Studds Accessories, the world’s largest two-wheeler helmet maker by volume (CY24) and India’s clear leader with a 27 per cent market share (FY24), has launched an offer-for-sale of ₹455.5 crore. Selling shareholders, including the promoter Khurana family, are offloading 77.86 lakh shares, or about 20 per cent of the stake, at a price band of ₹557–₹585, valuing the company at a market cap of around ₹2,300 crore. The IPO has already been subscribed 2.5x (at 1115 am on Friday) and closes on November 3.
The company sells helmets under the Studds (mass and mid-market) and SMK (premium) brands, along with other riding accessories. It exports to over 70 countries and operates four factories in Faridabad, with a fifth facility expected to be commissioned by FY26. Studds straddles two identities: an auto-ancillary by supply chain and an emerging consumer brand by aspiration.
At the upper end of the price band, the IPO values Studds at about 33 times FY25 earnings. SHOEI, the only listed global peer, trades at around 13 times trailing earnings, though the Japanese firm operates in a narrow niche with limited scale. Though Studds is an auto accessories firm, among similar-sized auto-component peers by m-cap, it delivers higher margins (~18 per cent EBITDA) and superior RoCE (20+ per cent).
Its net-cash balance sheet and steady margins are supported by long-term demand tailwinds. Tighter safety enforcement, pillion-helmet mandates, and India’s low helmet-to-rider ratio of 0.6x (vs 1.5x globally) leave ample headroom for growth. Phased capacity expansion (from 90 lakh to 1.2 crore units a year), a rising export share (revenues nearly doubled in FY25), and the move toward higher-value helmets through SMK reinforce the long-term case despite premium valuations. Thus, investors with a higher risk appetite can consider subscribing with a three- to five-year view.
To know about the risks to this business, refer to the section at the end. None of these risks threatens the business model, but they cap how far the valuation can stretch from here. We acknowledge that Studds offers something interesting: a clean, scaled-up play on road safety and two-wheeler ownership. It has built a strong domestic base and is extending its reach overseas. The growth drivers are all real. But at 33x P/E, investors getting in now are paying for a brand transformation that is still a work in progress.
Inside helmets
Whether full-face, flip-up or open-face, every helmet blends materials science and safety engineering. The outer shell is made of high-impact Acrylonitrile Butadiene Styrene (ABS) or polycarbonate, while the inner liner is expanded polystyrene (EPS) for shock absorption. Cloth, paints, and cartons complete the chain. Each unit must meet BIS or ECE safety norms and pass multiple tests while staying light enough for daily use. Painting, decal transfer, stitching, and visor moulding require skilled labour and can’t be fully automated.
Studds executes all these steps in-house, from injection moulding and EPS forming to painting, decal application, and assembly. Full vertical integration ensures consistent quality, stable margins, and quick model refresh cycles. Because helmets are replaced every 3–4 years (mass) or 6–7 years (premium), continuous innovation keeps the shelf moving. SMK helmets retail at ₹3,000 – ₹12,800 versus ₹875 – ₹4,000 for Studds brand. It has 360+ active distributors in India.
The company in India competes with Steelbird and Vega brands. Globally, large helmet brands include Hong Jin Crown, SHOEI, AGV and Nolan Group.
Under-covered market
Two-wheelers account for over three-fourths of India’s automobile sales, yet helmet use remains uneven. Only six in ten riders wear helmets, and pillion riders wear them even less. India’s helmet-to-biker ratio of 0.6x, compared with 1.5x globally, reflects low compliance and cost-sensitivity. Even a modest rise to 0.8x could meaningfully lift industry volumes and Studds’ earnings.
A government push for pillion helmets and OEM-supplied headgear (2 helmets with every new purchase) from CY26 should help. Industry demand is projected to grow 6 per cent in volume and 9 per cent in value annually till 2029 (CARE Ratings), faster than global growth.
Buyers are also trading up: average helmet prices have risen 8–9 per cent annually since 2019. Comfort, aerodynamics, and aesthetics now matter as much as compliance. That shift aligns with Studds’ premiumisation drive. The SMK brand, launched in 2016, now contributes 4 per cent of helmet volumes and 13 per cent of revenues, gaining traction in Europe and Latin America.
Apart from helmets, accessories like gloves, luggage, and jackets are small today but margin-accretive. This gives Studds a natural adjacency to expand its brand presence. Helmet sizing makes offline trials critical, so digital channels may aid visibility more than actual sales.
Beyond established markets in Europe (30.2 per cent of exports) and the Americas (29.3 per cent), Studds is evaluating entry into Vietnam, Peru and Egypt, and may pursue inorganic expansion if synergies arise.
Studds operates at 86 per cent capacity utilisation levels. It remains a manufacturing-led company for now, but its evolution into a consumer-facing brand is the next big move. As brand identity deepens, Studds can command better pricing power, faster inventory turnover, and lower reliance on OEM orders (FY25: 16 per cent).
Financials, valuation
Studds’ financial performance has been steady and operationally driven (see table). Cash flow from operations stood at 60–90 per cent of EBITDA across FY23–FY25.
The company has stayed net-debt-free through this growth phase, with a negative net-debt-to-equity ratio of 0.1x in FY25. Importantly, this scaling came without major capex spikes or any private equity. Q1 FY26 results show the trend continuing, with EBITDA margins of 20.3 per cent and PAT margins of 13.6 per cent, suggesting that operating efficiency is still improving even as new capacity comes onstream.
Studds derives about one-fifth of its revenue from exports, billed in dollars and euros. While it attempts to pass on forex losses to buyers, currency movements can still affect reported earnings. With limited import exposure, there is no natural hedge.
At the top end of the price band, Studds is seeking about 33 times FY25 earnings. The valuation prices it more like a consumer brand than a helmet manufacturer. The catch: the consumer pull is still taking shape. Advertising and promotion expenses are barely 2–3 per cent of sales, not enough to build a strong recall.
Over 70 per cent of revenue still comes from domestic distribution and OEM channels. Capacity utilisation is already high, and the next leg of capacity will come only in phases by FY26. The new Faridabad plant will add 15 lakh units in Q4 FY26, with another 15 lakh to follow within 12–18 months.
The scarcity premium—the extra multiple markets pay for a one-of-a-kind listed business—explains part of the valuation demanded, but not all of it.
Risks
The first risk is valuation itself. A 33-times P/E multiple (4-times Price/Sales) leaves little buffer for a weak quarter or slower volume growth.
The second is policy dependence. Helmet sales rise when enforcement tightens, but slip when rules soften. Consumer awareness grows slowly, especially in smaller towns.
Exports, now one-fifth of revenue, add their own set of risks — tariffs, freight, and currency. White-label contracts mean Studds has limited pricing control abroad.
The new plant at Faridabad will lift capacity but will take time to stabilise. Until then, growth depends mostly on price hikes and mix improvement.
Competition is heating up in the premium segment, where Vega and Steelbird are scaling up.
Input costs remain a key swing factor. Plastic derivatives such as ABS, polycarbonate and EPS account for over a third of Studds’ raw material costs, making margins sensitive to swings in resin prices.
And though two-wheeler demand is recovering, it remains cyclical. A weak year in motorcycles and scooters can hurt sales across the board.
Published on October 31, 2025
