Beauty Garage IPO

Strengths · 7

• 01Revenue from operations grew from Rs 51.02 crore in FY2024 to Rs 60.21 crore in FY2025 and Rs 96.93 crore in FY2026, with year-on-year growth of 60.98% in FY2026.
• 02EBITDA margin rose from 27.69% in FY2024 to 33.16% in FY2025 and 43.33% in FY2026, while gross profit margin was 73.38% in FY2026.
• 03Profit after tax was Rs 31.62 crore in FY2026 against Rs 8.82 crore in FY2024, and the company had no borrowings at the end of FY2026.
• 04Operating cash flow was positive in all three years: Rs 5.56 crore in FY2024, Rs 12.85 crore in FY2025 and Rs 13.46 crore in FY2026.
• 05The salon network covers 13,044 salons in 272 cities, and the products are stocked at chains such as Lakme Salons and Toni & Guy.
• 06Online sales rose from Rs 4.10 crore in FY2024 to Rs 18.70 crore in FY2026, which is 17.89% of the FY2026 total.
• 07New SKUs launched in FY2026 brought in Rs 13.47 crore of revenue, which shows the product pipeline is adding sales.

Risks · 9

• 01Top customers are concentrated: Lucky Enterprises gave 18.77% and Shaws Distribution 13.91% of FY2026 revenue.
• 02Working capital days rose from 43.78 in FY2024 to 95.12 in FY2026, and days sales outstanding rose from 42.26 to 77.54, so cash is tied up in the business.
• 03Operating cash flow of Rs 13.46 crore in FY2026 is far below the profit after tax of Rs 31.62 crore.
• 04A major part of raw materials is imported, so import duties and exchange rate moves can hurt margins.
• 05The company depends on third-party suppliers for raw materials, packaging and semi-finished bulk products, and on third parties for distribution and delivery.
• 06The offer includes an offer for sale of up to 7,836,000 shares by the two promoters, whose average cost is Rs 0.44 per share, so that money goes to the sellers and not to the company.
• 07The only named use of the fresh issue is Rs 91.16 crore for the Vasai plant. The rest is general corporate purposes, with no amount specified yet.
• 08Revenue from operations is shown after a provision for post-sale price adjustments of Rs 7.57 crore deducted in FY2026, which depends on management estimates.
• 09Legal proceedings are pending against the company and its promoters, including 1 criminal proceeding and 2 statutory or regulatory proceedings against the company, and the amounts cannot be quantified.

Beauty Garage Limited is a Mumbai-based haircare company in the premium and salon-grade segment. It sells shampoo, conditioner, masks, hair oil, styling products, scalp care and hair treatment products. The products are meant for use inside salons and also for retail consumers.

The brand was started in 2019 by the promoters through a partnership firm, MJ Trading. The company was incorporated in 2021. Jigar Babubhai Ravaria and Mahesh Babubhai Ravaria, the promoters, each have over 14 years of experience in the personal care and beauty sector.

Products are sold under four main ranges. The K9 range gave Rs 41.69 crore of gross sales in FY2026, or 39.90%. The Shea range gave 26.10%, the Botoliss range 23.36% and the Scalp Sense range 3.86%. The company had 133 SKUs at the end of FY2026.

The company reaches 13,044 salons in 272 cities through 11 Super Stockists and 111 Distributors, and its operations extend across 29 states. Its products are stocked at salon chains such as Lakme Salons, Enrich, Jean Claude Biguine, Toni & Guy and Bounce Salons. Offline channels gave 82.11% of FY2026 sales and online channels gave 17.89%. Online was 7.85% in FY2024.

Beauty Garage runs one manufacturing facility at MIDC Industrial Area, Chakala, Andheri (East), Mumbai. It is setting up a second plant at Vasai (West), Maharashtra, which is the main use of the fresh issue money. The company has in-house research and development, packaging design and marketing teams. It has no subsidiary and no group company.

The industry

The Indian hair care market was valued at INR 322 Bn in FY 2020 and reached INR 495 Bn in FY 2025, a CAGR of 9.0%, according to the industry report in the offer document. The report expects it to grow at a CAGR of 10.6% to INR 819 Bn by FY 2030. Hair care is one of the largest segments of beauty and personal care in India, with a share of 23.5% in FY 2025.

Customer concentration: Lucky Enterprises gave 18.77% and Shaws Distribution 13.91% of FY2026 revenue from operations. Lucky Enterprises gave 16.42% in FY2025.