PURPLE STYLE LABS LIMITED

Consumer Cyclical — Apparel Retail · NSE

₹540.00+₹11.20 (+2.12%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of PURPLE STYLE LABS LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Purple Style Labs Limited operates as a luxury fashion house, acquiring and managing designer brands and running an omni-channel platform for premium fashion retail.

IndustryApparel Retail

SectorConsumer Cyclical

Employees1,266

Annual revenue₹558 Cr

How does it make money?

Turns over ₹558 Cr a year. Of every ₹100 of sales, about ₹-51 reaches shareholders as profit, with ₹-18 left at the operating level before interest, tax and depreciation. Each of its 1,266 employees supports ₹44.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹44.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -65.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +51% while net margin moved +356% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+51%

Margin effect+356%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

Red Flags

9 items require attention · 6 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 366% over 3 years, from ₹168 Cr to ₹784 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2.2x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹285 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 20.8 points, from 3.2% to -17.6%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.8x to -2.2x.
🟡Inventory building faster than salesFinancial
Inventory up 88% against revenue up 51% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.52 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 3.2% to -17.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
6 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.7% CAGR
Latest reported year was 13.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -20%✓ -17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹84 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -2.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹4,323 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-34.79

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-65.6%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

13.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-51.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹84 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-40.7%

Weak

Thin margins leave little room for error

Net Margin

-47.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.52

Tight

Tight short-term liquidity

52W Range Position

44%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹369 Cr	₹504 Cr	₹490 Cr	₹558 Cr	+14.7%
EBITDA	₹12 Cr	₹27 Cr	-₹86 Cr	-₹98 Cr	—
EBITDA Margin	3.2%	5.4%	-17.5%	-17.6%	—
PAT (Net Profit)	-₹41 Cr	-₹48 Cr	-₹188 Cr	-₹285 Cr	—
EPS	₹-5.17	₹-5.96	₹-23.53	—	—
ROE	-69.8%	-120.8%	-160.3%	—	—
ROCE	-10.7%	-4.8%	-52.2%	-65.6%	—
Total Debt	₹168 Cr	₹310 Cr	₹287 Cr	₹784 Cr	+67.1%
Free Cash Flow	-₹58 Cr	-₹47 Cr	-₹60 Cr	-₹84 Cr	—

🟢 Revenue has grown at 14.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹12 Cr to -₹98 Cr.

🔴 EBITDA Margin has fallen from 3.2% to -17.6% over 3 years (-20.8 pts).

🔴 ROCE has fallen from -10.7% to -65.6% over 3 years (-54.9 pts).

🔴 Total Debt has grown at 67.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹830 Cr

Total Liabilities

₹882 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

-₹35 Cr

Capex

-₹49 Cr

Shareholding (proxy)

Institutional Holding

14.5%

Insider Holding

34.2%

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

PURPLE STYLE LABS LIMITED Share Price

Upstox, 16 Oct

Purple Style Labs Ltd | Stock Share Price Live

MarketSmith India, 16 Oct

Purple Style Labs IPO: Price, Dates, P/E Ratio & How to Apply

INDmoney, 04 Sept

Tepid debut: Purple Style Labs shares list at 7% discount to IPO price on NSE

Moneycontrol.com, 07 Sept

Purple Style Labs Approves $7 Million US Subsidiary Investment From IPO Proceeds

Sahi, 21 Sept

Purple Style Labs Yearly results, Financial Summary

The Economic Times, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

PURPLE STYLE LABS LIMITED owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 6 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑