Recode Studios Ltd

BSE: 544755

₹ 422.75-5.00%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 450 crWebsite: www.shop.recodestudios.com/Updated: 24 Oct 2026

About

Recode Studios sells beauty, cosmetics and personal care products under the Recode brand, covering make-up, skincare, body care and beauty accessories. It runs an asset-light model focused on branding, sourcing and distribution, and third-party manufacturers make its products. It reported revenue of Rs 79.95 crore in FY26 and reached customers online and through its own and franchise stores.^[1][2]

Business and products

The company reports a single segment, Beauty and Personal Care, under AS-17 (FY26).^[1]
Its products span make-up, skincare, body care and beauty accessories, all sold under the Recode brand (FY26).^[1]
The portfolio had about 350 SKUs in FY26.^[3]

Sourcing and operations

The company owns no factories. Third-party manufacturers in several Indian states make its products, and some products are imported (FY26).^[1]
It uses warehouses for storage, packing and dispatch. R&D spending was nil in FY26.^[1]

Channels and distribution

About 60% of revenue came from online sales and 40% from offline sales in FY26.^[3]
Online, it sells through its own website and app and through Amazon, Flipkart, Myntra and Nykaa. It is now also listed on Nykaa Superstore.^[1]
The FY26 annual report gives two figures for the share of online sales through its own website and app: more than 72% in the MD&A and 80% in the outlook section.^[1]
On the Q4 FY26 call, management put the company's own website at 50% of online sales in FY26.^[3]
The call gave a store count of 22 in FY26 (3 company-owned and 19 franchise stores). The annual report gives 23 regular stores and 7 kiosks.^[3][1]
The company has entered Dabur's NewU stores and is expanding in Shoppers Stop, Spencer's and other modern trade chains (FY26).^[1]

Revenue by region

FY26 revenue by zone: North 32.85%, East 27.18%, West 23.13%, South 10.47% and Central 6.37%.^[1]

Key operating numbers

Marketing spend was 20% of revenue in FY26. Management describes this level as standing policy.^[3]
The online repeat purchase rate was 40% month-on-month in FY26.^[3]
Average order value on the website was about Rs 800 in FY26, up about Rs 100 from the prior period.^[3]
H2 FY26 revenue was Rs 43 cr, against Rs 29 cr in H2 FY25. Make-up demand is strongest in the October to December festive quarter.^[3]

Expansion plans

The company has stopped opening new franchise stores and is opening dark stores instead. It has opened them in Jabalpur, Hyderabad and Chennai, with Bhubaneswar and Ranchi in the pipeline (Q4 FY26 call).^[3]
A Ludhiana warehouse and distribution centre is being developed, with operations expected to start in April 2027.^[3][1]
The company plans to add 15-20 more NewU stores in FY27.^[1]
20-25 new products are planned over the six months after the Q4 FY26 call, at higher prices (MRPs of Rs 999, Rs 1,500 and Rs 2,500).^[3]
Management expects the online-to-offline split to move from 60:40 to 50:50 during FY27.^[3]
The company exited Zepto and Swiggy over losses on each sale and is now on Blinkit only in Delhi NCR. It plans its own quick commerce delivery service.^[3]

Recent developments

On 23 July 2026, the company completed Phase I of its Aflairza Professionals investment, buying a 33% stake for about Rs 8.32 crore. It plans to raise the stake to 51% in Phase II, subject to milestones.^[1]
Aflairza makes and sells beauty, cosmetics and personal care products. Its predecessor firm had revenue of Rs 8.22 crore in FY25-26.^[1]
The company opened its first modern trade kiosk, in Omaxe Mall, New Delhi, around the time of the Q4 FY26 call and set up a dedicated modern trade team.^[3]

Market Cap

₹450 Cr

High / Low

₹477 / 171

Stock P/E

40.1

Price / Book

0.0

Book Value

₹25

EPS

₹10.5

No. of Shares

0.81 Cr

ROCE

60.0%

ROE

56.1%

OPM

19.6%

Debt / Equity

0.31

Sales

₹80 Cr

Net Profit

₹11 Cr

Promoter holding

65.2%

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