Studds Accessories Ltd (STUDDS) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- The company will invest 84.7 crores INR in capex for FY27, having just added 1.5 million units of capacity and planning another 1.5 million units.
- Management reaffirmed full-year volume growth guidance of 8-10% and revenue growth of 15-19%, expecting a stronger H2 as new capacity ramps up.
- A new subsidiary in Italy will serve as a European distribution hub, with setup costs impacting Q2/Q3 margins but aiming for profitability next fiscal year.
Performance Overview
- The company faced significant input cost pressures from rising styrene-based raw material prices, which impacted gross margins and profitability.
- A strong focus on premiumization resulted in the SMK brand's sales contribution increasing from 13% in Q2 FY26 to 20% in Q2 FY27.
- Export business demonstrated robust growth, with H1 FY27 export revenue growing by nearly 50% year-on-year, driven by strong performance across all geographies.
- Manufacturing capacity was expanded by 1.5 million units to a total of 11.5 million units annually to support growing demand, with a further 1.5 million unit expansion planned.
- The company diversified its product portfolio by launching in-house manufactured riding jackets under the SMK brand and preparing to launch Bluetooth communication systems.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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