Recode Studios board approved the appointment of new statutory and secretarial auditors on September 8, 2026. The firm also scheduled its fifth annual general meeting for September 30, 2026.

The board considered and approved the Board Report, Management Discussion and Analysis Report, and Secretarial Audit Report for FY26. These documents will be presented to shareholders at the upcoming meeting.

Auditor Appointments

The company appointed M/s R M S G & Associates, Chartered Accountants, New Delhi (FRN: 037808N), as Statutory Auditors. The term covers five consecutive financial years from FY27 to FY31. This appointment is subject to shareholder approval at the AGM.

M/s R M S G & Associates provides professional services in audit, assurance, taxation, and financial advisory. The firm holds a team of experienced professionals specializing in statutory audits and regulatory compliances.

For Secretarial Auditors, the board appointed M/s Lal Ghai & Associates, Practising Company Secretaries. This firm is peer-reviewed with over 12 years of experience in legal, secretarial, and taxation matters. It serves listed and unlisted entities, banks, and other institutions. This appointment also requires shareholder approval.

AGM Details

The fifth Annual General Meeting will be held on Wednesday, September 30, 2026, at 3:00 pm via Video Conferencing or Other Audio Visual Means. The cut-off date for determining voting eligibility is September 23, 2026.

Mr. Sumit Ghai (M. No: 10253), Managing Partner of M/s Lal Ghai & Associates, was appointed as Scrutinizer for the remote e-voting process. His report and e-voting results will be submitted to stock exchanges within the timeline stipulated under Regulation 44 of SEBI Listing Regulations.

Recode Studios has fixed September 23, 2026 as the record date for payment of its final dividend of ₹0.25 per equity share for the financial year ended March 31, 2026. The Ludhiana-based beauty and personal care company reported a 260% year-on-year increase in net profit to ₹1,122.48 lakh for FY26. Revenue from operations grew 67% to ₹7,994.99 lakh, supported by operational efficiency and expanded distribution channels.

The Board of Directors recommended the dividend in its meeting held on May 30, 2026. The total dividend payout aggregates to approximately ₹26.61 lakh on 1,06,44,344 fully paid-up equity shares. The declaration is subject to shareholder approval at the forthcoming Annual General Meeting.

Financial Performance

Recode Studios demonstrated significant top-line and bottom-line growth during FY26 compared to the previous fiscal year.

The company’s Profit Before Tax (PBT) rose to ₹1,501.06 lakh from ₹443.45 lakh in FY25. Total income increased to ₹8,005.82 lakh, reflecting the expansion in the scale of operations.

What the Numbers Show

The disproportionate growth in net profit relative to revenue indicates significant operating leverage. While revenue grew by 67%, EBITDA expanded by 172%, and net profit surged by 260%. This divergence suggests that fixed costs were spread over a larger revenue base, driving margin expansion. The EBITDA margin improved by nearly 8 percentage points to 20.69%, highlighting improved cost management or a shift toward higher-margin product mixes.

Strategic Developments

During FY26, Recode Studios transitioned from a private limited entity to a public limited company. The company completed its IPO, allotting 25,03,200 equity shares at an issue price of ₹158 per share. The listing on the BSE SME Platform aims to enhance visibility and provide access to capital for future growth.

Additionally, the company acquired a 33% equity stake in Aflairza Professionals Private Limited for ₹8.32 crore as part of Phase I of a strategic partnership. Recode plans to increase its stake to 51% subject to agreed milestones, aiming to strengthen its presence in the premium beauty segment.

Governance and Dividend

The 5th Annual General Meeting is scheduled for September 30, 2026, to approve the financial statements and appoint statutory auditors M/s R M S G & Associates for five years. Shareholders on record as of September 23, 2026, will be eligible for the final dividend payout.

Key managerial changes included the re-designation of Dheeraj Bansal as Chairman and Managing Director and Karan Bansal as Whole-Time Director and CEO.