Studds Accessories declared a final dividend of ₹3 per equity share for FY26 at its 44th Annual General Meeting held on September 5, 2026.

The payout represents 60% of the face value of ₹5 per share. The meeting was conducted through video conferencing in compliance with the Companies Act, 2013, and SEBI Listing Obligations Regulations.

Key Resolutions Passed

Shareholders approved several ordinary and special resolutions during the proceedings. The key outcomes included:

• Adoption of audited standalone and consolidated financial statements for the year ended March 31, 2026.
• Declaration of the final dividend for FY26.
• Re-appointment of Ms. Shilpa Arora as a Whole-time Director, who retires by rotation.

Employee Stock Option Scheme

The company secured approval for two special resolutions related to employee compensation. Members approved the introduction of the Studds Accessories Limited Employee Stock Option Scheme 2026. This scheme aims to retain and reward employees by aligning their interests with shareholders.

Additionally, shareholders approved granting ESOP options to eligible employees of subsidiary companies, both in India and abroad, under the new scheme. The approvals comply with Section 62(1)(b) of the Companies Act, 2013, and SEBI Share Based Employee Benefits Regulations, 2021.

Meeting Details

The AGM commenced at 4:00 pm and concluded at 5:11 pm (IST), excluding time allocated for e-voting. A total of 80 members attended the meeting, confirming the requisite quorum.

Mr. Madhu Bhushan Khurana, Chairman & Managing Director, chaired the proceedings. Mr. Sidhartha Bhushan Khurana, Managing Director, presented the company’s business performance and developments. The Statutory Auditor’s reports and Secretarial Audit Report for FY26 were taken as read, with no qualifications or adverse remarks noted.

E-voting results will be declared within two working days and made available on the company’s website and stock exchange portals.

Studds Accessories reported a 39.3% year-on-year decline in consolidated net profit to ₹12.3 crore for the quarter ended June 30, 2026 (Q1FY27), driven by elevated styrene-based raw material prices and incremental wage costs. Despite the profit contraction, revenue from operations grew to ₹167 crore from ₹148 crore in the prior year period, reflecting stable demand across key segments. The company's EBITDA margin compressed significantly to 12.08% from 20.53% in the prior year period, though management expects margins to recover as input costs moderate and price hikes take effect.

The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting held on August 8, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors Rajan Chhabra & Co. issued an unmodified limited review report. The Board also sanctioned capital injections into wholly owned subsidiaries SMK Helmets Europe SRL and Bikerz US Inc. to expand international distribution capabilities.

Financial Performance

Consolidated revenue from operations rose to ₹167 crore in Q1FY27 from ₹148 crore in Q1FY26. However, EBITDA fell to ₹20.2 crore from ₹30.4 crore, resulting in an EBITDA margin of 12.08%, down from 20.53%. Profit after tax declined to ₹12.3 crore from ₹20.2 crore, with PAT margin dropping to 7.2% from 13.6%. On a standalone basis, net profit fell to ₹132 million from ₹205 million in the prior year period.

Margin Recovery Outlook

Managing Director Sidhartha Bhushan Khurana attributed the margin pressure to significant inflation in styrene-based raw material prices and a lag in price pass-through. The company has undertaken a ~9% price hike, with ~5% effective realisation already reflected in Q1FY27. Management expects the balance benefit to flow through from Q2FY27 onwards. With styrene prices moderating from July, Studds projects EBITDA margins to recover to ~14-15% in Q2FY27E and ~18-20% in Q4FY27E, subject to stable commodity prices.

Strategic Initiatives

Studds is adding 1.5 million helmets per annum capacity, expected to commence operations by October 2026. This expansion aims to cater to growing demand and strengthen market position. Additionally, the company is progressing with a strategic engagement with Decathlon to enhance its presence in the organised segment. International expansion continues with operations in Italy expected to commence commercially from October 2026.

What the Numbers Show

The divergence between top-line growth and sharp bottom-line decline underscores the temporary but severe impact of input cost inflation. The compression in EBITDA margin from 20.53% to 12.08% highlights the company's current inability to fully pass through costs immediately. However, management's guidance suggests a clear path to margin recovery, leveraging both cost moderation and delayed price realisation. Investors should monitor Q2FY27 results for evidence of this turnaround.