Two people have been charged after police uncovered nail-packed pipe bombs while investigating the alleged firebombing of a Sydney beauty clinic.

Emergency services were called to BeautiLab on Concord Rd at Concord West about 11.10pm on June 15 following reports of a fire.

Police allege an improvised explosive device (IED) had been detonated, causing minor damage to the business.

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No injuries were reported and the fire self-extinguished.

Officers established a crime scene and seized a large amount of shrapnel and other items believed to have been used in the construction of the device.

Police allege an improvised explosive device (IED) had been detonated at Beauti Lab. Credit: 7NEWS

Police executed search warrants at homes in Padstow and Bardia about 6am on Wednesday, arresting two people.

A 29-year-old man was arrested at the Padstow address, where police allegedly seized two fully formed IEDs, electronic devices, personal items and an Audi SUV believed to have been used in the alleged firebombing.

Burwood Police Area Command Commander Superintendent Christine McDonald said the devices were pipe bombs packed with nails and capable of being detonated.

McDonald said the man had a criminal history and was known to police for traffic and drug offences, as well as assaulting and intimidating police.

He was charged with possessing an explosive with intent to destroy property, damaging property by fire or explosive, and two counts of possessing or attempting to possess a prescribed restricted substance.

A 29-year-old man was arrested on Wednesday. Credit: NSW Police

He appeared before Bankstown Local Court on Wednesday, where he was refused bail.

A 31-year-old woman was arrested at the Bardia address, where police allegedly seized a large amount of peptides.

McDonald said the woman had traffic and drug-related matters on her record.

She was charged with possessing or attempting to possess a prescribed restricted substance and owner not disclose identity of driver/passenger.

She was refused bail and faced Liverpool Local Court on Wednesday.

Police said a large amount of peptides have been seized. Credit: NSW Police

McDonald said police believed the alleged firebombing was a targeted attack and investigations were continuing.

“We do believe that they could have been used at any time, so in terms of whether they were going to be used. One can only imagine that they would have been,” she said. 

“I’m just really proud that our officers have been able to get them before they were (detonated).

She said further arrests had not been ruled out.