Helmet Maker’s IPO Ride: Should You Strap In or Sit This One Out?

Liquide -

Studds Accessories Ltd (SAL), a leading helmet manufacturer, is set to launch its initial public offering (IPO), becoming the first company from India’s helmet segment to enter the public markets. With no direct listed peers, SAL’s IPO presents a unique opportunity for investors. The subscription window remains open until November 3.

But is this offering worth your attention—or should investors exercise caution? As always, it's crucial to evaluate the growth potential and associated risks before making a decision. For a detailed review, see our comprehensive IPO analysis here.

Studds Accessories IPO Details 

  • Issue Details: Mainstream
  • Issue Size: Rs 455.49 crore
  • Fresh Issue: -
  • Offer for Sale: Rs 455.49 crore
  • Price Band: Rs 557 – Rs 585
  • Lot Size: 25 shares
  • Listing Date: November 7, 2025

Overview of Studds Accessories Ltd

  • SAL manufactures two-wheeler helmets and motorcycle accessories such as riding jackets, gloves, rainwear, pannier boxes and other gear. It offers over 240 designs across its product range — including 80+ designs under the ‘SMK’ brand and 160+ under the ‘Studds’ brand.
  • SAL operates four manufacturing facilities in India with a combined annual installed capacity of 9.04 million helmets and boxes and a fifth facility currently under construction. In FY25, the company sold approximately 7.4 million helmets. Its products are distributed pan-India and exported to over 70 countries, spanning the Americas, Asia, Europe and other regions.

Studds Accessories Key Strengths

  • Market Leadership: SAL is India’s largest two-wheeler helmet manufacturer by revenue (FY24) and the world’s largest by volume (CY24). It commands a dominant domestic market share of 27.3% by volume and 25.5% by value, establishing clear leadership in the organized segment.
  • Strong Financial Growth: Between FY23 and FY25, SAL’s revenue grew at a CAGR of 8%, while EBITDA and net profit rose sharply at 32% and 45% respectively.
  • Expanding Margins: Profitability has consistently improved, with EBITDA margins increasing from 12.03% in FY23 to 17.96% in FY25 and further to 20.28% as of June 30, 2025. Net profit margins also expanded from 6.64% in FY23 to 11.93% in FY25 and 13.57% by June 2025, reflecting strong cost control and scale efficiency.
  • Lean Balance Sheet: SAL remains debt-free (Debt-to-Equity: –0.07x) with disciplined working-capital management, ensuring negligible interest costs and high financial flexibility.
  • Healthy Return Ratios: SAL boasts a Return on Equity of 15.5% and Return on Capital Employed of 20.25%, highlighting its efficient use of capital and sustained value creation for shareholders.
  • Robust Distributor Network: SAL has a strong and geographically diversified sales network with 363 active distributors across India and exports to over 70 countries. Alongside its own brands, the company manufactures helmets for international players such as Jay Squared LLC (Daytona brand, US) and O’Neal (Europe, US and Australia).
  • Strong OEM & Institutional Partnerships: SAL maintains long-standing relationships with leading motorcycle OEMs including Honda, Hero MotoCorp, Suzuki, Royal Enfield and Yamaha. It also supplies to government and institutional buyers such as the Central Police Canteens and Canteen Stores Department.

Studds Accessories Risk Factors

  • Cash Flow Concerns: SAL has reported negative cash flows from financing and investing activities over the past three fiscal years. Continued negative cash flows could strain liquidity, impacting the company’s ability to meet operational and financial obligations.
  • Legal Proceedings: SAL and certain directors and promoters are involved in ongoing legal cases, including criminal proceedings. An unfavourable outcome in these matters could have a material adverse impact on the company’s financials and brand image.
  • Export Exposure: With 22% of Q1 FY2026 revenue derived from exports, SAL is exposed to risks related to exchange rate volatility, international tariffs, and geopolitical developments that could affect its profitability.

Final Thoughts: Should You Subscribe to Studds Accessories’ IPO?

  • SAL has delivered a strong financial performance, with EBITDA nearly doubling over the past three years, driven by effective cost control, scale benefits and margin expansion. Its virtually debt-free balance sheet and healthy return ratios highlight prudent capital management and financial resilience.
  • At a valuation of around 33x FY25 earnings, the IPO appears fairly priced, offering comfort for a market leader with improving profitability, expanding margins and clear earnings visibility.
  • The domestic helmet market has grown at a 4.4% CAGR between CY19 and CY24 and is projected to expand by 6.1% in volume by CY29. In value terms, it is expected to rise from Rs 2,080 crore to Rs 3,150 crore by FY29, reflecting an 8.7% CAGR. With a market share exceeding 25%, SAL is well positioned to capture a significant share of this incremental growth.
  • With a dominant market presence, a widening export footprint and long-standing relationships with major OEMs, SAL is well-positioned to benefit from the increasing emphasis on rider safety and steady growth in the two-wheeler market.
  • Supported by sound fundamentals, operational resilience and favorable industry dynamics, the issue offers a balanced opportunity for long-term investors seeking exposure to a leading player in the two-wheeler safety-gear segment.

For a deep dive into other IPOs, explore: IPO Corner on Liquide