Riyaasat Lifestyle files DRHP for SME IPO to fund expansion
Riyaasat Lifestyle Limited filed its DRHP for an SME IPO opening June 18, 2026, to raise ₹12.47 Cr for new showrooms and ₹9.50 Cr for working capital. The ethnic wear firm reported revenue of ₹27.87 Cr and PAT of ₹4.29 Cr for the 10 months ended January 2026. Key risks include 100% geographic revenue concentration in Western India and negative operating cash flows.
*this image is generated using AI for illustrative purposes only.
Riyaasat Lifestyle Limited has filed its Draft Red Herring Prospectus (DRHP) for an SME IPO to fund geographic expansion and working capital requirements. The Ahmedabad-based ethnic wear company, incorporated in 2021, aims to utilize the net proceeds to establish four new showrooms in Mumbai, Surat, Hyderabad, and Bengaluru, thereby diversifying its revenue concentration beyond Western India. The IPO is scheduled to open on June 18, 2026, and close on June 22, 2026.
Financial Performance
The company has demonstrated consistent revenue growth since its inception. Revenue from operations increased from ₹20.93 Cr in FY2023 to ₹27.87 Cr in the 10-month period ended January 2026. Profitability has also improved significantly, with Profit After Tax (PAT) rising from ₹1.32 Cr in FY2023 to ₹4.87 Cr in FY2025. For the 10 months ended January 2026, the company reported a PAT of ₹4.29 Cr and a PAT margin of 15.25%.
| Period | Revenue from Operations (₹ Cr) | Total Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) |
|---|---|---|---|---|
| FY2023 | 20.93 | 20.94 | 1.32 | 6.30% |
| FY2024 | 22.88 | 23.34 | 4.08 | 17.49% |
| FY2025 | 24.80 | 25.19 | 4.87 | 19.33% |
| 10M FY2026 | 27.87 | 28.13 | 4.29 | 15.25% |
Objects of the Issue
The company plans to deploy the IPO proceeds towards specific growth-oriented objectives. A total of ₹12.47 Cr is allocated for capital expenditure to set up the new showrooms. Additionally, ₹9.50 Cr is earmarked for working capital requirements to support inventory management and operational costs. A portion of the funds will also be utilized for general corporate purposes.
| Purpose | Amount (₹ Cr) |
|---|---|
| Setting up 4 new Stores | 12.47 |
| Working Capital Requirements | 9.50 |
| General Corporate Purpose | Not Specified |
Risk Factors
Investors should note several material risks disclosed in the filing. The company currently derives 100% of its revenue from Western India, with Gujarat alone contributing 67.13% of total revenue as of January 2026. This geographic concentration poses a risk if the company fails to replicate its success in new regions. Furthermore, the company reported negative cash flows from operating activities in three of the four reported periods, amounting to ₹272.60 lakhs for January 2026, primarily due to inventory build-up. The debt-to-equity ratio also increased sharply to 3.38x in the 10 months ended January 2026 from 1.59x in FY2025.
Business Overview
Riyaasat Lifestyle Limited operates through a multi-channel model comprising exclusive offline showrooms and an online presence. The company specializes in blending traditional Indian craftsmanship with contemporary design, offering products such as Sherwani, Kurta Pyjama, and Lehenga Choli. Men's ethnic wear contributes 60.18% of the company's revenue. The management team includes Gaurang Ramanbhai Galiya as Managing Director and Ramanbhai Nanubhai Galiya as Chief Executive Officer.
How will the company address the challenge of replicating its Western India success in highly competitive markets like Mumbai and Bengaluru?
What specific strategies will be implemented to manage the rising debt-to-equity ratio and improve negative operating cash flows post-IPO?
Will the geographic expansion trigger a shift in the product mix to cater to regional preferences in South and North India?
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