Mukul Agrawal Makes Fresh Entry with Over 5% Stake in Stock That Doubled in 3 Months; Promoters Raise Stake, Management Targets 50% FY27 Growth

Indian equity markets witnessed sharp volatility on Monday, October 19, amid the Nifty weekly expiry. The Nifty 50 was trading at 23,068, down 77 points, while the Sensex declined 282 points to 74,442.

Amid the market fluctuations, Recode Studios Ltd, a company operating in the beauty and personal care segment, has attracted attention following a development in its latest shareholding pattern.

Fresh Entry by Mukul Agrawal in Recode Studios

According to the September 2026 shareholding pattern, Ace Investor Mukul Mahavir Agrawal's name has appeared among the public shareholders of Recode Studios, with a 5.64 per cent stake, representing 6,00,000 equity shares.

Another development is the increase in promoter shareholding, which rose from 65.02 per cent in May 2026 to 65.18 per cent in September 2026.

multibagger Stock in 3-Months

Recode Studios shares have gained 105.87 per cent over the past three months, delivering multibagger returns during the period.

What Does Recode Studios Do?

Recode Studios operates in India's beauty, coSMEtics and personal care industry. Its business primarily involves branding, sourcing and distributing products under the Recode brand.

The company, which was featured on Shark Tank India, offers more than 350 stock-keeping units (SKUs) across five categories, including face makeup, eye makeup, lip makeup, body care and accessories.

Recode follows an asset-light, omnichannel business model, combining online distribution with physical retail stores. As outlined in its June 2026 investor presentation, the company operates 22 retail stores, comprising three company-owned, company-operated (COCO) outlets and 19 franchise-owned, franchise-operated (FOFO) outlets, supported by six warehouses.

Online sales accounted for 43.87 per cent of total sales in FY26, while FOFO stores contributed 24.50 per cent. Notably, more than 72 per cent of online sales came through the company's own website and application.

India's Beauty and Cosmetics Industry Outlook

The company's expansion plans come against the backdrop of expected growth in India's beauty and cosmetics industry.

According to industry estimates presented by Recode Studios, citing Infomerics Analytics & Research, India's beauty and cosmetics market is projected to grow from USD 15.19 billion in 2024 to USD 27.75 billion by 2034, representing a compound annual growth rate (CAGR) of 6.21 per cent.

Rising disposable incomes, urbanisation, greater digital influence and changing consumer preferences as factors supporting demand for beauty and grooming products.

Financial Performance Shows Improvement

Turning to the company's financial performance, Recode Studios reported revenue from operations of Rs 7,994.99 lakh in FY26, compared with Rs 4,779.81 lakh in FY25, registering YoY growth of 67 per cent.

EBITDA increased to Rs 1,659.76 lakh from Rs 609.09 lakh, while profit after Tax (PAT) rose to Rs 1,122.48 lakh from Rs 311.18 lakh, representing growth of 260 per cent.

Profitability also improved, with the reported EBITDA margin expanding from 12.82 per cent in FY25 to 20.69 per cent in FY26. Meanwhile, net cash flow from operating activities stood at Rs 433.78 lakh in FY26, compared with Rs 302.45 lakh in the previous financial year.

Management's Growth Plans

Looking ahead, the management has outlined plans to expand its franchise and company-operated retail network, strengthen distribution and increase its presence across modern trade and quick-commerce platforms.

In the investor presentation, management guided for at least 50 per cent growth in FY27, supported by market expansion, improved product availability and wider distribution.

The company is also strengthening its Ludhiana warehouse and distribution network, with operations expected to commence from April 2027 onwards.

Disclaimer: The article is for informational purposes only and not investment advice.