PURPLEUTED - Purple United

📊 NSE: PURPLEUTED 🏢 Trading 📅 Last Updated: 12/14/2025 11:23

💰 Financial Performance

Revenue Growth by Segment

The company reported a standalone revenue from operations of INR 10,312.75 Lakhs in FY 2024-25, representing a significant year-on-year growth of 138.19% compared to INR 4,329.71 Lakhs in FY 2024. In H1 FY26, revenue from operations continued to grow by 99% YoY.

Geographic Revenue Split

Not specifically disclosed in available documents; however, the company operates in the global children's apparel market with a focus on expanding its retail store footprint.

Profitability Margins

Net Profit Margin improved to 10.16% in FY 2024-25 from 9.77% in FY 2023-24, driven by better cost control. Operating Profit Margin decreased to 20.10% from 22.44% as exceptional revenue growth impacted operational scaling. H1 FY26 PAT margin was reported at 8.32%.

EBITDA Margin

EBITDA for FY 2024-25 stood at INR 2,073.07 Lakhs, a 115.28% increase from INR 962.96 Lakhs in the previous year. The EBITDA margin for H1 FY26 was approximately 21%, with EBITDA jumping 81% YoY during that period.

Capital Expenditure

While specific INR Cr figures for future CAPEX are not detailed, the company is investing in automating purchase, sales, procurement, and payment operations, and expanding its store network which requires 3 to 6 months to reach maturity.

Credit Rating & Borrowing

Finance costs increased to INR 483.98 Lakhs in FY 2024-25 from INR 302.51 Lakhs. However, the Interest Coverage Ratio improved to 5.52 times from 3.67 times due to higher earnings. The Debt-Equity ratio improved significantly to 0.68 from 1.48 following an equity infusion from the IPO.

⚙️ Operational Drivers

Raw Materials

Traded goods (children's apparel and hard goods) represent the primary cost, with 'Purchase of traded goods' amounting to INR 6,005.08 Lakhs, which is approximately 58.2% of total revenue.

Capacity Expansion

The company is expanding its store network and team size. New stores typically require a 3 to 6 month gestation period to reach optimal operational levels. Total assets jumped by 23% in H1 FY26 to support this expansion.

Raw Material Costs

Purchase of traded goods rose to INR 6,005.08 Lakhs in FY 2024-25 from INR 1,818.58 Lakhs in FY 2023-24, a 230% increase, reflecting the massive scale-up in sales volume.

Manufacturing Efficiency

The company operates a trading model. Efficiency is measured by the Inventory Turnover Ratio, which improved significantly to 3.87 times in FY 2024-25 from 1.87 times in FY 2023-24 due to better sales velocity.

Logistics & Distribution

Not specifically disclosed as a separate percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

91%

Growth Strategy

Growth is driven by a 'premium listing' IPO that infused equity, aggressive retail store expansion, and a focus on the '3Fs' (Fun, Fashion, and Functionality). The company is also hiring senior-level employees and increasing marketing efforts to fuel long-term margin improvement.

Products & Services

Apparel and hard goods specifically designed for children aged 0 to 14 years, including versatile styles for various occasions and seasons.

Brand Portfolio

Purple United.

New Products/Services

Continuous innovation in children's apparel and hard goods; specific new product revenue contributions are not disclosed.

Market Expansion

The company is expanding its retail presence and team size to capture a larger share of the global children's apparel market.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized children's wear that balances fashion with functionality. Purple United is positioning itself as a 'future-ready' family brand to capitalize on this trend.

Competitive Landscape

The company faces competition in the children's apparel sector, responding with a 'premium' market positioning and robust operational execution.

Competitive Moat

Moat is built on brand ethos (comfort, safety, responsibility) and a specialized focus on the 0-14 age segment. The sustainability of this moat is supported by a transition to automated, highly structured internal systems.

Macro Economic Sensitivity

The company is sensitive to the global children's apparel market trends, which are currently poised for steady growth.

Consumer Behavior

Parents are increasingly seeking fashion choices that empower children to express themselves, driving demand for vibrant and versatile styles.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act, 2013 and Indian GAAP. The company is required to maintain internal financial controls under Section 143(3)(i) of the Act.

Taxation Policy Impact

The effective tax rate for FY 2024-25 was approximately 25.6%, with a total tax expense of INR 360.43 Lakhs on a Profit Before Tax of INR 1,407.87 Lakhs.

Legal Contingencies

The company has pending litigations for which provisions have been created against assets to cover potential impacts on its financial position.

⚠️ Risk Analysis

Key Uncertainties

Potential for material misstatements due to error or fraud (inherent limitation of controls) and the risk that new stores may not reach 'regime level' profitability within the expected 3-6 months.