failure to Maintain and Evolve Brands: Sustained performance depends on successfully maintaining the brand equity of 'Studds' and 'SMK'. Failure to launch new, commercially successful designs or effectively mitigate brand dilution due to deep discounting by e-sellers could have a material effect on sales and market position.

• Historical Non-Compliance and Regulatory Exposure: The company has instances of past non-compliance with the Companies Act, 1956, and delays in statutory filings. Although addressed, a risk of new regulatory actions, penalties, or litigation related to these or future compliance lapses remains.

Strategies of Studds Accessories IPO 

• Expand Production Capacity and Deepen Vertical Integration: The core strategy involves completing and commissioning Manufacturing Facility V, which is expected by Fiscal 2026 to meet rising demand. This includes accelerating automation in existing facilities via advanced robotic machinery for processes like painting and coating to improve operational efficiency.

• Strategically Expand Global Footprint: Focus on scaling exports, particularly by strengthening presence in North American, South American, and ASEAN markets. Plans include establishing a new subsidiary and logistics warehouse in Europe to shift toward a distributor-direct approach in key international markets.

• Increase Offering in the Premium Segment: Leverage the dual-brand portfolio by increasing market penetration for 'SMK' helmets focused on the premium segment and strategically introducing higher-margin, premium offerings under the 'Studds' brand to capture the aspirations of a broader customer base driven by rising disposable incomes.

• Expand Product Portfolio in Niche Segments: Utilize current manufacturing capabilities to diversify the product mix into complementary, higher-margin categories such as bicycle helmets, two-wheeler luggage, and apparel like riding jackets, gloves, to reduce reliance on core helmet sales and target new consumer segments.

• Increase Focus on the Domestic Online Sales Channel: Systematically invest in and expand online sales through major e-commerce platforms and the company's website to broaden customer reach, particularly to tech-savvy urban and semi-urban consumers, while building capability for an integrated online-offline experience.

Studds Accessories IPO vs. Peers

There is no listed Indian company with a similar business model. So, for comparison, in the RHP, they have provided unlisted players and data for comparison. Studds Accessories Limited operates at a market-leading scale within the specialized two-wheeler safety gear industry, differentiating its financial performance and scale from its unlisted domestic competitors, who are Vega Auto Accessories Private Limited and Steelbird Hi-Tech India Limited.

Studds reported Revenue from Operations of Rs 529.02 crores in Fiscal 2024, positioning it as the largest player by revenue in India. This scale significantly exceeds that of its unlisted competitor, Vega (Rs 474.03 crores), and is more than twice the revenue of Steelbird (Rs 209.80 crores) in the same period.

Studds delivered a strong Return on Capital Employed (RoCE) of 18.98% in Fiscal 2024, which is competitive against Vega's 20.88%. Studds' RoE stood at 14.77% in FY24, reflecting decent shareholder returns.

Studds operates with an efficient and healthy profitability profile. The Company achieved a PAT Margin of 10.68% and an EBITDA Margin of 17.05% in Fiscal 2024, placing it competitively against Vega (PAT Margin of 11.19% and EBITDA Margin of 18.82%) and Steelbird (PAT Margin of 13.02% and EBITDA Margin of 19.27%), showcasing its ability to translate scale into healthy operating income.

Operationally, Studds demonstrates a strategic focus on efficiency and de-leveraging. Its Debt to Equity ratio was a minimal 0.02 in FY24 (improving from 0.09 in FY23), contrasting with Steelbird's historical leveraging. Studds benefits from its established dual-brand portfolio and strong international footprint, enabling it to navigate competitive domestic pricing dynamics by relying on higher-margin export sales.

Disclaimer: As stated in the Red Herring Prospectus, the Company does not have any listed peers in India or globally with a comparable scale of operations or financial profile.

Objectives of Studds Accessories IPO

The offering consists solely of an Offer for Sale (OFS). Consequently, Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, Chand Khurana, Sanjay Leekha, Sanjay Leekha jointly with Charu Leekha, Charu Leekha, Nisha Leekha, Nain Tara Mehta, Sunil Kumar Rastogi, SE Shoes Private Limited, and Ajay Kumar Sakhuja will receive the entire proceeds from the IPO issue.

Studds Accessories IPO Details

IPO Dates

Studds Accessories IPO will be open for subscription from October 30, 2025, to November 03, 2025. The allotment of shares to investors will take place on November 04, 2025, and the company is expected to be listed on the NSE and BSE on November 07, 2025.

IPO Issue Price

Studds Accessories is offering its shares in the price band of Rs 557 to Rs 585 per share. This means you would require an investment of Rs. 14,625 per lot (25 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Studds Accessories is issuing a total offer for sale of 77,86,120 shares, worth Rs 455.49 crores. The selling shareholders will receive the entire proceeds.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on November 04, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Studds Accessories will be listed on the NSE and BSE on November 07, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Studds Accessories IPO

FAQs:

Q1: What is the issue size of Studds Accessories Limited's IPO?

The entire issue size is offer for sale worth Rs 455.49 crores. The whole proceeds will be received by Madhu Bhushan Khurana, Sidhartha Bhushan Khurana, Chand Khurana, Sanjay Leekha, Sanjay Leekha jointly with Charu Leekha, Charu Leekha, Nisha Leekha, Nain Tara Mehta, Sunil Kumar Rastogi, SE Shoes Private Limited, and Ajay Kumar Sakhuja, who are the selling shareholders in this IPO.

Q2: What’s the minimum investment for the Studds Accessories IPO?

25 shares per lot, requiring Rs 14,625 (at upper band).

Q3: How does Studds Accessories compare to peers?

Studds Accessories is in the two-wheeler helmet and accessories industry, and there are no listed companies that are comparable in size or in the same industry. However, the unlisted players include Vega Auto Accessories Private Limited and Steelbird Hi-Tech India Limited.

Q4: Who is managing the Studds Accessories IPO?

IIFL Capital Services Limited and ICICI Securities Limited are the book-running lead managers for the IPO.

Q5: What are Studds Accessories' latest financials?

Studds Accessories' latest financials for Fiscal 2025 include a Revenue from Operations of Rs 583.82 crores and an EBITDA Margin of 17.96%. The company’s Profit After Tax (PAT) for Fiscal 2025 was Rs 69.64 crore, with a PAT Margin of 11.93%.