Riyaasat Lifestyle Limited IPO - Business Overview, Insight and Education

Company Overview

Riyaasat Lifestyle Limited designs and manufactures ethnic wear in-house, while also using third-party job workers for production activities such as cutting, embroidery, stitching and finishing.

In simple words, Riyaasat Lifestyle is a branded ethnic wear company. Its business depends on wedding season demand, festive buying, store location, brand value, product design, quality, inventory management, working capital and retail expansion.

Riyaasat Lifestyle Limited was incorporated on October 23, 2021.

The registered office of the company is located at 01/GF, Time Square, B/S. Pariseema, C.G. Road, Ahmedabad, Gujarat.

Promoters

1. Gaurang Ramanbhai Galiya
2. Ramanbhai Nanubhai Galiya
3. Sobhanaben R Galiya

The company operates under the Riyaasat brand and has built its business around ethnic apparel, especially men’s celebration wear.

What Does Riyaasat Lifestyle Do?

Riyaasat Lifestyle designs, manufactures and sells ethnic wear products.

1. Sherwani
2. Indo-western wear
3. Kurta Set
4. Suit, Tuxedo and Waist Coat
5. Lehenga Choli
6. Men’s ethnic apparel
7. Women’s ethnic apparel
8. Wedding and celebration wear
9. Customized ethnic wear
10. Ready-to-wear ethnic apparel

The company initially focused on men’s ethnic wear and later expanded into womenswear and customization services.

Core Business - Men’s Ethnic Wear

Riyaasat Lifestyle’s core business is men’s ethnic wear.

The company generates a major part of revenue from men’s celebration wear products such as Sherwani, Indo-western and Kurta Set.

For the period ended January 31, 2026, Lehenga Choli, Sherwani, Indo-western and Kurta Set together contributed Rs. 1,677.17 lakhs, equal to 60.18% of revenue from operations.

Brand - Riyaasat

The Riyaasat brand is important to the company’s business.

In ethnic wear, brand perception matters because customers usually look for design, quality, fit, finishing, premium appearance and occasion suitability.

The company positions its products in the mid-to-high range segment. This means customer trust, store experience, design freshness and product quality are very important.

Store-Based Business Model

Riyaasat Lifestyle operates through exclusive outlets and retail stores.

Its stores are located in premium locations in cities such as Ahmedabad, Vadodara and Mumbai.

The company depends on physical store experience because ethnic wear buying is often occasion-based. Customers may prefer to try products, check fabric, finishing, fitting and customization before purchase.

The company also generates a small portion of revenue from online sales, but physical stores remain the main revenue channel.

Online Sales

Riyaasat Lifestyle has entered online sales through its website.

However, online sales contribution is still low compared with store sales.

For the period ended January 31, 2026, online sales contributed 2.90% of revenue. In FY2025, online sales contributed 1.85%.

Geographic Concentration

Riyaasat Lifestyle has strong concentration in the western region of India.

Manufacturing Model

Riyaasat Lifestyle designs and manufactures ethnic wear in-house.

However, it also uses third-party daily job workers for different stages of production.

1. Cutting
2. Embroidery
3. Stitching
4. Finishing
5. Other production-related work

For the period ended January 31, 2026, job work expenses were Rs. 252.91 lakhs, equal to 11.01% of total expenses.

Third-Party Supplier and Vendor Dependency

The company relies on third-party suppliers and vendors for raw materials, finishing, dyeing, printing, embroidery, logistics and other production-linked activities.

The company does not have long-term agreements or exclusivity arrangements with many suppliers and vendors.

Top 10 third-party suppliers contributed 28.32% of total purchases for the period ended January 31, 2026. In FY2025, they contributed 37.23%.

Seasonal Demand

Riyaasat Lifestyle operates in ethnic and celebration wear.

This business is highly seasonal because demand is linked to wedding seasons, festivals, family functions, cultural events and celebration buying.

A large portion of sales may happen during key wedding and festive periods.

Leasehold Store Risk

The company operates stores, registered office and workshops on a leasehold basis.

Lease expenses were Rs. 262.77 lakhs for the period ended January 31, 2026, representing 11.44% of total expenses.

If the company cannot renew leases, comply with lease terms or find suitable new locations at reasonable rent, store operations and expansion plans may be affected.

Expansion Plan

Riyaasat Lifestyle intends to open new stores.

The company plans to open 4 stores and has disclosed fit-out requirements for these planned stores.

Store expansion can support growth if locations are selected properly and new stores reach break-even within a reasonable time.

Objects of the Issue

1. Funding capital expenditure for fit-outs of new stores
2. Working capital requirements
3. General corporate purposes
4. Issue-related expenses

The IPO is closely linked to retail expansion and working capital funding.

The company has not identified alternate financing arrangements for the objects of the issue. Therefore, any shortfall or delay in IPO proceeds may delay expansion plans.

Working Capital Requirement

Riyaasat Lifestyle’s business is working-capital intensive.

1. Inventory
2. Raw materials
3. Finished goods
4. New showroom inventory
5. Receivables
6. Store operations
7. Job work expenses
8. Rent and operating expenses

The company proposes to use Rs. 950.00 lakhs from IPO proceeds for working capital in FY2027. This shows that inventory and expansion require cash support.

Financial Performance

The positive point is that the company has shown improvement in revenue and profitability.

However, investors should also study cash flow, working capital, debt and store-level execution.

Cash Flow

Negative operating cash flow means profit is not fully converting into cash in certain periods.

Debt Position

As of January 31, 2026, total debt was Rs. 3,896.52 lakhs.

Long-term debt was Rs. 2,744.44 lakhs and short-term debt was Rs. 1,152.08 lakhs.

The total debt-equity ratio was 2.24, while the long-term debt-equity ratio was 1.58.

Key Strengths

1. Focused Ethnic Wear Brand: Riyaasat Lifestyle has built its business around ethnic and celebration wear, especially men’s ethnic wear.
2. Wedding and Festive Demand: The company operates in a category linked to Indian weddings, festivals and family functions.
3. Brand Presence in Western India: The company has built meaningful presence in Gujarat and Maharashtra markets.
4. Store-Led Retail Experience: Ethnic wear is a touch-and-feel category where customers often prefer store visits, trials and customization support.
5. Revenue Growth: Revenue from operations increased from Rs. 2,093.49 lakhs in FY2023 to Rs. 2,480.46 lakhs in FY2025 and Rs. 2,786.98 lakhs for the period ended January 31, 2026.
6. Improved Profitability: PAT improved from Rs. 132.17 lakhs in FY2023 to Rs. 486.64 lakhs in FY2025.
7. Fresh Issue Only: The IPO is a fresh issue with nil OFS. IPO proceeds are meant for company purposes.
8. Expansion Opportunity: The company plans to open new stores, which may support growth if executed well.

Key Risks

1. Product Concentration: A major portion of revenue comes from ethnic wear products such as Lehenga Choli, Sherwani, Indo-western and Kurta Set.
2. Men’s Ethnic Wear Dependency: The company’s business has historically been focused on men’s ethnic wear. Changes in customer preference or trend can affect sales.
3. Seasonal Demand Risk: Sales depend heavily on weddings, festivals and celebration seasons.
4. Regional Concentration: The company derives a large part of revenue from Gujarat and Maharashtra.
5. Job Worker Dependency: The company uses daily job workers for production stages such as cutting, embroidery, stitching and finishing.
6. Third-Party Supplier Risk: The company depends on third-party suppliers and vendors without long-term exclusivity arrangements.
7. Brand and Trademark Risk: The Riyaasat brand is critical to business success. Any brand damage, trademark dispute or negative publicity can affect growth.
8. Negative Cash Flow: The company has reported negative operating cash flow in some periods, including the period ended January 31, 2026.
9. Working Capital Intensive Business: The company needs significant funds for inventory, store operations and expansion.
10. Leasehold Store Risk: Stores, workshops and registered office are on lease.
11. Expansion Execution Risk: The company plans to open new stores, but new stores may take time to break even.
12. Online Presence Risk: Online sales contribution is still low.
13. Competitive Industry: Ethnic wear is competitive, with national brands, regional brands and unorganized local players.
14. SME Listing Risk: This is a BSE SME IPO. SME stocks may have lower liquidity, higher volatility and higher exit risk compared with mainboard IPOs.