Recode Studios is expanding its retail footprint through a kiosk-led growth strategy to strengthen market reach and enhance customer accessibility. The company has already launched two kiosks in Delhi during June 2026, receiving an encouraging customer response that validates the potential of the format. Building on this momentum, the firm plans to open 6–8 additional kiosks across strategic high-footfall locations as an extension of its existing retail network.

The expansion was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company intends to leverage its existing Franchise-Owned Franchise-Operated (FOFO) partner network to support the rollout. Local franchise partners will manage the kiosks in their respective markets, helping strengthen execution, improve working capital efficiency, streamline supply chain operations, and enhance local market ownership.

Strategic Benefits

The kiosk model aligns with recode studios ' strategy of pursuing asset-light expansion, enabling faster market penetration without significantly increasing operating complexity. The format allows the company to strengthen brand visibility in premium retail destinations while maintaining operational efficiency. Dheeraj Bansal, Chairman & Managing Director, stated that kiosks offer higher throughput at a lower operating cost while providing strong visibility in locations such as malls.

Operational Details

The rollout relies on the company's established omnichannel presence and its network of local partners. By utilizing the FOFO model, the company aims to ensure better working capital discipline and smoother supply chain operations. The initial kiosks are located at Omaxe Connaught Place in Greater Noida and Omaxe Chowk in Chandni Chowk, Delhi.

Recode Studios Limited offers a diverse portfolio of over 350 SKUs across cosmetics, skincare, and personal care categories. The company focuses on product innovation, branding, marketing, and distribution while leveraging third-party manufacturing capabilities.

Recode Studios has submitted the transcript of its earnings conference call for the half-year and year ended March 31, 2026, to BSE Limited. The call, held on June 3, 2026, was led by Chairman and Managing Director Dheeraj Bansal and CFO Narinder Singh. The company reported a 67% year-on-year increase in revenue to ₹80 crore for FY26, up from ₹48 crore in the previous year. Profit after tax (PAT) surged 260% to ₹11.22 crore from ₹3.11 crore in FY25, while EBITDA grew to ₹16 crore from ₹6 crore in the same period.

Financial Performance

The company improved its EBITDA margin to 20% in FY26 from 13% in the previous year, while the PAT margin expanded to 14% from 6.5%. The return on equity (ROE) stood at 78% and return on capital employed (ROCE) was 59% for the year. On a half-yearly basis, revenue for H2 FY26 reached ₹43 crore compared to ₹29 crore in H2 FY25.

Strategic Outlook

Management stated that the recent IPO proceeds are being deployed primarily towards working capital and improving product availability. The company is targeting at least 50% growth in 2027, supported by demand momentum and deeper market penetration. Key focus areas include improving product availability in South India, North East India, and Central India, as well as strengthening presence in modern trade and quick commerce channels.

Recode Studios operates with an asset-light model, driving over 70% of its online revenue through its own website. The company currently manages 22 retail stores, including three COCO stores and 19 FOFO stores, alongside six warehouses across India. Management noted that the FOFO franchise model has been paused in favor of opening dark stores to optimize rental and operational costs. The company is also investing in a new warehouse in Ludhiana, expected to commence operations in April 2027.