Purple Style Labs Limited
RHP · filed 24 Aug 2026
Purple Style Labs Limited operates a fashion retail business that derives a substantial portion of its revenue from the womenswear category. The company is raising Rs 680 crore through a fresh issue with no offer for sale component. Despite a 5.17% revenue CAGR, the company reported a loss of Rs 285.40 crore in the latest fiscal year and has negative retained earnings. The draft prospectus highlights material risks including sustained negative cash flows, high debt-to-equity levels, and significant exceptional expenses related to employee stock options and expansion.
What stands out
Loss-making. The latest restated fiscal year reports a net loss.
High leverage. Debt-to-equity of 7.10x.
Risk factor. The Company has incurred losses and has negative retained earnings of ₹7,102.86 million as of March 31, 2026, and has sustained negative cash flows from operating activities in Fiscals 2024, 2025, and 2026.
Risk factor. The Company derives a substantial portion of its Total PPUS GMV from the womenswear category (77.70%, 75.66% and 77.88% in Fiscals 2026, 2025 and 2024 respectively), making its business dependent on this category.
Primarily fresh capital. 100% of the offer is fresh issue, so most proceeds fund the company.
How the offer is structured
Fresh issue
₹680 Cr
New capital into the company
OFS share
0%
- Investment in our wholly owned Subsidiary, PSL Retail for expenditure towards lease liabilities of Experience Centers, and back-end offices in India₹371 Cr
- Funding towards sales and marketing expenses to be incurred by our Company₹139 Cr
- General corporate purposes
Restated financials
Revenue
₹558 Cr
Latest fiscal year
Profit after tax
₹-285 Cr
Revenue CAGR
5.2%
Debt / equity
7.10
| Fiscal year | Revenue | EBITDA | PAT | Net worth |
|---|---|---|---|---|
| 2024 | ₹504 Cr | ₹-47.7 Cr | ₹39.5 Cr | |
| 2025 | ₹490 Cr | ₹-188 Cr | ₹117 Cr | |
| 2026 | ₹558 Cr | ₹-285 Cr | ₹-52.3 Cr |
Risks the company discloses
The Company has incurred losses and has negative retained earnings of ₹7,102.86 million as of March 31, 2026, and has sustained negative cash flows from operating activities in Fiscals 2024, 2025, and 2026.(Financial Condition)
The Company derives a substantial portion of its Total PPUS GMV from the womenswear category (77.70%, 75.66% and 77.88% in Fiscals 2026, 2025 and 2024 respectively), making its business dependent on this category.(Business Operations)
The Company has incurred exceptional items of ₹1,179.28 million in Fiscal 2026 and ₹1,227.68 million in Fiscal 2025 relating to employee share-based payment expense towards the grant of employee stock options.(Financial Condition)
The Company has realized impairment losses on the investment made in its Subsidiary, Purple Style Labs UK Limited.(Investment/Asset Value)
The Company has incurred a 31.26% increase in total expenses in Fiscal 2026 primarily due to an 84.42% increase in depreciation and amortisation expenses to ₹1,007.49 million and an 83.28% increase in finance costs to ₹970.87 million.(Financial Condition)
The Company has sustained negative cash flows from operating activities in Fiscals 2024, 2025, and 2026, primarily on account of the shift in strategy towards Large Format Experience Centres which resulted in an increase in payment of security deposits, accumulation of GST input credit, and increase in inventory.(Financial Condition)
The Company has incurred a 3.14% decline in total income in Fiscal 2025 largely due to a strategic shift away from lower-value products and reduced ancillary services.(Business Operations)
The Company has incurred exceptional items of ₹1,222.20 million in Fiscal 2024, which included sales and marketing expenses of ₹541.13 million, in connection with the expansion of Experience Centers.(Financial Condition)
How this document reads, dimension by dimension
Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.