Purple Style Labs Ltd.

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.  