Mumbai-based haircare firm Beauty Garage has filed draft papers for a ₹125 crore IPO. The company plans to use the majority of funds to set up a new manufacturing facility in Vasai, Maharashtra, following a significant jump in its FY26 profits.
Beauty Garage, a company specializing in salon-grade haircare products, has moved to tap the public markets. The Mumbai-headquartered business recently filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on July 28, seeking to raise ₹125 crore through a fresh issue of shares.
In addition to the fresh fundraise, the IPO includes an offer-for-sale (OFS) where promoters Jigar Babubhai Ravaria and Mahesh Babubhai Ravaria will each sell 39.18 lakh shares, totaling 78.36 lakh shares. This means existing owners are reducing a portion of their holdings as part of the public listing process.
Expansion Plans in Vasai
The central focus of this IPO is capital spending to boost production capacity. The company intends to direct approximately ₹91.1 crore of the net proceeds toward constructing a new manufacturing unit in Vasai, Maharashtra. Currently, the company manages its operations from an existing facility in Andheri, Mumbai. By establishing this new site, Beauty Garage aims to scale its manufacturing capabilities to support its growing network of over 13,044 salons across the country.
Financial Performance and Brand Mix
Beauty Garage has reported strong financial growth heading into this public offering. For the financial year ended March 2026, the company posted a profit of ₹31.6 crore, representing a 149 percent increase compared to the ₹12.7 crore reported in the previous fiscal year. Revenue from operations also saw notable growth, rising 61 percent to reach ₹96.9 crore in FY26, up from ₹60.2 crore in FY25.
The company’s revenue is driven by a diverse portfolio of salon-focused brands. During FY26, the K9 brand was the largest contributor, accounting for 40 percent of operational revenue. This was followed by the Shea brand at 26 percent, Botoliss at 23 percent, and Scalp Sense at 4 percent. Investors often look at this brand concentration to understand the company's reliance on specific product lines.
Strategic Considerations for Investors
While the company is reporting rapid growth, investors looking at the upcoming IPO will likely monitor several factors. The transition from a single manufacturing unit to a second location in Vasai involves execution risks, such as potential delays in construction or cost overruns that could impact the timeline for when the new capacity starts contributing to revenue.
Furthermore, the company operates in a competitive premium salon-grade haircare market where success depends heavily on maintaining brand loyalty among beauty professionals and salons. The next steps for the company will involve receiving regulatory observations from SEBI, finalizing the issue price, and determining the formal timeline for the IPO launch. Systematix Corporate Services is managing the offering, and future investor updates will likely focus on the commissioning schedule of the new Vasai facility and the sustainability of the company's profit margins as it scales its operations.