Buried in Note 62 of Purple Style Labs' restated financials is a sentence most readers will skip past: as of March 31, 2026, the company's current liabilities exceeded its current assets by ₹255.12 crore. That is a working capital gap, and it sits right next to a net loss that nearly doubled to ₹285.4 crore for the year. Neither number is hidden. Both are sitting in the RHP, in the company's own words, because SEBI requires this level of disclosure from every IPO-bound company. Here is what three years of restated financials, an auditor's note, and a litigation annexure actually say about Purple Style Labs, and what they don't. The restated consolidated numbers show an uneven revenue path alongside a widening loss. Revenue grew 13.9% year-on-year to ₹557.84 crore in FY2026, recovering from a dip the year before, while the net loss nearly doubled. What I find more telling than the loss itself is that EBITDA stayed positive across all three years. That means the widening bottom line isn't a story about stores losing money on the shop floor. It's a story about what sits below EBITDA. Two line items explain most of the gap between a modest EBITDA and a ₹285 crore net loss, and the RHP names both directly. Share-based payment expense attributable to directors and KMPs alone came to ₹58.07 crore in FY2026. Read the headline loss number with that in mind. It isn't a clean read on how the retail business is actually performing. This is the part of the filing that a quick skim of the P&L will miss entirely. Note 62 to the restated financials discloses that Purple Style Labs' accumulated losses stood at ₹710.29 crore as of March 31, 2026, up from ₹424.25 crore a year earlier and ₹235.73 crore the year before that. More specifically, current liabilities exceeded current assets by ₹255.12 crore as of March 2026, and by ₹43.84 crore as of March 2024. FY2025 was the outlier, with current assets actually exceeding current liabilities by ₹25.60 crore. The RHP doesn't leave this hanging. Note 62 gives two separate justifications for preparing the accounts on a going concern basis, and they support two different things, not one combined argument. First, on revenue: the company opened new stores in Mumbai, Delhi and New York and expanded existing ones in Kolkata and Surat during FY2026, and management says these store initiatives specifically are expected to increase revenue and profitability in the coming years. Second, on liquidity: the company raised ₹411.30 crore in debt during FY2026, plus a further ₹137.37 crore between April 1 and June 17, 2026 after the reporting year closed, and expects to raise more as needed. The RHP ties that debt to a narrower claim, that management believes the company will be able to meet its liabilities as they fall due, which is the specific basis for the going concern conclusion, not a claim about profitability. That's the company's own justification, not an auditor's finding, and it's worth reading in full if you're deciding whet
