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Can Purple Style Labs IPO deliver long-term growth for high-risk investors?

By Sohail Khan 31 August 2026, 6:17 am

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Business News›Markets›IPOs/FPOs›Can Purple Style Labs IPO deliver long-term growth for high-risk investors?

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Can Purple Style Labs IPO deliver long-term growth for high-risk investors?
Synopsis

Purple Style Labs plans a ₹680 crore initial public offering to fund its expansion. The luxury fashion platform operates under the Pernia's Pop-Up Shop brand name. Revenue has grown, but net losses and debt have also significantly increased. The company faces potential impacts from international trade policy changes. Investors may await clearer financial performance before committing capital.

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Can Purple Style Labs IPO deliver long-term growth for high-risk investors? <br>

ET Intelligence Group: Purple Style Labs, a multi-brand luxury fashion platform, plans to raise ₹680 crore through a fresh issue to pay for lease liabilities of experience centres, offices and marketing expenses. The promoter group's stake will fall to 22.7% after the IPO from 26.3%. It operates under the brand name 'Pernia's Pop-Up Shop'. Nearly 30% of the revenue comes from repeat customers. Any changes in international trade policies or trade tariffs could affect the business as around 16% of the revenue comes from the US and UK. The company has cash flow deficit and is yet to generate profit. Given these factors, investors may wait to see clarity in the financials.

ET Bureau

Business

Incorporated in 2015, Purple Style Labs offers a curated portfolio of luxury fashion products across womenswear, menswear, jewellery, accessories and kidswear, with a focus on wedding and occasion wear. It sourced products from 1,109 active designer brands as of March 2026, including Seema Gujral, Anushree Reddy, Amit Aggarwal and Rohit Gandhi & Rahul Khanna. Top 10 designer brands contribute 30% to revenue. Around 78% of the revenue comes from women's wear, 18% from men's wear and rest from jewellery, accessories and kidswear. It has 14 experience centres, 12 of which are in India, one is in London and one in New York. Nearly four-fifth of the revenue comes from India.

Financials

Revenue from operations rose 5.2% annually to ₹557.8 crore while operating profit before interest, tax, depreciation and amortization (EBITDA) declined 2% to ₹30.4 crore between FY24 and FY26. EBITDA margin dropped to 5.4% in FY26 from 6.3% in FY24. Net loss widened to ₹285.4 crore in FY26 from ₹47.7 crore in FY24. Average order value jumped to ₹75,500 in FY26 from ₹45,500 in FY24. The company's operating cash flow deficit widened to ₹34.9 crore in FY26 from ₹31.3 crore in FY24, primarily driven by the strategic shift towards large-format experience centres, which led to higher security deposit payments, increased accumulation of GST input credit, and higher inventory levels. Net debt more than tripled to ₹355.8 crore from ₹113.1 crore over FY24-26.

Valuation

Given the absence of profits, the price-to-earnings (P/E) multiple is not a relevant valuation metric. Further, it has no directly comparable listed peers in India. The stock is valued at a price-to-sales (P/S) multiple of 8.3, significantly higher than Go Fashion (India), a listed apparel retailer, which trades at a P/S multiple of 2.1.

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