Studds Accessories Limited has announced that CARE Ratings Limited has withdrawn its credit ratings for the company's bank facilities, effective April 02, 2026. The rating agency withdrew the outstanding ratings of 'CARE A+; Stable/CARE A1+' at the company's request and with no objection certificates from the concerned banks.

Rating Withdrawal Details

The withdrawal applies to the company's long-term and short-term bank facilities, which were previously rated 'CARE A+; Stable/CARE A1+'. CARE Ratings confirmed that the action was taken following a formal request from Studds Accessories and after receiving no objection certificates from all banks that had extended the rated facilities.

Financial Performance Highlights

Prior to the withdrawal, CARE Ratings had reaffirmed the ratings based on the company's strong operational performance. The rating agency noted Studds Accessories' robust financial metrics and market position.

The company reported a 9.7% increase in total operating income in FY25, rising from ₹531.66 crore to ₹586.57 crore. This growth was primarily driven by higher sales volume, with the company selling approximately 75 lakh helmets compared to 71 lakh in the previous fiscal year.

Company Strengths Recognized

CARE Ratings highlighted several key strengths before the withdrawal:

• Market Leadership: Commands approximately 25% market share in India's helmet industry
• Global Presence: Exports products to over 70 countries across multiple continents
• Strong Client Base: Long-standing relationships with OEMs including Honda Motor, Royal Enfield, Hero Motocorp, and Yamaha
• Debt-Free Position: Overall gearing ratio of 0.01x as of March 31, 2025
• Strong Liquidity: Cash and cash equivalents totaling ₹81.48 crore as of September 30, 2025

Capital Structure and Liquidity Position

The company maintains a comfortable capital structure with minimal debt. As of March 31, 2025, Studds Accessories reported an overall gearing ratio of 0.01x and a total outside liabilities to tangible net worth ratio of 0.19x, improving from 0.02x and 0.21x respectively in the previous year.

Regulatory Compliance

Studds Accessories has informed both the National Stock Exchange of India and BSE Limited about the rating withdrawal in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also made this information available on its website under the Investor Relations section, ensuring transparency with stakeholders and regulatory compliance.

Studds accessories Limited has announced the voluntary withdrawal of its credit rating from CARE Ratings Limited, as disclosed to stock exchanges on March 26, 2026. The company communicated this development to both the National Stock Exchange of India and BSE Limited under regulatory compliance requirements.

Voluntary Rating Withdrawal

The company voluntarily requested the withdrawal of its credit rating, and CARE Ratings Limited has complied with this request in accordance with its established policy on rating withdrawals. This action was taken pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance and Documentation

The company has indicated that it will submit the official press release from CARE Ratings Limited regarding this withdrawal in due course. This information will also be made available on the company's website at www.studds.com under the Investor Relations section.

Corporate Communication

The intimation was signed by Asha Mittal, Company Secretary and Compliance Officer, who submitted the information to stock exchanges as an abundant caution measure. The company emphasized that this disclosure ensures full transparency with investors and regulatory authorities regarding the rating withdrawal decision.