Recode Studios reported a 260% year-on-year increase in net profit to ₹1,122.48 lakh for the financial year ended March 31, 2026. Revenue from operations grew 67% to ₹7,994.99 lakh, supported by operational efficiency and expanded distribution channels.

The Ludhiana-based beauty and personal care company declared a final dividend of ₹0.25 per equity share. Following its initial public offering (IPO), the company's shares were listed on the BSE SME Platform on May 12, 2026.

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 Board of Directors recommended a final dividend of ₹0.25 per share on fully paid-up equity shares. 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.

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

Recode Studios Limited has appointed Ms. Rishita Mall as its Company Secretary and Compliance Officer. The appointment takes effect from September 1, 2026.

The Board of Directors approved the resolution by circulation on the same date. This move aligns with regulatory requirements for listed entities in India.

Appointment Details

Ms. Mall holds Membership No. A71581 with the Institute of Company Secretaries of India (ICSI). She joins as an Associate Member.

The Board passed the resolution pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also references SEBI Master Circular No. HO/49/14/14(7)2025-CFDPOD2/1/3762/2026 dated January 30, 2026.

Professional Background

Ms. Mall brings experience from her role as Company Secretary at Perfect Mettcast Private Limited. She served there from August 1, 2023, to August 21, 2026.

Her responsibilities included:

• Managing compliance under the Companies Act, 2013
• Handling ROC filings such as AOC-4 and MGT-7
• Coordinating Board and Annual General Meetings
• Managing FEMA compliance and RBI filings
• Conducting internal compliance checks

She specializes in corporate governance, secretarial audits, and legal drafting. Her core areas include FEMA and RBI reporting, as well as SEBI and LODR compliance.