Purple Style Labs IPO: Mounting Losses, Higher Debt And Womenswear Dependence Emerge As Key Risks
New Delhi: Purple Style Labs' ₹680-crore initial public offering opened for subscription on Monday, but widening losses, rising borrowings and heavy dependence on womenswear are among the key risks investors may need to consider. According to the company's red herring prospectus (RHP), its consolidated loss widened sharply to ₹285.40 crore in 2025-26 from ₹188.38 crore in FY25 and ₹47.71 crore in…
In its debut on the stock market, Purple Style Labs unveiled a ₹680-crore initial public offering on August 31. Nevertheless, investors should weigh the risks associated with the firm's expanding losses, mounting debt and reliance on womenswear. According to the prospectus, losses ballooned to ₹285.40 crore in the fiscal year 2025-26, up from ₹188.38 crore in FY25 and ₹47.71 crore in FY24.
The company's borrowing spiked to ₹371.40 crore as of March 31, 2026, up from ₹112.79 crore a year earlier and ₹116.33 crore in FY24. Despite an uptick in total revenue to ₹567.07 crore in FY26 from ₹494 crore in FY25, EBITDA fell to ₹30.37 crore from ₹41.99 crore. A significant concern is the firm's heavy reliance on womenswear, which made up 77.7 percent of its gross merchandise value in FY26.
The prospectus warns that shifting consumer tastes, reduced demand, or failed trend forecasting could adversely impact sales and profitability. Furthermore, the company is confronted with intellectual property risks following a notice from Pernia Qureshi and the seller requesting the termination of a licence agreement related to the Pernia's Pop-Up Shop brand.
The IPO is set to remain open until September 2 and the shares will be listed on the BSE and NSE on September 7.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
