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.

Recode Studios Limited revised its standalone audited financial results for the financial year ended March 31, 2026, to rectify typographical errors in the initial filing dated June 3, 2026. The correction adjusted the net profit to ₹1,121.12 lakh from the previously reported ₹1,122.48 lakh. Revenue from operations remained unchanged at ₹7,994.99 lakh, a 67% increase from ₹4,779.81 lakh in FY25. The board approved the revised results under Regulation 33 of the LODR Regulations.

Financial Performance

The company's total income for FY26 stood at ₹8,005.82 lakh, up from ₹4,793.93 lakh in the prior year. Total expenses increased to ₹6,504.76 lakh from ₹4,350.48 lakh. Earnings per share (basic and diluted) were restated to ₹13.77 for FY26 from the earlier ₹13.79. RMSG & Associates, Chartered Accountants, issued an unmodified opinion on the financial statements.

Operational Highlights

Recode Studios operates through an omnichannel distribution network comprising 22 retail stores, including 3 COCO and 19 FOFO stores, and 6 warehouses across India. Online sales contributed 43.87% to total revenue in FY26, while FOFO stores accounted for 24.50%. The East Zone emerged as the fastest-growing contributor, comprising 27.18% of revenue, while the North Zone remained the largest region at 32.85%.

Asset Position

As of March 31, 2026, the company's total assets were valued at ₹3,547.17 lakh, compared to ₹2,317.62 lakh in the previous year. Inventories increased to ₹1,072.50 lakh from ₹907.80 lakh, while trade receivables rose to ₹1,537.95 lakh from ₹808.96 lakh. Cash and cash equivalents stood at ₹131.70 lakh.

Dividend Declaration

The board recommended a final dividend of ₹0.25 per share on 1,06,44,344 fully paid-up equity shares, aggregating to ₹26.61 lakh. The payout is contingent upon approval by shareholders at the ensuing Annual General Meeting.

Way Forward

Management expressed confidence in delivering 50%+ growth in FY27, backed by strong demand trends and deeper market penetration. Strategic deployment of IPO proceeds will focus on strengthening working capital, enhancing market reach, and supporting the next phase of growth. The company plans to expand its retail footprint through FOFO and COCO stores, increase focus on modern trade and quick commerce channels, and strengthen warehousing and distribution infrastructure, including the upcoming Ludhiana warehouse commencing operations from April 2027.