Purple Style Labs LimitedRetailPERNIASPOP
Q1 FY27 concall · earnings callPurple Style Labs Limited
Q1 FY27 was the first quarter reflecting the full cost base of four large FY26 experience centers, with GMV and AOV growth and improved cash burn offset by higher operating costs and continued losses.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| GMV | ₹193 Cr | vs ₹133 Cr in Q1 FY26 | |
| AOV | INR86,000 | vs INR66,000 in Q1 FY26 | |
| Revenue from operations | ₹119 Cr | vs ₹106 Cr in Q1 FY26 | |
| Gross margin | 36% | same as Q1 last year | |
| EBITDA | negative ₹11 Cr | vs negative ₹4 Cr in Q1 FY26 | |
| PAT (loss) | ₹88 Cr | vs loss of ₹100 Cr in Q1 FY26 | |
| Inventory | ₹159 Cr | vs ₹174 Cr in Q1 FY26 | |
| Net cash used in operating activities | ₹19 Cr | vs ₹55 Cr in Q1 FY26 |
TL;DR
- GMV grew to INR193 crores from INR133 crores in Q1 FY26 while AOV rose to INR86,000 from INR66,000
- Revenue rose to INR119 crores with gross margin at 36%, but EBITDA was negative INR11 crores on the expanded store base
- Inventory declined to INR159 crores and net working capital to INR66 crores, with operating cash use improving to INR19 crores
- Strategy remains focused on large-format centers, luxury curation above 1 lakh women's wear and menswear, and operating leverage
Said on the call
“Therefore, we see online and offline not as competing channels, but as complementary in our customer journey.”
From the Q&A
| Topic | What management said |
|---|---|
| Working capital and funding | Management said inventory fell on better breadth-based management and working capital fell on lower inventory plus higher customer advances of INR49 crores, but Q1 remained cash negative due to interest on INR370 crores debt and fixed costs, with operating leverage expected in subsequent quarters. |
| Luxury shift and margins | Management said percentage gross margins do not differ much by price point, so benefit of trimming below 35,000 women's wear is higher absolute gross profit per transaction and lower complexity on customer and designer side. |
| Inventory model | Management said booked inventory is outright purchase, backorder is funded by upfront customer advances of about one month of revenue with 7 to 90 days delivery, and declined to disclose consignment split; breadth over depth with mostly singular quantities. |
| Costs and breakeven | Management said Q1 reflects the fixed cost base after FY26 expansion, with lease interest plus ROU depreciation stable unless stores change and other finance costs linked to borrowings to reduce as operational profit accrues. |
| Geography growth and New York | Management tracks geography GMV not same-store sales due to store replacements; US online GMV decline was due to long-tail trimming, with New York store opened in March 2026 and performance to be judged on omni-channel US growth. |
Guidance
- No significant expansion in sight after four large stores opened in FY26; Q1 FY27 cost structure to remain broadly flattish unless stores change
- Focus on deepening presence in key markets, improving customer experience and store productivity, and strengthening inventory and working capital efficiency
- Inventory expected to remain in current range if no expansion, with customer advances moving broadly with revenue
Source
Summary written from the transcript filed by Purple Style Labs Limited for the call held on 29 Sept 2026; published 6 Oct 2026, 14:04 IST.
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