1. At a Glance
Purple United Sales Ltd — the company that made kidswear so profitable it could pay for your kid’s MBA someday. Listed in December 2024, this infant fashion powerhouse now struts with amarket cap of ₹502 crore, and a stock that’sup 89.5% in six months. Trading at₹522, with aP/E of 41.1x, it’s clearly not your average diaper-level startup.
InQ2FY26 (September 2025), the company reportedsales of ₹60.7 croreandPAT of ₹5.05 crore, marking a jaw-dropping99% YoY growth in salesand53.5% growth in profits. ROE at26.9%, ROCE at26.2%, andzero pledges— this baby is walking strong.
And if you thought “kidswear” was too cute to be serious business — Purple United’s₹133 crore TTM salesand₹12.2 crore profitsay otherwise. The company’s63.8% promoter holdingensures the family’s fully invested, and the balance sheet’s growing faster than a toddler in a growth spurt.
But before you get starry-eyed, here’s the catch —214 days debtor cycle,high EV/EBITDA of 20.9, andzero dividends. Basically, they’re fashionable, profitable, but love hoarding cash.
So, can this kiddie couture brand keep growing like it’s on a sugar rush? Let’s find out.
2. Introduction
If you thought kids only spend money on candy, think again —Purple United Sales Ltdhas built an entire empire convincing parents to splurge on party gowns, rompers, sandals, and strollers for their tiny emperors.
Founded in 2014, this Gurugram-based fashion company started with one vision: to make every kid look like a brand ambassador for Instagram before they can even spell “fashion.” Today, its products are sold in24 exclusive stores,14 shop-in-shops,44 retail partners, and online throughMyntra, Amazon, Flipkart, FirstCry, Nykaa, Ajio, and their own website.
Theflagship brand, Purple United Kids, offerslab-testedclothing and footwear for children aged 0–12 years. Because nothing says “responsible parent” like ensuring your child’s T-shirt has passed more lab tests than your college thesis.
From ₹15 crore sales in FY21 to ₹103 crore by FY25 — that’s a 7x jump in four years. Profits climbed from a loss of ₹3 crore in FY21 to a solid ₹12 crore now. The IPO in December 2024 raised ₹32.9 crore, which they’re using to open new stores and fuel working capital.
In the words of every Indian parent: “If we’re spending this much on kids, it better have resale value.” Turns out, Purple United made that wish come true — in share form.
3. Business Model – WTF Do They Even Do?
Purple United isn’t just making cute clothes — it’s building a mini fashion economy for the pint-sized population.
The company designs, sources, manufactures, and sellsclothing, footwear, and accessoriesfor children. Think of it as aH&M-meets-FirstCry hybrid, minus the chaos of returns. Their products range fromT-shirts, jackets, and party weartofootwear, caps, and even strollers— because branding starts at birth.
They operate primarily throughfour channels:
- Retail stores (29%)– The company’s own exclusive brand outlets (EBOs) spread across 17 cities.
- Distributors (60%)– The real engine, pushing products nationwide.
- Online (9%)– Through e-commerce platforms and their website.
- Key Accounts & Others (2%)– Shop-in-shops and miscellaneous sales.
They’ve cleverly built three sub-brands:
- Toothless– For free-spirited kids who prefer their T-shirts loud and fearless.
- That’s Her Style (THS)– Dresses and gowns for girls who want to outshine their moms.
- That’s His Style (THS)– Premium boys’ partywear that could make even a best man jealous.
With650 SKUs(400 apparel + 250 footwear) expanding to690 next year, this brand isn’t slowing down. They plan33 stores by FY25and already touched79 by Nov 2025— apparently, expansion is the only word in their baby dictionary.
If Purple United were a child, it would be that overachiever who aces every subject and still runs the school fashion show.
4. Financials Overview
(Data Type: Half-Yearly Results, Figures in ₹ crore)
| Metric | Sep 2025 | Sep 2024 (YoY) | Mar 2025 (Prev Half) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 61 | 30 | 73 | 103% | -16.4% |
| EBITDA | 13 | 7 | 14 | 85.7% | -7.1% |
| PAT | 5 | 3 | 7 | 66.6% | -28.6% |
| EPS (₹) | 5.26 | 4.70 | 7.47 | 12% | -29.6% |
Annualised EPS (Half-Year × 2) = ₹10.52P/E = ₹522 / ₹10.52 = 49.6x
Yup, fashion comes at a premium — this is more Gucci than Bata on valuation.
Commentary:YoY growth is solid — doubling revenue and 67% jump in profit. QoQ softness suggests seasonality (kids don’t shop for woollens in September). But hey, if your profit margins are still over 20% while selling socks and rompers, you’re clearly doing something right.
5. Valuation Discussion – Fair Value Range Only
Let’s decode this designer valuation without ruining the mood.
Method 1: P/E Method
- EPS (Annualised): ₹10.52
- Industry P/E: 29.8
- Company P/E: 41.1Fair Value Range = ₹10.52 × (30–45) = ₹316 to ₹474
Method 2: EV/EBITDA Method
- EV = ₹555 crore
- EBITDA = ₹26 crore (TTM)
- EV/EBITDA = 21.3xIndustry average = ~15xFair Value Range = ₹26 × (15–20) = ₹390–₹520 crore EV→ Per share (assuming same equity base): ₹370–₹495
Method 3: DCF (Simplified Educational Model)
Assume FCF growth 20% for 5 years, discount 12%, terminal growth 5%.Approx fair value lands between ₹400–₹550 depending on assumptions.
👉 Educational Fair Value Range: ₹370 – ₹495 per share
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
November 2025 has been a runway month — Purple United openedfive new storesinMumbai, Rohtak, Guwahati, Ghaziabad, and Rampur, taking the total to79 stores.
Earlier inOctober, the company’s board approved a plan toraise up to ₹70 crore— possibly to fund further expansion. Translation: “We’re just getting started, and we need more pocket money.”
InDecember 2024, Purple United launched anew toy product line— because why stop at clothing when you can sell the whole childhood experience?
ASEBI compliance certificatein October 2025 reaffirmed that the company’s paperwork is cleaner than your kid’s new uniform (on Day 1).
The momentum’s clearly there: expansion, new categories, and fundraise plans. The question is — can their supply chain keep up when half their cash is
