IPO closes on 2 Sep'26
Purple Style Labs Limited
Minimum Investment
₹ 14,950 / 26 shares
Our Verdict:
Avoid
- Purple Style Labs operates Pernia's Pop-Up Shop, a multi-brand luxury omnichannel fashion platform focused on Indian wedding and occasion wear; revenue moved from ₹504 crore (FY24) to ₹490 crore (FY25) to ₹557.84 crore (FY26), while net losses widened every year, reaching ₹285.40 crore in FY26.
- The Company has stayed EBITDA-positive in all three years, meaning the widening net loss is driven substantially by items below the operating line (including a large ESOP-related exceptional charge in FY25) rather than the core retail business itself losing money on an operating basis — though EBITDA margin has been under pressure.
- § Price Band ₹546–₹575; Issue of ₹680 crore, entirely Fresh Issue (no OFS); Lot Size 26 shares. Anchor Aug 28, Opens Aug 31, Closes Sept 2, tentative Listing Sept 7, 2026 on BSE/NSE. GMP ~₹25 (~4.3%) as of Aug 31.
- Revenue growth has come from a shrinking base — customers fell from 92,672 (FY24) to 66,713 (FY26) and orders fell from 136,622 to 95,565 — offset by rising average order value and a deliberate pruning of the designer roster (1,910 to 1,109 brands), which has also concentrated GMV further into the top designers.
- § A genuinely differentiated luxury-fashion category position and a business that stays EBITDA-positive are real positives, but at a rich multiple of FY26 sales the valuation is not cheap for a company with negative net worth, widening reported losses, and a customer base that is shrinking even as spend-per-order rises — profitability visibility remains limited until the newer Experience Centres mature enough to absorb their fixed costs.
About the company
Founded in
1 Aug'15
Managing director
Abhishek Agarwal
- Purple Style Labs operates Pernia's Pop-Up Shop (PPUS), a multi-brand luxury omnichannel fashion platform offering a curated portfolio of designer womenswear, menswear, jewellery, accessories and kidswear, with a focus on wedding and occasion wear.
- As of March 31, 2026, the Company sourced products from 1,109 active designer brands across 208,490 SKUs, including designers such as Seema Gujral, Anushree Reddy, Amit Aggarwal and Rohit Gandhi & Rahul Khanna.
- The Company operates 14 large-format Experience Centres (20,000–60,000 sq. ft.) in Mumbai, Delhi and New York, alongside its website, mobile application and other digital channels, serving customers across domestic and international markets.
- Founded by Whole-time Director & CEO Abhishek Agarwal, who holds approximately 27.1% of pre-Offer equity; other shareholders include Volrado Venture Partners, Abhinav Agarwal and Singularity Growth Opportunities Fund.
STRENGTHS
- Differentiated Luxury Fashion Platform: Operates Pernia's Pop-Up Shop (PPUS), a curated multi-brand luxury fashion platform focused on Indian wedding and occasion wear, sourcing from over 1,100 active designer brands.
- Omnichannel Model: Combines an online platform (website, app, digital channels) with 14 physical Experience Centres in Mumbai, Delhi and New York, offering an integrated shopping experience across domestic and international markets.
- Rising Average Order Value: PPUS average order value grew from approximately ₹4,551 (FY24) to ₹7,550 (FY26), a CAGR of 28.80%, reflecting a shift toward higher-value transactions.
- Consistently EBITDA-Positive Core Business: The Company has remained EBITDA-positive in each of FY24, FY25 and FY26, even as reported net losses widened due to items below the operating line, including ESOP-related exceptional costs.
- Experienced Management and Notable Investor Base: Led by Whole-time Director & CEO Abhishek Agarwal, supported by a management team with an average tenure of approximately seven years, and backed by investors including Volrado Venture Partners.
RISK FACTORS
- Widening Losses: Net loss grew every year — ₹47.71 crore (FY24) → ₹188.38 crore (FY25) → ₹285.40 crore (FY26) — with negative retained earnings of ₹710.29 crore as of March 2026 despite the underlying business remaining EBITDA-positive in all three years.
- Shrinking Customer and Designer Base: Total customers fell from 92,672 (FY24) to 66,713 (FY26), orders fell from 136,622 to 95,565, and the active designer count fell from 1,910 to 1,109 over the same period; growth has come from higher average order value on a smaller base rather than more customers or orders.
- Rising Designer Concentration: The top 10 designers’ share of GMV rose from 21.8% (FY24) to 30.2% (FY26), and the top 100 designers’ share rose from 61.7% to 77.6%, increasing dependence on a smaller set of brand relationships.
- Negative Operating Cash Flows: The Company reported negative cash flow from operating activities in each of FY24, FY25 and FY26.
- High Fixed-Cost, Experience-Centre Model: The Company operates large-format Experience Centres (20,000–60,000 sq. ft.) carrying meaningful lease and fixed-cost obligations; profitability depends on these centres maturing enough to absorb their fixed costs, which has not yet been demonstrated.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹680 crore
Fresh Issue
₹ ₹680 crore
OFS
₹ Not Applicable
Price range
₹ 546 - 575
Lot size
26 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹680 crore) are proposed to be used primarily to support lease payments for Experience Centres and marketing expenditure, alongside technology investment and general corporate purposes (details and exact allocation to be finalised upon determination of the Issue Price).
Dates
Bidding open
31 Aug'26
Bidding close
2 Sep'26
Allotment date
3 Sep'26
Refund date
4 Sep'26
Listing
4 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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