Updated on 12.05.2026|10:20 AM
Recode Studios Limited is launching its Initial Public Offering (IPO).
It is an asset-light, omnichannel beauty and personal care (BPC) brand offering cosmetics, skincare, and accessories.
The public issue is scheduled to open on Tuesday, May 5, 2026, and will close on Thursday, May 7, 2026. Track all the latest IPOs at our upcoming and live IPO section.
Through this book-built offering, the company aims to raise approximately ₹44.59 Crores via a combination of a Fresh Issue (₹37.26 Crores) and an Offer for Sale (OFS) of ₹7.33 Crores, with the price band set at ₹150 to ₹158 per equity share.
In this article, you will find Recode Studios IPO GMP today, price band, and a detailed review with financial analysis, strength and risks and valuations.
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Briefs of Recode Studios IPO Details:
- Price Band: ₹150 – ₹158 per equity share
- Face Value: ₹10 per share
- IPO Open / Close Dates: May 5, 2026 – May 7, 2026
- Lot Size: 800 Shares (Note: Retail Minimum Application is 2 Lots / 1,600 Shares)
- Issue Size: 28,22,400 Equity Shares / ~₹44.59 Crores
- Fresh Issue: 23,58,400 Shares (~₹37.26 Cr)
- Offer for Sale (OFS): 3,19,200 Shares (~₹7.33 Cr)
- Registrar: Mudra RTA Ventures Private Limited
- Listing Exchange: BSE SME
IPO Reservation:
The offering comprises 28,22,400 shares, reserved as follows:
- QIB Portion: Not more than 13,36,800 Equity Shares (Anchor Investors may be allocated up to 8,01,600 Equity Shares from this portion).
- NII (HNI) Portion: Not less than 4,03,200 Equity Shares.
- Retail (RII) Portion: Not less than 9,37,600 Equity Shares.
- Market Maker: 1,44,800 Equity Shares.
What Is The Recode Studios IPO GMP Today?
You can check the GMP of this and other issues at our GMP hub page.
It is an unofficial indicator and is not regularised by SEBI, NSE, or BSE. Investors should not rely solely on GMP for investment decisions.
Listing Updates:
| Type | Issue Price | Open | Gain/loss % |
| Lisiting | 158.00 | 213.10 | 34.87 |
What Are The Important Recode Studios IPO Dates & Allotment Schedule?
For investors planning their capital allocation, here is the critical timeline for the issue:
- IPO Open Date: Tuesday, May 5, 2026
- IPO Close Date: Thursday, May 7, 2026
- Basis of Allotment Date: Friday, May 8, 2026
- Refund Initiation Date: Monday, May 11, 2026
- Credit of Shares: Monday, May 11, 2026
- Listing Date: Tuesday, May 12, 2026
What Are The Objectives of Recode Studios IPO?
The company proposes to utilize the Net Proceeds from the Fresh Issue towards the following strategic purposes:
- Capital Expenditure: ₹5.74 Crores is allocated for setting up a new warehouse facility in Ludhiana, Punjab, to streamline logistics and inventory management.
- Marketing & Advertising: ₹5.41 Crores will be deployed to enhance brand visibility and awareness across digital and traditional platforms.
- Working Capital: A significant portion of ₹19.50 Crores is earmarked to fulfill the company's working capital needs, ensuring smooth operations as it scales its omnichannel presence.
- General Corporate Purposes: The remaining balance will cover ongoing operational contingencies and strategic initiatives.
(Note: The company will not receive any proceeds from the Offer for Sale).
How is The Financial Performance of Recode Studios?
The following table summarizes the financial performance of the company based on restated financial statements.
(Figures in ₹ Crores)
Particulars | Period Ended 31 Dec 25 (9M) | FY 2024-25 | FY 2023-24 | FY 2022-23 |
Total Income | 57.45 | 47.94 | 36.93 | 22.44 |
Profit After Tax (PAT) | 9.06 | 3.30 | 0.27 | 0.69 |
EBITDA | 13.34 | 6.13 | 1.67 | 1.44 |
Total Borrowing | 3.43 | 7.56 | 7.85 | 3.79 |
Assets | 28.33 | 23.18 | 16.73 | 12.53 |
Source: RHP
Financial Analysis & Observations:
Total Income:
The company demonstrated exceptional revenue growth, rising from ₹22.44 Crores in FY23 to ₹47.94 Crores in FY25.
The momentum accelerated significantly in the 9-month stub period of FY26, reaching ₹57.45 Crores, driven by the expansion of its omnichannel sales network and the booming domestic beauty and personal care market.
Profit After Tax (PAT):
Recode's profitability witnessed a massive turnaround, surging from ₹0.27 Crores in FY24 to ₹3.30 Crores in FY25.
The PAT further exploded to ₹9.06 Crores in the recent 9-month period, reflecting strong operating leverage as higher sales volumes outweighed fixed costs.
EBITDA:
Operational efficiency improved markedly, with EBITDA jumping to ₹13.34 Crores by December 2025.
The EBITDA margin expansion highlights strong procurement efficiencies and a highly scalable, asset-light business model.
Total Borrowing:
The company has managed to aggressively reduce its total borrowings to ₹3.43 Crores by December 2025, down from ₹7.56 Crores in FY25.
This yields a highly comfortable Debt-to-Equity ratio, providing ample headroom for future growth without financial strain.
Assets:
Total assets expanded steadily to ₹28.33 Crores by December 2025.
This growth is predominantly fueled by an increase in current assets, specifically inventory and trade receivables, which are necessary to manage the rapidly scaling sales volumes across its online and offline channels.
What Are the P/E Ratio and Peer Comparison?
Based on its Fiscal Year 2025 earnings per share (EPS) of ₹4.06, the IPO is priced at a Price-to-Earnings (P/E) multiple of approximately 38.91x at the upper end of the price band (₹158).
P/E Ratio = ₹158(Price) / ₹4.06 (Earnings Per Share)
P/E Ratio ≈ 38.91x
Peer Comparison Table (FY 2024-25 Data):
Company | P/E Ratio | RoNW (%) | EPS (₹) | Total Revenue (₹ Cr) |
Recode Studios | 38.91 | 37.64 | 4.06 | 47.94 |
Honasa Consumer (Mamaearth) | 349.37 | 6.16 | 2.23 | 2,145.68 |
FSN E-Commerce (Nykaa) | 1151.91 | 5.60% | 0.23 | 7,977.08 |
Ravelcare Limited | 16.95 | 50.77 | 10.50 | 24.98 |
Analysis:
Recode Studios is entering the market at a P/E multiple of approximately 38.91x based on its FY25 EPS.
When compared to BPC industry giants like Honasa Consumer (349x) and Nykaa (1151x), the issue appears to be priced very attractively, though these peers operate on a vastly different revenue scale.
Crucially, Recode boasts a high Return on Net Worth (RoNW) of 37.64%, vastly outperforming the low single-digit returns of Nykaa and Mamaearth, indicating highly efficient capital utilization within its micro-cap bracket.
What is The Industry Outlook of Recode Studios?
Growth Potential:
The Indian Beauty and Personal Care (BPC) market is witnessing robust tailwinds driven by rising disposable incomes, digitalization, and an increasing focus on personal grooming across Tier 2 and Tier 3 cities.
Market Trends:
There is a distinct shift towards digital-first, omnichannel brands that can quickly adapt to changing consumer preferences. The asset-light model, relying on third-party manufacturing, allows brands to remain agile and allocate capital primarily towards marketing and customer acquisition.
What Are The Strengths and Risks of Recode Studios IPO?
Strengths:
- Asset-Light Operations: Relying on third-party manufacturers locally and internationally minimizes CapEx requirements and allows for rapid scalability.
- Omnichannel Reach: A diversified sales approach across B2B, COCO, FOFO, and D2C online platforms mitigates distribution channel risks.
- High Return Ratios: A stellar RoNW of 37.64% highlights excellent management of shareholder equity.
Risks:
- Product Concentration: Nearly 70% of revenue in the recent period was generated from the "Face Make-Up" category. Any shift in consumer preference away from color cosmetics could severely impact sales.
- Cash Flow Constraints: Despite accounting profits, the company reported negative operating cash flows in FY23 and FY24 due to heavy working capital deployments into inventory.
- Geographic Concentration: With its registered office and main warehousing in Ludhiana, Punjab, the company is vulnerable to regional disruptions affecting its supply chain.
Key Considerations for Investors
Investors should note the Minimum Investment structure.
- Minimum Application: The lot size is 800 Shares. Based on the data provided, the minimum application for Retail Individual Investors is 2 Lots (1,600 Shares), amounting to ₹2,52,800. Note: This investment amount exceeds the typical ₹2 Lakh retail limit, which implies this category effectively targets Small-HNI investors.
- Valuation vs. Risk: The P/E of 39x seems fair compared to the exorbitant multiples of larger BPC peers, especially considering the explosive recent profit growth. However, the lack of long-term customer contracts and negative cash flow history require careful consideration. You can check how the IPOs perform after listing in our IPO analytics page.
- Intellectual Property: Ongoing objections to critical trademarks could pose a long-term risk to brand protection and enforcement.
Key Takeaways
- IPO Price: ₹158 per share (Upper Band).
- Min Investment: ₹2,52,800 (1,600 Shares).
- Financials: Revenue ₹47.94 Cr (FY25);
- Allotment: May 8, 2026
- Listing: BSE SME platform on May 12, 2026.
FAQs on Recode Studios IPO
What is Recode Studios IPO GMP today?
Check the latest gmp at our gmp hub page.
What is Recode Studios IPO price band?
The price band is fixed at ₹150 to ₹158 per equity share.
What is Recode Studios IPO allotment date?
The allotment status is expected to be finalized on Friday, May 8, 2026. You can find details about allotment dates of this and other IPOs at our IPO allotment hub page.
How to check Recode Studios IPO allotment status?
Investors can check the status on the website of Mudra RTA Ventures Private Limited (the Registrar) or via the BSE IPO allotment portal.
What is Recode Studios IPO listing date?
The shares are tentatively scheduled to list on Tuesday, May 12, 2026.
Investment Perspective on Recode Studios IPO
Recode Studios offers an aggressive growth play in the lucrative Indian beauty and personal care market.
With an asset-light model driving exceptional return ratios and a valuation at a deep discount to sector giants, it is an attractive proposition.
However, the high ticket size for retail investors, product concentration, and historical negative cash flows are key risks to weigh carefully.
Disclaimer:
This article is strictly for educational purposes. Please consult a SEBI-registered investment advisor before making any investment decisions.
