Lenskart IPO: Sky-High Valuations But Huge Buzz—Should You Dive In?

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India’s largest organised eyewear retailer, Lenskart Solutions Ltd, is stepping into the public markets with a Rs 7,278-crore IPO. The issue comprises a Rs 2,150-crore fresh issue and a Rs 5,128-crore offer-for-sale from promoters and early investors. The subscription window is open till November 4.

But the big question remains — is this IPO worth your investment, or should you stay cautious? Dive into our detailed IPO analysis covering growth prospects, financials and potential red flags before you decide.

Lenskart Solutions IPO Details 

  • Issue Details: Mainstream
  • Issue Size: Rs 7,278.02 crore
  • Fresh Issue: Rs 2,150 crore
  • Offer for Sale: Rs 5,128.02 crore
  • Price Band: Rs 382 – Rs 402
  • Lot Size: 37 shares
  • Listing Date: November 10, 2025

Overview of Lenskart Solutions Ltd

  • Lenskart Solutions is a technology-driven eyewear company engaged in the design, manufacturing, branding and retailing of prescription eyeglasses, sunglasses, contact lenses and accessories. In FY25, the company manufactured the third-largest number of eyeglasses globally and the largest in India among leading organised retailers.
  • The company operates five manufacturing facilities across Bhiwadi (Rajasthan), Gurugram (Haryana), Singapore, Dubai and a joint venture in China, enabling an integrated global supply chain. Its installed capacity expanded from 1.52 crore units in FY23 to 2.75 crore units in FY25. A new facility in Hyderabad is under development to further enhance production capacity and localisation.
  • As of June 30, 2025, the company had a network of 2,137 stores in India, supported by 669 international stores. The Indian market remains the company’s primary revenue driver, contributing approximately 61% of total revenue in FY25.

Lenskart Solutions Key Strengths

  • Strong Revenue Growth: Lenskart has maintained strong top-line momentum, delivering a revenue CAGR of 32.5% between FY23 and FY25, supported by continued expansion across markets. Revenue further grew 24.6% year-on-year in Q1 FY26, highlighting sustained growth momentum.
  • Significant Margin Improvement: EBITDA margin (excluding other income and exceptional items) improved from 6.86% in FY23 to 14.6% in FY25, and further to 17.22% in Q1 FY26—driven by improved cost discipline, operating leverage, and scale efficiencies.
  • Strong Store Productivity: Operational performance remained healthy, with FY25 same-store sales growth (SSSG) at 15.7% and same-pincode sales growth (SPSG) at 20.5%. Moreover, about 81% of stores opened in FY23 and FY24 achieved payback by March 31, 2025, with an average payback period of 10.3 months, highlighting efficient capital deployment and store-level profitability.

Lenskart Solutions Risk Factors

  • Weak Earnings: Lenskart reported losses in FY23 and FY24 and turned profitable in FY25. However, a significant portion of this came from one-time accounting gains rather than core operations. This raises concerns about the sustainability and quality of earnings.
  • Dependence on Chinese Imports: About 53% of Lenskart’s raw materials are imported from the People’s Republic of China (PRC), including through Baofeng Framekart Technology Ltd, its joint venture. Any disruption or delay in supplies—especially amid tariff-related or geopolitical uncertainties—could adversely impact business operations and cash flows.
  • Underutilised Capacity: Manufacturing facilities in India, Singapore and Dubai have operated at low utilisation levels ranging between 22% and 54%. Persistent underutilisation points to inefficiencies in asset deployment, potentially pressuring margins and profitability.
  • Cash Flow Constraints: Lenskart has reported negative cash flows from financing and investing activities in the past. Continued strain on liquidity could limit its ability to fund operations, expansion or debt obligations.
  • Legal Risks: Lenskart, along with certain directors, promoters, subsidiaries and key managerial personnel, faces ongoing legal proceedings amounting to Rs 194 crore, including criminal cases. Any adverse verdict could materially affect its financial standing and brand reputation.

Final Thoughts: Should You Subscribe to Lenskart Solutions’ IPO?

  • Lenskart Solutions combines a strong business model with a well-established brand and an ambitious expansion plan across India and international markets. While its long-term growth prospects are promising, the IPO is priced at premium valuations that already reflect aggressive assumptions on growth and profitability, leaving little margin for execution errors.
  • India’s eyewear market, estimated at Rs 78,800 crore in FY25, is projected to nearly double to Rs 1.48 lakh crore by FY30, implying a robust 13% CAGR. With only a 4–6% share in the organised segment, Lenskart has significant scope for expansion.
  • That said, at a valuation of nearly 227x FY25 earnings, the IPO appears stretched. Such pricing implies lofty expectations, making any slowdown in growth or margin pressure a potential risk for post-listing performance. While the company’s long-term story looks promising, near-term upside looks limited unless profitability improves meaningfully.
  • Given these factors, the current risk–reward setup appears unfavourable. A more prudent approach would be to wait and evaluate the company’s performance over the next few quarters—especially since recent profits seem inflated by accounting adjustments. FY26 will be pivotal in establishing sustainable earnings.
  • Long-term investors can revisit the stock once valuations moderate and earnings visibility strengthens.

For a deep dive into other IPOs, explore: IPO Corner on Liquide