Recode Studios Limited is a beauty and personal care (BPC) company operating under the “Recode” brand in India. The company focuses on branding, marketing, procurement and distribution of cosmetics and skincare products through online platforms, COCO stores, FOFO stores, its website and mobile app. Revenue is generated through sales of make-up, skincare, body care and beauty accessories. The company follows an asset-light model where manufacturing is outsourced to third-party manufacturers while Recode focuses on brand building and distribution.

Key Clients, Distribution Network and Facilities

The company sells products directly to retail customers through e-commerce marketplaces, company-owned stores and franchise stores. Recode operates from Ludhiana, Punjab, and currently uses rented warehouse facilities. The company plans to establish a new owned warehouse facility at Ludhiana to improve inventory management, order processing, packaging and supply chain efficiency. The proposed warehouse will strengthen backend operations and reduce dependency on leased premises. Axis Bank Limited is the banker to the company.

Product Portfolio and Order Execution

Recode’s product portfolio includes Face Make-up, Eye Make-up, Lip Make-up, Face & Body Care and Accessories. Products include foundation, compact, kajal, eyeliner, lipstick, sunscreen, moisturizers, brushes and beauty tools. These products are part of consumers’ regular grooming and personal care cycles, creating repeat demand. The company operates through an omni-channel distribution model, helping faster execution and inventory movement. The proposed warehouse is expected to improve order fulfilment and delivery efficiency across online and offline channels.

Expansion Plans and Future Capex

The company has not undertaken any merger or acquisition since incorporation. Recode plans to invest ₹628.10 lakh towards establishing a new warehouse facility in Ludhiana. Out of this, ₹574.20 lakh will be funded from IPO proceeds. The project includes land acquisition, civil construction and warehouse infrastructure. Construction is expected to begin in May 2026 and operations are expected to commence from April 2027. The company also plans to spend significantly on marketing and brand visibility to support future growth.

Employees and Banker

As of March 31 2026, the company had 114 full time employees. The Banker to the Company is Axis Bank Limited.

Management and Growth Outlook

The company is led by promoter and Managing Director Dheeraj Bansal along with CEO and Whole-Time Director Karan Bansal. The management is focused on expanding the Recode brand across India through digital channels, franchise expansion and strengthening backend infrastructure. The company aims to grow its beauty and personal care product portfolio in line with changing customer preferences and industry trends.

The management strategy is centered on increasing brand awareness, improving supply chain efficiency and enhancing customer reach through omni-channel distribution. The company intends to strengthen its D2C business through its mobile app and website while simultaneously expanding offline retail presence through COCO and FOFO stores.

Recode’s future growth plan includes setting up a modern warehouse facility in Ludhiana to improve inventory management, order execution and operational scalability. The company also plans to aggressively invest in digital marketing, social media advertising and influencer-based campaigns to improve brand recall in the highly competitive beauty industry.

The company plans to fund its capex and expansion primarily through IPO proceeds. In case of delay in raising IPO funds, management may temporarily use internal accruals or unsecured bridge financing. The company has stated that no bridge financing has been availed currently.

Financially, the company has shown strong growth. Profit after tax increased to ₹906.18 lakh during the nine months ended December 2025 from ₹330.29 lakh in FY25. EBITDA increased to ₹1,333.96 lakh during the same period, reflecting strong operational improvement.

Industry Overview

Recode Studios operates in the Indian Beauty and Personal Care (BPC) industry, one of the fastest-growing consumer segments in India. The industry includes cosmetics, skincare, body care, hair care and beauty accessories.

The Indian beauty and personal care market is witnessing strong growth due to increasing disposable income, rising urbanisation, growth in e-commerce penetration and increasing awareness about personal grooming. Digital platforms, influencer marketing and social media are significantly influencing customer buying behaviour.

According to industry insights mentioned in the RHP, growth opportunities are emerging from exports, rural penetration and male grooming products. India is becoming a global supplier of herbal, ayurvedic and organic cosmetic products due to competitive pricing and increasing global demand for natural beauty products.

The industry is also benefiting from rapid growth in D2C brands and online beauty platforms. Faster logistics, automated warehouses and quick fulfilment systems are becoming major competitive advantages for brands operating in this segment.

Globally, the beauty and personal care market is a multi-billion-dollar industry with strong long-term growth visibility. India remains one of the fastest-growing markets due to rising youth population, social media penetration and premiumisation trends.

Major global players in the industry include L’Oréal, Estée Lauder, Unilever and Procter & Gamble, while Indian market leaders include Nykaa, Mamaearth, Sugar Cosmetics, Lakmé and Colorbar.

The Indian BPC industry is expected to continue growing at a double-digit CAGR over the coming years, supported by increasing online purchases, premium beauty products and rising demand from Tier-2 and Tier-3 cities.

Major Risk Factors

1. Dependence on Third-Party Manufacturers

The company follows an asset-light model and does not own manufacturing facilities. Any disruption, quality issue or delay from third-party manufacturers can negatively impact product availability, customer trust and financial performance.

2. Intense Industry Competition

The beauty and personal care industry is highly competitive with established national and global brands. Aggressive pricing, marketing campaigns and new product launches by competitors may impact Recode’s market share and profitability.

3. Dependence on Brand Image and Marketing

The company’s growth is heavily dependent on brand recognition and digital marketing. Failure of promotional campaigns or negative social media feedback may impact customer acquisition and sales growth

4. Working Capital and Inventory Risk

The business requires continuous inventory management across multiple channels. Any mismatch in demand forecasting, stock handling or logistics may increase working capital requirements and operational inefficiencies.

5. Regulatory and Compliance Risk

The company operates in a regulated cosmetics industry requiring compliance with product quality and safety standards. Any failure to meet regulatory requirements may result in penalties, product recalls or reputational damage.

6. Legal and Statutory Proceedings

The company has disclosed outstanding legal, tax and regulatory proceedings involving promoters and directors. Any adverse outcome may impact profitability, management bandwidth and financial condition

7. Dependence on E-commerce Platforms

A significant portion of sales is generated through online channels and marketplaces. Any changes in marketplace policies, commission structures or platform visibility can impact revenues and customer reach.

Key Strengths, Business Moat and Opportunities

1. Strong Asset-Light Business Model

The company operates under an asset-light model without large manufacturing investments. This allows the company to focus on branding, marketing and distribution while maintaining operational flexibility and lower capital expenditure requirements. fileciteturn1file0

2. Diversified Product Portfolio

Recode offers products across make-up, skincare, body care and accessories categories. A diversified portfolio helps the company attract different customer segments and generate repeat purchases across product categories. fileciteturn1file16

3. Omni-Channel Distribution Network

The company sells products through COCO stores, franchise stores, e-commerce platforms, website and mobile application. This diversified distribution strategy reduces dependence on a single channel and improves customer reach.

4. Strong Financial Growth

The company reported PAT of ₹906.18 lakh during the nine months ended December 2025 compared to ₹330.29 lakh in FY25. EBITDA also increased significantly to ₹1,333.96 lakh, reflecting improving operating leverage.

5. Growing Indian Beauty Market

The Indian beauty and personal care industry is expanding rapidly due to rising disposable income, social media influence and increasing awareness regarding grooming and skincare. This creates strong long-term growth opportunities for the company.

6. Planned Warehouse Expansion

The proposed warehouse facility in Ludhiana will improve supply chain efficiency, inventory tracking and order fulfilment capabilities. Better logistics infrastructure can improve customer satisfaction and operational scalability.

7. Brand Recognition and Digital Presence

The company has built visibility through digital marketing, influencer promotions and online platforms. Its focus on social media engagement and D2C strategy can help expand customer acquisition in Tier-2 and Tier-3 cities.