Recode Studios Lists at ₹213.10, Up 41.61%

Recode Studios Ltd, incorporated in 2021 as an Indian beauty and personal care company operating under brand "Recode" focusing on branding, sourcing, and selling makeup, skincare, body care, and beauty accessories offering 350+ SKUs through omnichannel network comprising 3 company-owned (COCO) and 21 franchisee-owned (FOFO) stores across 14 states along with e-commerce presence on Amazon, Nykaa, Myntra, Flipkart, and own website/app with products manufactured by third-party manufacturers in India, made a stellar debut on BSE SME on Tuesday, May 12, 2026. The Recode Studios share price opened at ₹213.10 representing premium of 34.87% from issue price of ₹158.00, immediately hit upper circuit at ₹223.75 (up 41.61%).

Recode Studios Listing Details

Recode Studios launched its IPO comprising fresh issue of ₹39.55 crore and OFS of ₹5.04 crore at ₹158 per share with minimum investment of 1,600 shares costing ₹2,52,800 raising ₹44.59 crore including ₹12.67 crore from anchor investors.

First-Day Trading Performance

Listing Price: Recode Studios stock price opened at ₹213.10 representing premium of 34.87% from issue price, immediately hit upper circuit at ₹223.75 (up 41.61%), with VWAP at ₹216.62. The stellar listing delivered exceptional gains for IPO investors with turnover of ₹33.18 crore, traded volume of 15.32 lakh shares, delivery of 100%, and market capitalisation of ₹238.17 crore against pre-IPO market cap of ₹168.18 crore.

Growth Drivers and Challenges

Growth Drivers:

Strong Revenue Growth: Revenue growing from ₹22.44 crore in FY23 to ₹47.94 crore in FY25 (2.1x growth), 9M FY26 revenue of ₹57.45 crore already exceeding full FY25, reflecting rapid scaling of beauty and personal care brand.

Exceptional Profitability Improvement: PAT surging from ₹0.27 crore in FY24 to ₹9.06 crore in 9M FY26, PAT margin expanding from 0.73% to 15.79%, EBITDA margin improving from 4.52% to 23.24%, ROE of 68.11% and ROCE of 59.85%.

Challenges:

Recent Incorporation: Company incorporated only in 2021 with limited operating history, brand recognition still building in competitive beauty and personal care market dominated by established players.

Third-Party Manufacturing Dependence: All products manufactured by third-party manufacturers in India creating dependency on external suppliers for quality control and production capacity.

Utilisation of IPO Proceeds

Working Capital: ₹19.50 crore for working capital requirements representing bulk of proceeds supporting inventory and retail operations expansion.

Warehouse Facility: ₹5.74 crore for capital expenditure towards setup of new warehouse facility at Ludhiana, Punjab.

Marketing and Advertisement: ₹5.41 crore for enhancing brand awareness and visibility.

General Corporate Purposes: ₹2.96 crore.

Financial Performance

Revenue: ₹57.45 crore for 9 months ended December 2025 (already exceeding full FY25), ₹47.94 crore for FY25, growth from ₹36.93 crore in FY24 and ₹22.44 crore in FY23.

Net Profit: ₹9.06 crore for 9 months FY26 (already nearly 3x full FY25), ₹3.30 crore in FY25, growth from ₹0.27 crore in FY24 and ₹0.69 crore in FY23, with post-IPO EPS of ₹11.35 and attractive P/E of 13.92x. Investors tracking Recode Studios share price should note exceptional margin expansion with EBITDA margin improving from 4.52% in FY24 to 23.24% in 9M FY26 and near debt-free balance sheet with debt-to-equity of only 0.19.