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.

Studds Accessories Limited released its investor presentation for Q3FY26 financial results on February 1, 2026, pursuant to Regulation 30 of the SEBI Listing Regulations. India's largest two-wheeler helmet manufacturer and one of the world's leading helmet and motorcycle accessories brands reported robust consolidated performance with significant improvements across key financial metrics for the quarter ended December 31, 2025.

Strong Quarterly Financial Performance

The company delivered impressive consolidated results for Q3FY26, with revenue from operations reaching Rs. 163.0 Cr compared to Rs. 149.0 Cr in Q3FY25, representing a solid 9.4% year-over-year growth. Profit After Tax showed exceptional momentum, increasing by 26.3% to Rs. 20.7 Cr from Rs. 16.4 Cr in the corresponding quarter of the previous year, with PAT margin expanding to 12.7% from 11.0%.

Enhanced Profitability and Margin Expansion

The company demonstrated exceptional EBITDA performance in Q3FY26, with EBITDA reaching Rs. 30.7 Cr compared to Rs. 25.6 Cr in the corresponding quarter last year, representing a robust 20.1% year-over-year growth. The EBITDA margin also showed significant improvement, expanding to 18.8% from 17.2% in Q3FY25, indicating enhanced operational efficiency and favorable raw material prices.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, consolidated revenue from operations stood at Rs. 466.7 Cr, up 7.5% from Rs. 434.2 Cr in the corresponding period last year. Profit After Tax for the nine-month period reached Rs. 61.6 Cr, marking a substantial 23.9% increase from Rs. 49.7 Cr in the previous year, with PAT margin improving to 13.2% from 11.5%.

Product Mix and Channel Distribution

The company's diversified product portfolio continues to drive growth, with Studds Helmets contributing 77.0% of revenue in Q3FY26, SMK Helmets at 12.4%, DAYTONA & ONEAL at 2.8%, and Other Accessories at 7.8%. The channel mix remains well-balanced with Distributor Network & EBO contributing 56.3%, OEMs at 13.5%, Others including e-commerce at 11.1%, and Exports at 19.0%.

Management Commentary and Strategic Updates

Managing Director Sidhartha Bhushan Khurana highlighted that revenue growth was driven by steady demand across core product categories despite a mixed operating environment. Gross margin expansion was attributed to favorable raw material prices and improved procurement efficiency. However, other expenses increased in Q3FY26 primarily due to higher advertising and marketing spends for participation in marquee events such as IBW and EICMA and targeted digital brand-building initiatives.

Operational Developments and Capacity Expansion

The company's 1.5 million unit capacity expansion for helmets and boxes has been deferred by one quarter due to pollution-related construction restrictions. To fulfill ongoing demand, the company has optimized its production process and added additional machinery, allowing production of an additional 5 lakh units on an annual basis. The incorporation of a wholly-owned subsidiary in Spain is progressing as planned, with commercial operations expected to commence in Q1FY27.