Beauty Garage IPO

Beauty Garage has a strong market presence with over 13000 salons in India.     

In-house capabilities such as product formulation, research and development, manufacturing, marketing and branding help the company gain stronger control over quality as well as operating costs.  

The Company’s focused portfolio helps it build a strong authority over high-value haircare treatments such as K9-Nanoplasty, Botoliss, and Scalp Sense that have a higher average order value.   

The company benefits from experienced promoters who have a deep understanding and possess industry expertise, along with a scalable business model.    

Has a strong and steady, growing online presence through e-commerce and direct-to-consumer channels. This can be helpful in penetrating Tier II and Tier III city markets.  

The company imports essential raw materials such as base formulations, semi-finished bulk ingredients and packaging materials from South American and Asian regions that are under non-exclusive arrangements. Any geopolitical disruptions, supply delay, and price renegotiation could directly impact production schedules.  

A large percentage of operating revenue is generated by a concentrated base. In FY26, the largest customer generated 18.77% of revenue from operations, while the top 5 and top 10 customers contributed 59.33% and 78.27%, respectively. The loss or material reduction in purchase orders can trigger a steep drop in top-line revenue.  

Cost of raw materials procured from overseas stood at ₹191.22 million in FY26 (19.73% of revenue from operations), and total absolute foreign currency exposure reached ₹210.79 million. The company operates without any formal hedging policy or forward contracts, making them vulnerable to volatility in exchange rates or hikes in customs/import duties. 

Out of the fresh issue proceeds, ₹911.57 million is allocated towards covering the setup costs of the new manufacturing facility at Vasai (West). The overall project cost and timelines are based entirely on management estimates and have not been appraised by any bank or external financial institution. Delays in securing utility approvals (such as industrial water connections), or failure to generate sufficient post-commissioning demand could cause long-term asset under-utilization, elevated fixed depreciation costs, and reduced return on capital. 

The company has noted recurring mid-tenure resignations of its statutory auditors across consecutive financial years. Unexplained auditor turnover before the completion of full tenures can raise corporate governance red flags, diminish investor confidence, and invite heightened regulatory scrutiny during and after the public issue.