Purple Style Labs Ltd.

Purple Style Labs Limited

Incorporated in August 2015 and headquartered in Mumbai, Purple Style Labs Limited runs Pernia's Pop-Up Shop, a multi-brand luxury omni-channel fashion platform focused on Indian wedding and occasion wear. It bought the Pernia's Pop-Up Shop website and related intellectual property through an asset purchase in February 2018 and has since built a physical network alongside it. It sells womenswear, menswear, jewellery, accessories and kidswear sourced from 1,109 active designer brands across 208,490 SKUs as at 31 March 2026, holding no design or manufacturing of its own. The platform runs through 14 Experience Centres, 12 in India plus one each in London and New York, together with a website and mobile application. It served 66,713 customers on 95,565 orders in FY26 at an average order value of INR 75,505, and had 1,266 permanent employees. It is promoted by Abhishek Agarwal, who holds 26.09% pre-issue.

DRHP filed: September 22, 2025

RHP filed: August 24, 2026

IPO open & close: 31 August 2026 to 2 September 2026 (anchor book 28 August 2026)

Price band: INR 546 to INR 575 per share; face value INR 10; lot size 26 shares

Issue structure: Fresh issue of INR 680 cr; no offer for sale. Made under Regulation 6(2), so QIB 75%, NII 15%, retail 10%

Listing date (tentative): 7 September 2026 (BSE and NSE)

BRLM: Axis Capital Limited and IIFL Capital Services Limited

Registrar: KFin Technologies Limited

Auditor: Walker Chandiok & Co LLP, Chartered Accountants and Shah & Kathariya, Chartered Accountants (joint statutory auditors)

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Delta's View:

Limited Listing Gains | Skip GMP: 0% (2 September 2026)

Purple Style Labs (PPUS) sits in front of a large and fast-moving market. The RHP sizes Indian wedding and occasion wear at INR 2 lakh crore in FY26, projected at a 13% CAGR to INR 3.7 lakh crore by FY31, and the luxury tier is the fastest growing slice at a 25% CAGR, though it is only 5% of the market today. PPUS is the largest multi-brand luxury omni-channel platform in India by revenue and is well placed to take that shift, run by Abhishek Agarwal, an IIT Bombay engineer who has been running the business since incorporation in 2015. But every contract with its 1,109 designer brands is one year and non-exclusive, the designers set the retail price and it is held constant across the platform and their own stores, so the differentiation is thin. Growth over the last two years has been modest, with revenue up 10.6% to INR 557.84 crore and gross profit flat at INR 209.44 crore. We do not see a fresh growth trigger. Cash flow from operations has been negative in all three years, cumulatively negative INR 111.42 crore, and rent is where the money goes, at INR 126.76 crore in FY26 or 22.72% of revenue against gross profit of INR 209.44 crore. Charge that cash rent back above the line, as it sat before Ind AS 116, and EBITDA is negative in each of the last three years, at negative INR 96.40 crore in FY26 against a reported INR 30.37 crore. At INR 4,603.5 crore market cap, or 8.25x FY26 sales and 176.9x reported EBITDA, on a company with negative net worth of INR 52.28 crore we would like to skip the business as of now. If the unit economics and the valuations improve, we might revisit. 

● The business model is essentially retail aggregation. The company buys designer apparel from independent designers, on outright, back-order or consignment terms, and sells it under a curated luxury brand through its own online and offline channels. It does not design or manufacture, and it does not share revenue with the designers. The market it addresses is large, with the RHP sizing Indian wedding and occasion wear at around INR 2 lakh crore growing at a 13% CAGR.

● Revenue has seen a modest growth. It was INR 504.37 crore in FY24 and INR 557.84 crore in FY26, up 10.6% over two years. Gross profit was flat from INR 206.87 crore to INR 209.44 crore in the same period. Growth is price, not volume, and the customer base is shrinking. Orders fell 30.05% from 136,622 in FY24 to 95,565 in FY26, while average order value rose 65.90% from INR 45,513 to INR 75,505. Within the mix, womenswear priced above INR 1,00,000 grew from INR 186.57 crore to INR 311.70 crore of GMV and now accounts for 43.20% of the total, while womenswear below INR 35,000 nearly halved from INR 161.80 crore to INR 85.52 crore and the jewellery, accessories and kidswear bucket fell 30.51%. The company describes this as a deliberate move up the price ladder, which it is, but the effect is a smaller customer base buying dearer product.

● There is no same-store sales growth, no like-for-like, no sales per square foot, no store-level contribution, and no payback period mentioned. The Company is raising INR 371 crore to cover its lease liabilities till FY30. These metrics and company’s plans to improve them should be highlighted in order to better understand the future trajectory.

● The US fell 44.5% from INR 138.48 crore of GMV in FY24 to INR 76.82 crore in FY26, taking its share of the total from 22.27% to 10.65%. The FY26 figure includes roughly two months of trading from the Madison Avenue store, which opened in February 2026, while FY24 and FY25 were online only. So the underlying online decline is steeper than the headline.

● The business does not generate enough cash to service its rent and interest. Operating profit before working capital changes, which is the company's own preferred measure and which it cites as evidence of sustainability, was INR 38.81 crore in FY26. Against that, lease principal, lease interest and interest on borrowings together consumed INR 161.54 crore, leaving a gap of INR 122.73 crore. That gap was funded by borrowing: net new debt of INR 248.49 crore was raised during FY26.

● Cash flow from operations has been negative in each of the last three years, cumulatively negative INR 111.42 crore. After capex of INR 79.31 crore over the same period, cumulative free cash flow is negative INR 190.73 crore.

● The company opened four stores of 20,000 to 60,000 sq ft opened between June 2025 and March 2026 at Fort and Linking Road in Mumbai, South Extension in Delhi and Madison Avenue in New York. Lease rental attributable to Large Format Experience Centres in India rose from INR 10.04 crore in FY24 to INR 49.45 crore in FY26 and is projected at INR 89.76 crore in FY27, taking their share of total lease cost from 29.12% to 80.03%. Experience Centre average order value in India was INR 90,651 against INR 38,753 online. All Experience Centres are leased or licensed, with terms of roughly twenty months to nine years.

● A large stock option charge sits below the operating line. Exceptional items of INR 122.77 crore in FY25 and INR 117.93 crore in FY26, INR 240.70 crore in all, are entirely share-based payment expense under ESOP 2024. The charge is non-cash but the dilution is real: 49.7 lakh of the 50 lakh options are vested and none exercised, which is 5.84% of post-issue capital and takes the fully diluted market capitalisation to INR 4,889.3 crore against the headline INR 4,603.5 crore. The RHP notes some directors or senior management may sell on exercise within three months of listing.

● Auditor observations are procedural but worth noting. For FY24 and FY25 the auditors reported that the audit trail or edit log feature was not enabled at database level on the accounting software used for sales, purchases and inventory records for parts of the year, specifically 1 April 2024 to 6 November 2024 and, for accounting records, to 11 November 2024.

● The captable is unusually fragmented at 1,126 shareholders, and includes Mukul Mahavir Agrawal at 1.37% alongside names such as Gauri Khan Family Trust, Salman Salim Khan, Sachin Ramesh Tendulkar, Madhuri Shankar Dixit Nene and Shraddha Kapoor from earlier allotments.

EBITDA pre-Adjustment vs Reported EBITDA

Business

● Purple Style Labs operates a marketplace rather than a brand. It buys and sells product from 1,109 active designer brands as at 31 March 2026, with 208,490 SKUs. It does no design or manufacturing. Designer brands set their own retail prices and the price is held constant across the website, the Experience Centres and the designer's own stores. Agreements with designer brands are non-exclusive.

● The platform came in through acquisition. In February 2018 the company purchased the Pernia's Pop-Up Shop website together with related intellectual property, goodwill and assets under an asset purchase agreement. It was an online-only business at that point. The first Experience Centre opened at Juhu, Mumbai later in 2018.

● There are 14 Experience Centres as at the date of the RHP. 12 are in India, at Mumbai (2), Delhi (3), Bengaluru, Chennai, Kolkata, Ahmedabad, Indore, Hyderabad and Surat one each, with one in London and one in New York. The store count shows 15 in FY25 against 14 currently, so the network has contracted on a net basis while shifting to larger formats. All premises are leased or licensed.

● Working capital is managed through back-ordering. A portion of orders are taken and paid for upfront while the product is procured and delivered later, which holds inventory down relative to sales. The company describes its inventory approach as breadth rather than depth, carrying a wide assortment of single pieces rather than depth in any style. Net working capital was INR 86.85 crore in FY26, INR 79.85 crore in FY25 and INR 43.08 crore in FY24, and the cash conversion cycle 105.26 days, 123.57 days and 69.09 days.

● Inventory carries a visible obsolescence charge. Provision for inventory obsolescence was INR 18.36 crore in FY26, INR 10.53 crore in FY25 and INR 9.28 crore in FY24 against closing inventory of INR 163.38 crore, INR 160.34 crore and INR 140.40 crore. Fashion inventory in a wedding-wear catalogue ages, and the provision has roughly doubled in two years while inventory itself has been broadly flat.

● The group has three subsidiaries. PSL Retail Private Limited, wholly owned, operates the Indian Experience Centres and the online platform and is the entity into which INR 371.13 crore of issue proceeds will be invested. Purple Style Labs UK Limited operates the London store and has already been written down, the RHP recording an impairment on the investment. Purple Style Labs USA, Inc., a Delaware corporation incorporated in April 2025, operates the New York store.

● The company has previously acquired designer labels and impaired them. Goodwill of INR 5.81 crore remains on the balance sheet against INR 7.09 crore in FY24, following impairment of the in-house brands Hemant Trevedi and Wendell Rodricks.

Promoters and Leadership

● Abhishek Agarwal, 38, is the Promoter, Whole-Time Director and Chief Executive Officer, and the sole promoter. He holds a bachelor's and a master's degree in aerospace engineering from IIT Bombay and has roughly 14 years of work experience, previously as a senior analyst at Deutsche CIB Centre. He holds 26.09% pre-issue, falling to about 22.46% post-issue on a fully diluted basis at the cap price, or 23.86% before counting vested options.

● Abhinav Agarwal is Whole-Time Director and Chief Business Officer, holding 2.17% pre-issue. He holds a bachelor's degree in civil engineering from IIT Bombay and was previously at Yatra Online and FlexTrade India.

● Hrishikesh Bhalchandra Parandekar is the Chairperson and an Independent Director, appointed Chairperson on 12 September 2025. He is a graduate of the University of Bombay and IIM Ahmedabad with around 29 years in finance, consulting and real estate, previously senior advisor at McKinsey, chief executive of Karvy Stock Broking and managing director at Morgan Stanley's private wealth group, and is currently chief executive at Kolte-Patil Developers.

● The senior management is recent. The chief financial officer, chief operating officer, chief strategy officer and company secretary were all appointed between April and June 2025, roughly a year before the RHP was dated.

Shareholding Pattern

Pre-issue paid up capital is 6,82,35,000 equity shares of face value INR 10 each held by 1,126 shareholders, following a 999 for 1 bonus issue in August 2025. Percentages below are on the fully diluted pre-issue base including 49,70,000 vested ESOP options, which is the basis the RHP uses. Post-issue percentages assume the cap price of INR 575.

Both Fully Diluted captable and captable without vested ESOP is as below.

Issue Details

Total issue size, amount -> INR 680 cr, entirely a fresh issue. There is no offer for sale component, so the company receives the whole of the proceeds and no existing shareholder is selling.

Fresh issue size, amount -> INR 680 cr. To be utilised in:

● Investment in wholly owned subsidiary PSL Retail Private Limited for expenditure towards lease liabilities of Experience Centres and back-end offices in India -> INR 371.13 cr, spread INR 57.15 cr in FY27, INR 117.21 cr in FY28, INR 113.52 cr in FY29 and INR 83.25 cr in FY30. Covers 12 Experience Centres and two back-end offices under existing leases, with contractual escalations of up to 15% every one to three years.

● Funding towards sales and marketing expenses -> INR 138.90 cr, spread INR 18.00 cr in FY27, INR 40.00 cr in FY28, INR 44.00 cr in FY29 and INR 36.90 cr in FY30. Actual sales and marketing spend was INR 30.16 cr in FY26, INR 33.17 cr in FY25 and INR 54.11 cr in FY24.

● General corporate purposes -> balance, not quantified in the RHP, capped at 25% of gross proceeds.

● There is no capital expenditure object and no debt repayment object, notwithstanding borrowings of INR 371.40 cr as at 31 March 2026. Issue expenses are not quantified in the RHP. The funding requirements have not been appraised by any bank or financial institution and rest on management estimates certified by B.B. & Associates, Chartered Accountants.