1. Opening Hook
Kids fashion is apparently the new battleground—because why should startups fight only in food delivery and fintech? While most brands struggle to sell to adults with EMIs, Purple United is busy dressing kids aged 0–14 and quietly racing to 100 stores. From footwear-first hustle to omni-channel ambition, management sounded confident, caffeinated, and slightly allergic to forward guidance.
Revenue doubled, EBITDA followed (almost), and margins politely refused to expand beyond 25–50 bps—because growth, hiring, and marketing don’t pay for themselves.
If you think this is just another “retail expansion story,” stay put. The interesting bits come later—especially around D2C dreams, footwear yield math, and why toys are intentionally kept irrelevant. Trust me, this gets more fun than a kids’ fashion runway.
2. At a Glance
- H1FY26 Revenue ₹60 Cr – Growth sprinted; seasonality waiting in H2.
- Revenue up 99% – Almost doubled, no financial gymnastics detected.
- EBITDA up 81% – Growth showed up, margins lagged behind.
- PAT up 53% – Profits grew, just not as fast as confidence.
- 90+ EBOs, 100 imminent – Store openings faster than influencer reels.
- Apparel 62%, Footwear 37% – Shoes doing heavy lifting, literally.
3. Management’s Key Commentary
“We will touch three-digit stores this month.”
(Translation: Expansion is the only KPI that matters right now 😏)
“Retail and D2C are our control businesses.”
(Translation: Marketplaces are useful, but we don’t trust them with margins.)
“Margins may improve by 25–50 bps.”
(Translation: Don’t expect miracles; salaries and ads eat first.)
“Footwear gives higher yield per square foot.”
(Translation: Shoes monetize space better than cute jackets.)
“Toys are an impulse category.”
(Translation: Nice to have, not worth losing sleep over.)
“Average store payback is 2.5 years.”
(Translation: This is retail, not a SaaS fantasy.)
4. Numbers Decoded
| Metric | Decoded Reality |
|---|---|
| H1FY26 Revenue ₹60 Cr | H2 does the heavy lifting via winter + festivals |
| Gross Margin 55–60% | Fashion SKUs subsidise essentials |
| EBITDA Growth 81% | Scale helped, but costs kept pace |
| Retail Contribution ~50% | Stores opened last year now maturing |
| E-commerce Target 10–12% FY27 | Ambitious, but D2C still under construction |
One-liner: Growth engine strong, margin
