A beauty and personal care brand building company plans to raise Rs 44.59 crore via the BSE SME platform
Recode Studios Ltd., a beauty and personal care brand company operating in the makeup, skincare, and body care segment under the “Recode” brand, opens for subscription on May 5 with the issue closing on May 7. The company is listing on the BSE SME platform.
What the Company Does
Recode Studios is a brand-and-distribution business that neither owns manufacturing facilities nor produces the products it sells. All products are manufactured by third-party manufacturers located across India, with certain products sourced through imports. The company’s business is primarily focused on product sourcing, branding, marketing, and distribution — a model that offers flexibility but creates fundamental dependency on external manufacturers.
Its portfolio spans 350+ SKUs across face makeup, eye makeup, lip makeup, face and body care, and beauty accessories. Distribution is omnichannel — through its own COCO and FOFO retail stores, its proprietary website and mobile app, and third-party e-commerce marketplaces including Amazon, Nykaa, Myntra, and Flipkart. As of March 31, 2026, the company had 156 employees on its payroll.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | May 5, 2026 |
| Issue Closes | May 7, 2026 |
| Listing | BSE SME (May 12, 2026) |
| Price Band | Rs 150 – Rs 158 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 44.59 crore |
| Fresh Issue | Rs 39.55 crore |
| OFS | Rs 5.04 crore |
| Lot Size | 800 shares (min 2 lots = 1,600 shares) |
| Min. Retail Investment | Rs 2,52,800 |
| Post-IPO Market Cap | Rs 168.18 crore |
| BRLM | Seren Capital Pvt. Ltd. |
| Registrar | Mudra RTA Ventures Pvt. Ltd. |
From the fresh issue proceeds, Rs 19.50 crore will go towards working capital, Rs 5.74 crore for capex on a new warehouse, and Rs 5.41 crore for marketing and brand building.
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Total Income | 22.44 | 36.93 | 47.94 | 57.45 |
| Net Profit | 0.69 | 0.27 | 3.30 | 9.06 |
| PAT Margin | 3.10% | 0.75% | 6.91% | 15.79% |
| RoCE | 14.28% | 9.38% | 34.47% | 39.85% |
Revenue has grown consistently from Rs 22.44 crore in FY23 to Rs 47.94 crore in FY25. The profit story, however, is one of sudden, sharp improvement — from a near-negligible Rs 0.27 crore in FY24 to Rs 3.30 crore in FY25 and then Rs 9.06 crore in just nine months of FY26. PAT margins have swung from 0.75% to 15.79% in a very short period — an unusual trajectory for a brand at this scale in this competitive category.
Average EPS over three years is Rs 2.29 and average RoNW is 22.71%. At the upper band, the P/E works out to 13.92x on annualised FY26 earnings but 50.97x on FY25 — a wide gap depending on which earnings base an investor uses. Peers cited in the offer document — Honasa Consumer, FSN E-Commerce (Nykaa), and Ravelcare — are not truly comparable, and the comparison is directional at best.
BRLM Track Record: This is the 6th mandate from Seren Capital in the last two fiscals. All five prior listings recorded a premium on the date of listing, ranging from 17.07% to 48.73%.
Risks to Consider
The company does not own any manufacturing facilities and is entirely dependent on third-party manufacturers — a structural vulnerability in a sector where formulation quality, ingredient sourcing, and regulatory compliance of contract manufacturers are critical. The sharp surge in PAT margins from under 1% in FY24 to nearly 16% in 9M FY26 raises pointed questions about sustainability and whether the numbers reflect durable business improvement or pre-IPO window dressing. The beauty and personal care segment in India is intensely competitive, with well-funded direct-to-consumer brands and large FMCG players constantly competing for the same shelf and screen space.
Analyst View
Independent analysts flag that the sudden profit surge from FY25 onwards, arriving just ahead of the listing, warrants caution. The complete dependency on third-party supply limits the company’s control over quality, timelines, and costs. The issue appears aggressively priced based on recent financial data note analysts.