Recode Studios Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Recode Studios Ltd filed with BSE on 08 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Recode Studios reported FY26 revenue of Rs 80 crore versus Rs 48 crore in FY25, a 67% year-on-year increase, with EBITDA growing to Rs 16 crore and PAT rising to Rs 11.22 crore. Management attributed the improvement to deeper market penetration, channel expansion, and operating leverage, and highlighted a stronger second half driven by seasonal demand in color cosmetics. The company also discussed its asset-light, omni-channel model spanning online, COCO/FOFO offline stores, and B2B partners such as Nykaa.
Numbers mentioned
Revenue: 80 crores (FY26)
p. 5
“we did 48 crores in 2025 and 80 crores in 2026, which is a 67% year-on-year growth.”
Narinder Singh, page 5 of the filed PDF · View the filing
EBITDA: 16 crores (FY26)
p. 5
“Our EBITDA in 2025 was 6 crores and in 2026 it was 16 crores.”
Narinder Singh, page 5 of the filed PDF · View the filing
PAT: 11.22 crores (FY26)
p. 5
“Our PAT in 2025 was 3.11 crores and in 2026 it was 11.22 crores, which is a 260% year-on-year growth in PAT.”
Narinder Singh, page 5 of the filed PDF · View the filing
EBITDA margin: 20% (FY26)
p. 5
“Regarding the EBITDA margin, in FY25 it was 13%, and in FY26 it reached 20%.”
Narinder Singh, page 5 of the filed PDF · View the filing
PAT margin: 14% (FY26)
p. 5
“Regarding the PAT margin, in FY25 it was 6.5% and in FY26 it was 14%.”
Narinder Singh, page 5 of the filed PDF · View the filing
ROE: 78% (FY26)
p. 5
“Our ROE for 2025-26 is 78% and our ROCE is 59%.”
Narinder Singh, page 5 of the filed PDF · View the filing
H2 Revenue: 43 crores (H2 FY26)
p. 5
“On a half-yearly basis, our revenue in H2 FY25 was 29 crores and in H2 FY26 it is 43 crores.”
Narinder Singh, page 5 of the filed PDF · View the filing
Number of retail stores: 22 stores (3 COCO, 19 FOFO)
p. 3
“we currently have 22 retail stores, including three COCO stores we are currently operating, and 19 FOFO stores.”
Dheeraj Bansal, page 3 of the filed PDF · View the filing
Marketing spend as percentage of revenue: 20%
p. 7
“we have set a guideline of spending 20% of our revenue on marketing.”
Dheeraj Bansal, page 7 of the filed PDF · View the filing
Month-on-month repeat purchase rate: 40%
p. 14
“Month-on-month, we have a 40% repeat rate.”
Dheeraj Bansal, page 14 of the filed PDF · View the filing
Average Order Value: 800 rupees
p. 14
“if we previously had a cart of 700 rupees, it is now an 800-rupee cart.”
Dheeraj Bansal, page 14 of the filed PDF · View the filing
Dead inventory: around 1%
p. 10
“Our historical data shows that dead inventory was around 1%.”
Dheeraj Bansal, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — at least 50% growth · 2027
stated firmly by Dheeraj Bansal
p. 4
“We are targeting at least 50% growth in 2027 and we are hoping to achieve this number in H1 as well, backed by demand momentum, deeper market penetration, new channels, and an expanding distribution network.”
Dheeraj Bansal, page 4 of the filed PDF · View the filing
EBITDA margin — same as FY26 level · next 2-3 years
stated as an aspiration by Dheeraj Bansal
p. 12
“Yes, that is the EBITDA we are projecting and trying to maintain.”
Dheeraj Bansal, page 12 of the filed PDF · View the filing
Online-offline sales split — 50-50 · this financial year
stated as an aspiration by Dheeraj Bansal
p. 6
“I am hoping that during this fiscal year, the split will reach 50-50.”
Dheeraj Bansal, page 6 of the filed PDF · View the filing
Ludhiana warehouse commencement — April 2027
stated firmly by Dheeraj Bansal
p. 4
“the planned Ludhiana warehouse which is expected to commence operations from April 2027.”
Dheeraj Bansal, page 4 of the filed PDF · View the filing
Quick commerce foray — next one to two months
stated firmly by Dheeraj Bansal
p. 4
“we will also foray into quick commerce in the next one to two months.”
Dheeraj Bansal, page 4 of the filed PDF · View the filing
New product launches — 20 to 25 products · next 6 months
stated firmly by Dheeraj Bansal
p. 11
“there are around 20 to 25 products currently in the pipeline that we will launch in the next 6 months.”
Dheeraj Bansal, page 11 of the filed PDF · View the filing
Modern trade vertical setup — dedicated team for modern trade · next 10 to 15 days
stated firmly by Dheeraj Bansal
p. 16
“In the next 10 to 15 days, we will have a dedicated modern trade vertical with its own team, similar to our teams for General Trade or online channels.”
Dheeraj Bansal, page 16 of the filed PDF · View the filing
Revenue CAGR — similar CAGR as previously followed · next 3 years
stated as an aspiration by Dheeraj Bansal
p. 16
“We are projecting for the same trajectory we have followed previously.”
Dheeraj Bansal, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said they will continue with the asset-light model and are strengthening presence in previously weak regions like South and Central India.
Answered by Dheeraj Bansal
Asked by Deepak Poddar: Whether the company prefers asset-heavy or asset-light growth and how the sales channel mix will evolve.
p. 5
“We will continue to operate under the same asset-light model and follow the same trajectory.”
Dheeraj Bansal, page 5 of the filed PDF · View the filing
Management said margins should remain consistent as online and offline channels carry similar cost structures.
Answered by Dheeraj Bansal
Asked by Deepak Poddar: How EBITDA margins will trend given the online-offline mix shift.
p. 6
“Most likely, the EBITDA will remain the same because marketplaces also charge a significant commission from us, and we follow a similar model in offline channels.”
Dheeraj Bansal, page 6 of the filed PDF · View the filing
Management said margin improvement is not currently planned because excess EBITDA will be reinvested into marketing.
Answered by Dheeraj Bansal
Asked by Deepak Poddar: Whether EBITDA margin improvement can be expected as revenue scales.
p. 6
“EBITDA improvement is not currently on the cards because we will spend more on marketing and branding.”
Dheeraj Bansal, page 6 of the filed PDF · View the filing
Management said CAC is not defined per customer since sales come from multiple channels, and marketing spend is fixed at 20% of revenue.
Answered by Dheeraj Bansal
Asked by Tejas Shirodkar: How customer acquisition cost has trended and what levers are used.
p. 7
“Therefore, CAC is not defined on a per-customer basis. What we are doing is spending 20% of our revenue on advertising.”
Dheeraj Bansal, page 7 of the filed PDF · View the filing
Management said the FOFO franchise model has been stopped in favor of dark stores due to high rentals.
Answered by Dheeraj Bansal
Asked by Tejas Shirodkar: What revenue and payback thresholds define a successful store, and the status of FOFO stores.
p. 7
“However, we have now stopped the FOFO franchise model and are opening dark stores, which I mentioned earlier.”
Dheeraj Bansal, page 7 of the filed PDF · View the filing
Management said prior attempts on quick commerce were unprofitable and the company is developing its own quick commerce delivery instead.
Answered by Dheeraj Bansal
Asked by Rohit Balakrishnan: Why the company is not widely present on quick commerce platforms like Blinkit and Zepto.
p. 9
“It was burning a hole in our pockets. The Recode model is focused on being profitable.”
Dheeraj Bansal, page 9 of the filed PDF · View the filing
Management explained that FOFO stores buy on credit and repay over roughly 2-3 months, requiring working capital support.
Answered by Dheeraj Bansal
Asked by Rohit Balakrishnan: How receivables have grown and how FOFO store credit terms work.
p. 9
“Recode is there to support them, which is why I needed the money for working capital so that I can maintain my inventory and feed my FOFO stores so we do not run out of stock as the brand grows every day.”
Dheeraj Bansal, page 9 of the filed PDF · View the filing
Management attributed the improvement to better purchasing and bargaining power, but said margins will likely be reinvested into marketing rather than expanded further.
Answered by Dheeraj Bansal
Asked by Shubhanu Bangal: What drove the EBITDA margin improvement and whether it can continue.
p. 11
“We have purchased products more efficiently through bargaining and by determining better costings, which improved our margins.”
Dheeraj Bansal, page 11 of the filed PDF · View the filing
Management said 50% of online sales come through the company's own website.
Answered by Dheeraj Bansal
Asked by Shubhanu Bangal: What share of revenue comes from the company's own website.
p. 12
“50% of our total online sales are coming through our own website.”
Dheeraj Bansal, page 12 of the filed PDF · View the filing
Management said they track a 40% month-on-month repeat rate and rising average order value on the website channel, but lack such data for FOFO stores.
Answered by Dheeraj Bansal
Asked by Deepanshu Bhatia: What repeat purchase and average order value data the company tracks.
p. 14
“Month-on-month, we have a 40% repeat rate. The cart value is approximately 100 rupees higher than before.”
Dheeraj Bansal, page 14 of the filed PDF · View the filing
Management said sourcing has not been significantly disrupted and domestic sourcing may increase slightly but international sourcing will continue due to quality requirements.
Answered by Dheeraj Bansal
Asked by Hastin Mehta: Whether global sourcing from Germany, Taiwan, China, and Thailand faces supply chain disruption or currency impact.
p. 17
“The weightage of Indian sourcing might increase slightly, but both will continue because many color cosmetic products cannot yet be made in India with the specific quality we require.”
Dheeraj Bansal, page 17 of the filed PDF · View the filing
Management said the category's overall CAGR is 6-8% but the company has already been tracking a faster trajectory in recent months.
Answered by Dheeraj Bansal
Asked by Rohit - I-Thought PMS: Where confidence for 50% growth comes from given a slower-growing overall market.
p. 17
“The CAGR for the Beauty and Personal Care market is 6% to 8%, but we have already been following this trajectory for the last two months.”
Dheeraj Bansal, page 17 of the filed PDF · View the filing
Risks flagged
Seasonal weakness in color cosmetics sales during humid summer months affecting H1 performance.
p. 6
“the first half, H1, always remains a bit weak for color cosmetics because of the humid weather and summer.”
Dheeraj Bansal, page 6 of the filed PDF · View the filing
Quick commerce channel has historically been loss-making for the company and industry.
p. 12
“Quick commerce is currently a loss-making venture; we are still working on that.”
Dheeraj Bansal, page 12 of the filed PDF · View the filing
High rental costs made the FOFO franchise retail model less viable, prompting a shift to dark stores.
p. 7
“Being a single brand and not yet as large as others, we have to consider the high rentals.”
Dheeraj Bansal, page 7 of the filed PDF · View the filing
Difficulty sourcing certain high-quality raw materials domestically, requiring continued import dependence.
p. 17
“Achieving that quality in India is currently difficult as no manufacturer here possesses it, though we are in touch with every manufacturer in India.”
Dheeraj Bansal, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.