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 FY24.

Borrowings Rise Sharply

Purple Style Labs' total borrowings climbed to ₹371.40 crore as of March 31, 2026, compared with ₹112.79 crore a year earlier and ₹116.33 crore in FY24.

While total income increased to ₹567.07 crore in FY26 from ₹494 crore in FY25, EBITDA slipped to ₹30.37 crore from ₹41.99 crore.

Womenswear Dominates Business

Another major risk is the company's dependence on womenswear, which contributed 77.7 per cent of Pernia's Pop-Up Shop's gross merchandise value (GMV) during FY26.

The RHP cautioned that changing consumer preferences, weaker demand or failure to anticipate fashion trends could hurt sales and profitability.

Purple Style Labs also faces intellectual property-related uncertainty after receiving a notice from Pernia Qureshi and the seller seeking termination of a licence agreement covering certain rights linked to the Pernia's Pop-Up Shop brand.

IPO Open Until September 2

Expansion into new stores, international markets and premium brands carries additional execution risks. Several designer agreements are also non-exclusive, allowing brands to sell through rival platforms.

The ₹680-crore IPO is entirely a fresh issue of 1.18 crore shares, priced at ₹546-575 apiece. Bidding closes on September 2, with the shares tentatively scheduled to list on the BSE and NSE on September 7.