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