Business Overview

Recode Studios Limited is a beauty and personal care (BPC) company operating in the beauty, cosmetics and personal care segment in India. The business primarily involves branding, procurement and distribution of products under the "Recode" brand. The company was featured on Shark Tank India.

Operational Performance

Financial Highlights (Figures in ₹ Lakhs):

  • Revenue from Operations: FY26 - 7,994.99; FY25 - 4,779.81; FY24 - 3,681.95; FY23 - 2,237.85
  • Profit After Tax: FY26 - 1,122.48; FY25 - 311.18; FY24 - 27.43; FY23 - 69.28
  • Basic EPS (₹): FY26 - 13.79; FY25 - 3.82; FY24 - 0.34; FY23 - 0.88
  • EBITDA Margin: Nearly doubled in FY26 from FY25 levels due to better operational efficiency

Sales Channel Breakdown (FY26):

  • COCO Stores: 0.91%
  • FOFO Stores: 24.50%
  • Online Sales: 43.87% (72% from company's own website and application)
  • B2B Sales: 30.73%

Geographical Revenue Mix (FY26):

  • North Zone: 32.85%
  • West Zone: 23.13%
  • East Zone: 27.18%
  • South Zone: 10.47%
  • Central Zone: 6.37%

Business Model & Operations

  • Omnichannel Distribution: Integrates offline and online platforms
  • Product Portfolio: 350+ SKUs across 5 major categories (makeup, skincare, body care, haircare, accessories)
  • Physical Presence: 6 warehouses across India for storage, packaging and dispatch
  • Retail Network: COCO (Company Owned Company Operated) and FOFO (Franchise Owned Franchise Operated) stores
  • Digital Reach: 4.57 lakh Instagram followers
  • Masterclasses: 500+ conducted until December 31, 2025

Capital Structure & Financial Position

Balance Sheet Highlights (March 31, 2026 in ₹ Lakhs):

  • Share Capital: 814.11
  • Reserves and Surplus: 1,185.83
  • Total Equity: 1,999.94
  • Inventories: 1,072.50
  • Trade Receivables: 1,537.95
  • Cash and Bank Balances: 131.70

Cash Flow Statement (FY26 in ₹ Lakhs):

  • Net cash flow from Operating Activities: 433.78 (positive since FY25)
  • Net cash flow from Investing Activities: (180.17)
  • Net cash flow from Financing Activities: (204.08)

Growth Strategy & Future Plans

  • IPO Proceeds Deployment: Strategically deployed towards strengthening working capital, expanding market presence
  • Retail Expansion: Plans to add new FOFO and COCO stores, strengthen presence in modern trade outlets and quick commerce
  • Geographic Focus: Expand franchise network in underpenetrated regions, especially South & East India
  • Infrastructure: Strengthening Ludhiana warehouse and distribution network, expected commencement from April 2027
  • Product Development: Enhance and diversify product portfolio across beauty categories

Management Guidance

  • Promoters guide for at least 50% growth in FY27
  • Growth expected to be backed by strong demand, deeper market penetration and expanding distribution network
  • Improved working capital to enable sharper market penetration and expansion across existing and new geographies

Management Team

  • Dheeraj Bansal: Managing Director (28 years experience)
  • Rahul Sachdeva: Whole-Time Director (15 years experience)
  • Shalini Trehan: Non-Executive Director

Industry Context

  • India Beauty & Cosmetics Market Size: USD 15.2 Bn (2024) → USD 27.8 Bn (2034)
  • CAGR: ~6.2%
  • Growth drivers: rising middle-class population, increasing online penetration, demand for affordable beauty products