Lenskart IPO: Should you apply?

Summary: Lenskart, a reputed brand in the eyewear retailer space, will open its IPO on October 31, 2025. Despite enjoying a significant market share, it grapples with poor profit and return margins. Let’s check whether its IPO is worth subscribing to.

Lenskart Solutions, a well-known eyewear retailer, is set to open its IPO (initial public offering) on October 31, 2025 and will close on November 4, 2025. Of the total issue size of Rs 7,278 crore, the company aims to raise Rs 2,150 crore through a fresh issue, while the remaining Rs 5,128 crore will be raised through an offer for sale (OFS).

Below is a breakdown of Lenskart’s business, financials, strengths, risks and valuation to help you make an informed investing decision.

What the company does

Lenskart is a technology-led, direct-to-consumer eyewear company with integrated operations across design, manufacturing, branding and retail. It offers prescription glasses, sunglasses, contact lenses and accessories through its own brands, catering to varied price points and age groups. The company is India’s largest seller of prescription eyeglasses by volume and among Asia’s top two organised players.

Beyond India, it has expanded to Japan, Southeast Asia and the Middle East. With a 109-member design team, Lenskart launched over 100 in-house collections in FY25, including celebrity collaborations.

Track record and valuation

Lenskart’s past financial performance appears to have been mixed. Though the company posted a double-digit yearly growth in revenue of 33 per cent between FY23 and FY25, its EBIT (earnings before interest and tax) and net income (profit after tax) remained zero or negative, until FY25. 

At the upper end of the price band (Rs 402), the stock is expected to be valued at nearly 189 times its TTM (trailing twelve months) earnings and 8.2 times its book value. It has no listed peers for comparison.

The good

Here are some of Lenskart’s key strengths.

#1 Among the largest eyewear retailers in India and Asia

Lenskart is India’s largest and Asia’s second-largest organised retailer of prescription eyeglasses by B2C sales volume. In FY25, the company sold 27.2 million eyewear units across 2,800 stores, backed by over 100 million app downloads. What’s more, its addressable market across India, Southeast Asia, Japan and the Middle East is projected to reach Rs 3,601 billion by FY30.

#2 Vertical integration

Eyewear retail in India was once a fragmented, high-cost business dominated by local opticians and multiple middlemen. Lenskart disrupted this model by centralising production in two megafactories in Bhiwadi and Gurugram, integrating everything from design to manufacturing. This vertical setup eliminated intermediaries, cutting costs by 35-40 per cent and enabling bulk procurement. Automation further improved speed and consistency, allowing the company to process orders within minutes and deliver glasses within a day in major cities.

The result? Faster turnaround, lower prices and superior margins of nearly 70 per cent per pair, making Lenskart structurally distinct from traditional eyewear retailers.

#3 Omnichannel network

The company operates a seamless omnichannel network spanning its app, website, and physical stores across India and abroad, guided by its mission of ‘Eyewear for All’. Customers can browse online, buy in-store, or vice versa, with unified pricing, integrated returns and synced purchase histories and prescriptions across platforms. This interconnected system simplifies repeat purchases and improves convenience through features like virtual 3D try-ons and real-time store inventory checks.

Nearly 45 per cent of Lenskart’s Indian revenue in FY25 came from customers who interacted digitally before buying, reflecting strong online-offline synergy. Its stores generated over Rs 23,000 in annual revenue per square feet, showcasing the model’s efficiency and profitability.

The bad

Though it has become a household name in the eyewear space, Lenskart faces certain challenges.

#1 Supply chain disruptions

Lenskart sources part of its raw materials and eyewear frames from China, where it also operates a joint venture, Baofeng Framekart Technology, holding a 51 per cent stake. While this partnership aids production efficiency, it also exposes the company to supply chain risks linked to global trade disruptions, tariffs or geopolitical tensions. Any delay or interruption in imports could impact operations and financial performance. The company also faces potential reputational risks if negative sentiment grows around Chinese imports.

#2 Competition from smaller players

India’s eyewear market remains largely unorganised, with nearly 77 per cent of prescription eyewear sales coming from small, independent retailers. These local players typically operate with lower costs and flexible pricing, making it harder for organised brands like Lenskart to raise prices or expand margins. The fragmented nature of the market also leads to inconsistent product quality and service standards.

While Lenskart is the largest organised eyewear retailer by volume, the dominance of the unorganised sector continues to limit the growth potential and profitability of formal players.

Where will the IPO proceeds go?

Of the Rs 2,150 crore fresh issue, Lenskart intends to deploy about Rs 273 crore for capital expenditure, primarily to set up new stores. Another Rs 591 crore will go towards lease and licence costs for its existing outlets across India.

The company also plans to invest Rs 214 crore in strengthening its technology and cloud infrastructure and Rs 320 crore in marketing initiatives. The remaining funds will be reserved for inorganic acquisitions and general corporate purposes.

So, should you apply to the Lenskart IPO?

The Lenskart IPO is among the biggest and most anticipated public issues of the year, expected to make a splash in the market. But real wealth isn’t built on hype, it’s built on patience and discipline. Steady compounding, not short-term excitement, creates lasting success.

Value Research Stock Advisor helps you look beyond the noise to find strong, enduring businesses that grow consistently, ensuring your money keeps working well even after the IPO buzz fades.

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