Studds Accessories IPO: The good and the bad

Summary: Studds Accessories, a leader in the two-wheeler helmet space, is set to go public on October 30, 2025. We analyse its strengths, weaknesses and past financials to help you assess whether its IPO is worth subscribing to.

Studds Accessories IPO (initial public offering) will open for subscription on October 30, 2025 and close on November 3, 2025. The two-wheeler helmet manufacturer aims to raise over Rs 455 crore entirely through an offer for sale (OFS).

We break down the company’s business, financials, strengths, risks and valuation to help you make an informed investing decision.

What the company does

Studds Accessories is India’s largest and the world’s leading two-wheeler helmet maker, backed by nearly five decades of manufacturing experience. With an annual production capacity of over nine million units and sales of 7.4 million helmets in FY25, the company commands a strong domestic and global presence. Its two flagship brands, Studds and SMK, are sold in over 70 countries across Asia, Europe and the Americas.

Beyond helmets, Studds also offers riding gear and accessories such as luggage, jackets and eyewear. It additionally manufactures helmets for global brands like Daytona and O’Neal, reinforcing its position as a trusted OEM partner worldwide.

Track record and valuation

In terms of financials, Studds Accessories has demonstrated a strong track record. Between FY23 and FY25, the company’s net profit (profit after tax) posted double-digit growth of 45 per cent every year, while revenue grew at a modest 8 per cent during the same period. Impressively, the helmet manufacturer significantly reduced its total debt, which fell by nearly 47 per cent over the three-year period.

At the upper end of the price band (Rs 585), the stock is expected to be valued at 33 times its FY25 earnings and 4.9 times its book value. There are no listed peers for comparison.

The good

Below are some of the key strengths of Studds Accessories.

#1 Market leader in the two-wheeler helmet space

Studds Accessories is India’s largest and the world’s top helmet manufacturer by volume, backed by nearly five decades of expertise in safety gear. The company sold 7.4 million helmets in FY25, driven by a strong focus on innovation, safety, and quality. Its flagship Studds brand enjoys deep consumer trust, while the premium SMK brand, launched in 2016, has gained global traction. Together, the two brands cater to all price segments, from economy to premium, and are sold across multiple international markets. 

#2 Extensive sales and distribution network

Over nearly five decades, Studds has built a strong distribution network spanning India and over 70 countries. It works with 363 active distributors domestically and caters to key export markets across the Americas, Asia and Europe. This extensive reach provides a significant competitive edge in an industry where distribution acts as a natural entry barrier. 

Alongside distributors, the company also engages directly with consumers through exclusive brand outlets (EBOs), enhancing visibility and customer connect. Its ability to fulfil large, high-quality orders has strengthened Studds’ reputation in demanding markets like the US and Europe and cemented long-term global partnerships.

The bad

Despite being a leading two-wheeler helmet manufacturer, Studds Accessories has certain drawbacks.

#1 Revenue is highly dependent on a single product

Helmets account for over 90 per cent of Studds’ total sales, making the company’s fortunes closely tied to two-wheeler demand. In FY25, domestic helmet volumes rose slightly to 6.78 million units, supported by higher two-wheeler sales, accounting for nearly 74 per cent of the company’s revenue. Thus, a slowdown in motorcycle sales could materially impact its revenue and profitability.

#2 Dependency on a handful of suppliers

Studds relies heavily on a limited group of raw material suppliers, with the top vendors accounting for over 40 per cent of its total procurement in recent years. As of August 2025, the company sourced from 240 suppliers, mainly based in Haryana, Maharashtra, Uttar Pradesh and Singapore.

Disruptions at these supplier locations could impact Studds Accessories’ production and costs. Limited alternative sourcing options further heighten the company’s exposure to supply chain risks.

Where will the IPO proceeds go?

Since the issue is entirely an offer for sale, all the proceeds from the IPO will go to the selling promoters and shareholders.

So, should you apply for the Studds Accessories IPO?

The Studds Accessories IPO might make waves, but lasting wealth is rarely built on buzz alone. True success comes from steady compounding and disciplined investing.

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