Studds expects to double premium helmet revenue share in 2 years: MD

the rising demand for premium helmets is also helping Studds Accessories expand its profit margins

Studds Accessories, India’s largest two-wheeler helmet maker, expects revenue share of its premium helmets to rise to about 30 per cent in two years from 15.5 per cent, said managing director (MD) Sidhartha Bhushan Khurana.  This, according to him, would be driven by changing customer preferences and higher sales of premium two-wheelers.  The rising demand for premium helmets is also helping Studds expand its profit margins.  “In the first half of the current financial year, our profit after tax (PAT) margin rose 22.9 per cent year-on-year (Y-o-Y) to ₹40.9 crore. This came even as revenue grew by just about 6.4 per cent to ₹303.7 crore. That is the premiumisation story playing out,” Khurana told Business Standard.  In the first half of FY26, the share of SMK — the company’s premium motorcycle helmet brand — increased to 15.5 per cent of total sales. This is up from 11.5 per cent in the same period last year.  “We expect SMK’s share to reach 30 per cent over the next two years,” he added.  Capacity constraints, however, remain a challenge. “Our capacity utilisation is already at 91 per cent, which means we have largely exhausted existing capacity and are unable to fully meet market demand at present,” Khurana said.  Studds currently operates three manufacturing facilities with a combined capacity of 9 million units per annum.  The company’s new manufacturing facility will begin Phase I operations in the last quarter of the current financial year, adding 1.5 million units per annum of capacity.  Phase II will add another 1.5 million units per annum, taking the total capacity to 12 million units per annum once both phases are operational. The new facility will manufacture both SMK and Studds helmets.  The average selling price of a Studds helmet is about ₹730, while that of an SMK helmet is around ₹2,340.  “Margins on an SMK helmet are nearly double those of a Studds helmet, which is why we see further margin expansion ahead,” Khurana said.  The MD said premium motorcycle sales are growing faster than mass-market models, a trend he expects to continue over the next five years.  With India’s per capita income still low, he said there is ample room for premiumisation. He added that buyers typically spend equivalent to about two per cent of a motorcycle’s cost on a helmet.  “The market is there — exports are growing and domestic premiumisation is gaining momentum. Even with 91 per cent capacity utilisation, we expect revenue growth of around 9-10 per cent Y-o-Y in FY26,” he added.  Policy changes could further expand the market.  The government is in the process of mandating that two-wheeler manufacturers provide two helmets with every motorcycle sold, instead of the current requirement of one helmet, to improve pillion rider’s safety.  Khurana said annual helmet sales in India currently stand at 30-35 million units, of which 7-8 million are supplied directly to two-wheeler makers.  “Once the regulation comes in, this 7-8 million will immediately rise to at least 14 million units. That means the industry size itself will increase significantly,” he said.  On exports, Khurana said Studds expects overseas revenue to more than double over the next four years, potentially reaching ₹260-270 crore.  Exports are likely to stand at about ₹120 crore in the current financial year. To support this growth and improve profitability, the company has shifted away from a distributor-led model in key markets.  It began operating its own warehouse in Fort Wayne, the United States, in November and plans to set up another warehouse in Spain within the next six months to cater to Europe. “These two markets -- the US and Europe -- will give you margin expansion because of high profitability,” Khurana said.  He said that working with distributors in regions such as the US and Europe was inefficient, as production and shipping together took nearly 60 days, something customers were no longer willing to wait for. With its own warehouses, the company can now deliver products across Europe within two days, helping it become a permanent presence in the market and reducing the risk of disruption if a distributor exits. Finding a new distributor typically takes five to six months.  From 2027, Studds will also enter MotoGP, the world’s premier motorcycle racing championship, by sponsoring two riders. Khurana said the visibility of top riders wearing the company’s helmets would significantly boost brand recall, particularly in South-East Asian markets such as Indonesia, Malaysia and Vietnam, where MotoGP enjoys a strong following. High-volume export markets for the company include Indonesia, Taiwan, Colombia, Mexico and the Philippines.  On the US market, he said recent import duty hikes have had a limited impact. Studds raised prices by about 15 per cent, passing on part of the tariff impact to consumers. “Even with this hike, we are breaking even, and in the first half of FY26, the US business made a small profit,” he said, adding that the US is not a price-sensitive market, with helmet prices ranging from $120 to $300. As a result, the company is unlikely to roll back the price increase even if tariffs are reduced.