Studds Accessories Q2 FY27 results: net profit down 28.5% to ₹14.74 crore, revenue up 18.6%

How did Studds Accessories perform in Q2 FY27?

Studds Accessories reported consolidated revenue of ₹183.11 crore in Q2 FY27, up 18.6% from ₹154.44 crore in Q2 FY26 and 7.9% from ₹169.68 crore in Q1 FY27. Total income was ₹186.55 crore, up 18.6% year on year and 7.9% from ₹172.92 crore in the previous quarter. EBITDA was ₹22.78 crore, compared with ₹29.85 crore a year earlier and ₹19.55 crore in Q1 FY27.

EBITDA margin was 12.4%, down 6.9 percentage points from 19.3% in Q2 FY26 but up 0.9 percentage points from 11.5% in Q1 FY27. Profit before tax was ₹20.41 crore, down 25.0% year on year and up 18.7% from ₹17.20 crore. PAT was ₹14.74 crore, down 28.5% from ₹20.62 crore and up 19.8% from ₹12.30 crore, while basic EPS was ₹3.75.

On a standalone basis, revenue was ₹182.46 crore and PAT was ₹15.50 crore in the quarter, with revenue growth of 18.3% and PAT before exceptional items of ₹21.27 crore.

What changed in Studds Accessories' costs and profit?

The company attributed the pressure on profitability to a challenging raw material environment. It said geopolitical developments caused volatility in crude oil prices, which drove styrene-based input costs higher and weighed on profitability. Calibrated price increases partly offset the impact, while sustained margin recovery was expected to depend on raw material prices stabilising.

Total expenses rose 27.7% year on year to ₹166.14 crore. Cost of materials increased by ₹17.82 crore, or 27.0%, to ₹83.84 crore, while other expenses increased by ₹12.47 crore, or 28.0%, to ₹57 crore. Employee cost was ₹18.80 crore, up by ₹2.94 crore, or 18.5%, and depreciation was ₹5.62 crore, up by ₹0.36 crore, or 6.8%.

Other income increased by ₹0.56 crore, or 19.4%, to ₹3.44 crore. Finance costs declined by ₹0.05 crore, or 20.0%, to ₹0.20 crore, while tax fell by ₹0.93 crore, or 14.1%, to ₹5.67 crore. There was no exceptional item in Q2 FY27. EBITDA margin fell by 6.9 percentage points to 12.4% and PAT margin fell by 5.3 percentage points to 8.1%.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 16.2% to ₹352.78 crore from ₹303.66 crore in H1 FY26, an increase of ₹49.12 crore. Total income increased 16.2% by ₹50.14 crore to ₹359.47 crore. PAT declined by ₹13.83 crore, or 33.8%, to ₹27.04 crore, while basic EPS fell by ₹3.51, or 33.8%, to ₹6.87.

Profit before tax in H1 FY27 was ₹37.61 crore, down ₹17.29 crore, or 31.5%, from ₹54.90 crore in H1 FY26. The decline in profit was larger than the increase in revenue. The company said revenue growth in the first half was supported by domestic and international demand, but its raw material costs weighed on profitability.

What do the balance sheet and cash flow show?

Total assets were ₹658.21 crore as on 30 September 2026, compared with ₹637.60 crore as on 31 March 2026. Total equity rose to ₹538.28 crore from ₹522.97 crore, while borrowings were ₹3.73 crore compared with ₹3.67 crore. Cash fell to ₹53.99 crore from ₹70.33 crore. Inventories were ₹74.12 crore, trade receivables ₹55.22 crore and trade payables ₹47.74 crore.

H1 FY27 operating cash flow was ₹9.76 crore, compared with ₹66.44 crore in H1 FY26. Investing cash flow was negative ₹13.65 crore against negative ₹12.63 crore, while financing cash flow was negative ₹12.35 crore against negative ₹10.85 crore. Capital expenditure was ₹20.88 crore in H1 FY27, compared with ₹27.13 crore in the earlier first half.

How has Studds Accessories done over the last 5 quarters?

Revenue increased across the five reported quarters, from ₹154.44 crore in Q2 FY26 to ₹183.11 crore in Q2 FY27. PAT reached its highest reported level of ₹21.10 crore in Q4 FY26 before falling to ₹12.30 crore in Q1 FY27 and recovering to ₹14.74 crore in Q2 FY27. EBITDA margin peaked at 19.3% in Q2 FY26 and fell to 11.5% in Q1 FY27 before rising to 12.4% in the latest quarter.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. It also approved a grant of 1,30,000 employee stock options to identified eligible employees under the Studds Accessories Limited Employee Stock Option Scheme 2026, effective 31 October 2026.

The options carry an exercise price of ₹334.90, representing a 15% discount to the NSE closing price of ₹394.00 on 30 October 2026. The filing stated that the options would be issued through the direct route upon exercise and that the scheme’s maximum grant is 2,97,381 options on a fully diluted basis. The same-day filings did not announce a dividend or a fund raise, and no appointment was stated.

What did Studds Accessories' management say?

Management identified styrene-price volatility, wage inflation of about 30-35% in April, fixed costs at the Italian subsidiary, and the pace of the export ramp-up as risks. The CEO said: “However, I would like to emphasize that this is a raw material-led cost challenge and does not change the underlying fundamentals of our business or our long-term growth strategy.” He added that another price increase would be considered if prices did not soften.

How did Studds Accessories shares react?

After the filing, the stock was up 0.7% after 5 minutes, 2.6% after 15 minutes and 2.5% after 30 minutes. It closed 0.6% below the pre-results close on the reaction day. By the next day's close, it was down 1.1% from the pre-results close, while the Auto Components & Equipments industry median was up 2.6%. The stock therefore underperformed the industry by 3.8 percentage points by the next day's close.

How did other Auto Components & Equipments companies do?

Among 45 other Auto Components & Equipments companies that had filed for the quarter, the median revenue growth was 34.2%. Of these companies, 12 grew more slowly than Studds Accessories and 33 grew faster. Of 46 peers assessed for profit, 37 reported higher profit.