2 days ago
Purple Style Labs IPO Faces Losses, Debt and Womenswear Risks
Purple Style Labs is a fashion company offering shares to the public.
Its IPO opened on Monday and is priced between Rs 546 and Rs 575 per share.
The company lost more money in FY26 than in the two years before it.
It also borrowed much more money than it had previously.
Although its income grew, its EBITDA, a measure of operating performance, fell.
Most of its Pernia's Pop-Up Shop sales came from womenswear.
This means changing customer tastes could hurt the business.
The company also faces uncertainty over a licence connected to the brand.
Its expansion plans and agreements with designer brands create additional risks for investors.
Purple Style Labs reported a consolidated loss of Rs 285.40 crore in FY26, up from Rs 188.38 crore in FY25.
Total borrowings rose to Rs 371.40 crore as of March 31, 2026, from Rs 112.79 crore a year earlier.
Total income increased to Rs 567.07 crore, while EBITDA declined to Rs 30.37 crore in FY26.
Womenswear accounted for 77.7% of Pernia's Pop-Up Shop's GMV, creating exposure to changing fashion demand.
The Rs 680-crore IPO is entirely a fresh issue and will close on September 2, with tentative listing on September 7.
- Who
- Purple Style Labs, the fashion platform conducting the IPO; Pernia Qureshi and the seller are involved in a licence-related dispute.
- What
- Purple Style Labs launched a Rs 680-crore IPO amid widening losses, sharply higher borrowings and other business risks.
- Where
- The shares are proposed to be listed on the NSE and BSE; the report is from New Delhi.
- When
- The IPO opened on Monday, closes on September 2, and is tentatively scheduled to list on September 7; the reported financial results are for FY26.
- Why
- The company's financial losses, rising debt, womenswear concentration, licence uncertainty and expansion risks are factors investors may consider.
Key facts
- IPO size
- Rs 680 crore
- Price band
- Rs 546-575 per share
- FY26 loss
- Rs 285.40 crore, compared with Rs 188.38 crore in FY25 and Rs 47.71 crore in FY24
- FY26 borrowings
- Rs 371.40 crore as of March 31, 2026
- FY26 total income
- Rs 567.07 crore
- FY26 EBITDA
- Rs 30.37 crore, down from Rs 41.99 crore in FY25
- Womenswear GMV share
- 77.7% of Pernia's Pop-Up Shop GMV in FY26
- Issue and listing dates
- The IPO closes September 2; tentative listing is scheduled for September 7 on NSE and BSE
Sources
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